Raja K S Tanwar (SME) 30 July 2025

Rera guidelines on institutional land

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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3 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 30 July 2025

A repeated query, as it was posted in the expert's column.

T. Kalaiselvan, Advocate (Advocate) 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.

Dr. J C Vashista (Advocate ) 31 July 2025

Sale / purchase is illegal and void.

Contact and consult a local prudent lawyer for inspection of case file, analyse the circumstances, form proper opinion, professional advise and necessary proceeding