RERA Regime - The Exemption Conundrum

Introduction

Over the years, since the enactment of the Real Estate (Regulation and Development) Act, 2016 ("RERA"), the authorities constituted under RERA ("Authority(ies)") have adjudicated on various complex issues stemming therefrom. One such issue revolves around the exemptions available to certain real estate projects¹ from being registered under RERA².

In this third edition of our RERA Regime series³, we aim to understand the parameters of a very specific exclusion provided under Section 3(2)(a) of RERA which was originally devised to provide relief to small real estate projects from the rigours of registration under RERA.⁴

Regulatory Overview

Under RERA, registration of a real estate project is mandatory if a promoter⁵ intends to "advertise, market, book, sell, or offer for sale, or invite persons to purchase" any plot, apartment or building in such real estate project⁶. There are, however, certain exceptions to this rule provided under Section