No RERA Registration Needed for Projects Under 500 Sq Yd: TGRERA

• No RERA registration needed for projects under 500 sq yd, Tribunal confirms

• Hyderabad project built on 459 sq yd declared exempt

• Buyers in such cases can approach civil courts or consumer forums

Hyderabad: Telangana Real Estate Regulatory Authority (TGRERA) Appellate Tribunal has ruled that no RERA registration needed for projects under 500 sq yd, even if disputes arise over the number of flats constructed.

The verdict came during the hearing of appeals related to Sri Vajra Residency, a residential project located in Nallakunta, Hyderabad. The Tribunal set aside an earlier order that had directed the developer to address deficiencies, hand over the occupancy certificate, and pay a penalty of Rs 2.82 lakh.

What the Law Says

Referring to Section 3(2)(a) of the Real Estate (Regulation and Development) Act, the bench clarified that no RERA registration needed for projects under 500 sq yd, or projects comprising fewer than eight apartments.

Importantly, the Tribunal observed that if even one of these two conditions is fulfilled, the project qualifies for exemption from mandatory RERA registration.

Background of the Dispute

The dispute involved a residential building constructed on 459 square yards of land, with approval for stilt plus four floors and eight flats.

A flat owner had earlier approached RERA alleging that the developer failed to resolve agreed issues and did not provide the occupancy certificate. In July, RERA had directed the developer to address these concerns and imposed a financial penalty.

However, the developer challenged the order before the Appellate Tribunal, arguing that since the land parcel measured only 459 sq yd, no RERA registration needed for projects under 500 sq yd applied in this case.

The developer’s counsel also stated that while approval was granted for eight flats, later internal modifications by the landowner increased the number of units to ten. The complainant argued that exceeding eight flats should make the project liable for RERA registration.

Tribunal’s Final Decision

The bench, led by Chairperson A Santosh Reddy along with Judicial Member P Pradeep Kumar Reddy and Administrative Member Chitra Ramachandran, ruled that the land size was the deciding factor. Since the project was built on less than 500 sq yd, no RERA registration needed for projects under 500 sq yd, regardless of the flat count.

With this observation, the Tribunal overturned the earlier RERA directive.

The Tribunal also clarified that buyers in projects where no RERA registration needed for projects under 500 sq yd still have legal remedies. They may approach civil courts or consumer commissions for dispute resolution.

The decision provides clarity to small developers and property buyers in Telangana. It confirms that land size alone can determine exemption, offering legal certainty for smaller residential constructions.

For buyers, the ruling highlights the importance of verifying project size and approval details before investing, especially in projects where no RERA registration needed for projects under 500 sq yd applies.