Rera guidelines on institutional land

Querist : Anonymous (Querist) 30 July 2025 This query is : Resolved
Hi Kindly Guide -

A promoter sold Institutional land under Residential plot scheme. Now development authority declined its land conversion as per High Court orders. So, Kindly guide -

1) Can a case be filed in RERA. As land is institutional but sold as Residential Plot. if Yes - Under which Section of RERA

2) Can this Institutional Land be registered in RERA under which section of RERA. As it is sold as plotting to buyers.

3) Are Institutional Land liable to register in RERA, if yes .. Why and under which section of RERA.

4) Can this be termed as unfair trade practice in RERA and under which section.

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Quick Summary

This discussion addresses concerns regarding a promoter selling institutional land under a residential plot scheme, which was subsequently declined for land conversion by the development authority. The core questions revolve around whether RERA applies, under which sections institutional land can be registered or sold as residential plots, and if this constitutes an unfair trade practice. While selling institutional land as residential plots is a serious violation, potentially allowing buyers to seek refunds and compensation, expert opinions within the thread are divided on RERA's direct applicability and specific provisions for such scenarios, with a recommendation to consult a local lawyer.

kavksatyanarayana (Expert) 30 July 2025
A promoter cannot typically sell institutional land for residential purposes without proper approvals and changes in land use classification. Institutional land is usually designated for specific public or community uses, and converting it to residential use requires authorisation and a formal rezoning process. But the remaining queries seem to be a question paper for the members of this forum.

T. Kalaiselvan, Advocate (Expert) 31 July 2025
Selling institutional plots as residential plots is a serious violation and can lead to legal action against the developer. Homebuyers can seek refunds, file complaints with consumer forums or RERA, and potentially pursue criminal charges.

If the developer has misrepresented the type of plot, buyers can demand a full refund and potentially seek 18% interest on the paid amount.

Filing a complaint with the Real Estate Regulatory Authority (RERA) or a consumer forum is a crucial step.

These forums can order the developer to refund the money, pay compensation, and potentially impose penalties.

In cases of fraud or cheating, criminal charges can be filed against the developer.

If a sale deed has been executed, buyers can explore options for canceling the deed, especially if the developer failed to fulfill their obligations.

Gather evidence to support your claims, such as the developer's marketing materials, plot maps, and any other documentation that proves the misrepresentation.

You have posted the same query in another thread in the forum section, you my have a control over your anxiety to not repeat the same questions in different threads.

Dr. J C Vashista (Expert) 31 July 2025
Repeated query in other forum.
Contact and consult a local prudent lawyer for inspection of judicial file, analyse the circumstances, form proper opinion, professional advise and necessary proceeding

P. Venu (Expert) 31 July 2025
Is the residential plot scheme duly approved? If not, how did the purchasers allowed themselves to be misguided?

N.K.Assumi (Expert) 02 August 2025
I don't see any reasons why Institutional land should be prohibited for sale, nor do I find any provisions under RERA for such sale. I also wish to know from the experts on this query.

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