No RERA registration needed for projects under 500 sq yd: TGRERA

Hyderabad: The Telangana Real Estate Regulatory Authority (RERA) Appellate Tribunal has ruled that construction projects undertaken on land measuring less than 500 square yards do not require RERA registration, even if certain other conditions are disputed.

Delivering its verdict, the Tribunal clarified that under Section 3(2)(a) of the Real Estate (Regulation and Development) Act, projects built on plots below 500 square yards, or those comprising fewer than eight flats, are exempt from mandatory RERA registration.

The bench stated that if any one of these conditions is satisfied, the project qualifies for exemption.

Dispute involving Nallakunta project in Hyderabad

The ruling came while hearing appeals filed by both parties in a dispute involving Sri Vajra Residency in Nallakunta, Hyderabad.

The developer, RR Construction, had earlier been directed by RERA in July to resolve deficiencies in the apartment complex, hand over the occupancy certificate to the association, and pay a penalty of Rs 2,82,276 following a complaint by flat owner Veenadhari.

She had alleged that the developer failed to address agreed-upon issues and did not provide the occupancy certificate as promised.

Challenging the order before the Appellate Tribunal, the developer’s counsel argued that the project was constructed on 459 square yards of land, with permission for a stilt plus four floors comprising eight flats.

According to the developer, the building was constructed as per approval. The counsel further submitted that subsequent internal modifications by the landowner resulted in the division of two floors into additional units, increasing the number of flats to ten.

The complainant’s counsel contended that even if the 500-square-yard condition was met, the presence of ten flats made the project liable for RERA registration.

Bench’s verdict

However, the bench — comprising Chairperson A Santosh Reddy, Judicial Member P Pradeep Kumar Reddy, and Administrative Member Chitra Ramachandran, held that since the project was constructed on land measuring less than 500 square yards, RERA provisions would not apply.

The Tribunal set aside the earlier RERA order.

It further observed that buyers in such exempted projects may seek legal remedies before civil courts or the consumer commission for dispute resolution.