Murthy 30 June 2023

RERA registration plotted development

Is RERA registration mandatory for sites in a plotted development in a layout formed in April 2016 and commencement certificate issued theteof February 2016 .Can one buy the site thetein and avail bank loan??

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Quick Summary

This discussion explores whether RERA registration is mandatory for plotted developments, particularly for layouts established before RERA's full implementation. While some older projects might seem exempt, it's clarified that projects with 8 or more units generally require RERA registration. The consensus is that RERA approval is crucial for transparency and legal recourse, impacting bank loan eligibility and the ability to buy or sell plots. It's advised to proceed with caution if RERA registration appears to be missing.

6 Replies

T. Kalaiselvan, Advocate (Advocate) 01 July 2023

It is not mandatory for RERA registration to obtain home loan from bank.

If the developer is a RERA registered builder then he may have to register this project with RERA or not will depend on him

Dr. J C Vashista (Advocate ) 01 July 2023

Whether it is the case of Builder or purchaser of a flat/ plot ?

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 01 July 2023

All projects that have 8 or more units, whether having a CC or not, should be registered under RERA. However, a project cannot be considered completed until the RWA of the society is formed and operations handed over to the society in line with the RERA.

Murthy 01 July 2023

It is the case of purchaser of plot in residential layout Commencement certificate is issued in 2016 and special power of attorney holder of vendor says RERA registration not necessary whether to go ahead with sale

T. Kalaiselvan, Advocate (Advocate) 01 July 2023

Your original question was that the banks insist oin RERA egistration for granting home loan, hence the answer was that the bank don't have to insist on RERA registration.

However please note that RERA approval is mandatory for all real estate projects, including plots, in Tamil Nadu.

In fact, without registration with the RERA administration, no project can even be initiated. Before commencing the project, the developer had to provide specifics about it and provide frequent updates via RERA on its website. As a result, both purchasing and selling such property are prohibited.