Question And Answer
Subject: Whether ERA applies to business of open plotting of land. ?
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Date: May 25, 2021
Query asked by MURALI KRISHNA E


Please let me know whether the RERA applies to business of open plotting of land and business of construction of individual houses  even if the size of each plot sold is below 500 sq. meters. If the applicable to any of them, is there any provision for lesser penalty if applied voluntarily  for registration of the project under RERA provisions, after commencement of sales of open plots/ villas ? If common rules of penalty applicable, what is the outgo please explain.

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Answer given by

RERA will not apply where plot area is less than 500 sq metres and no of apartments (inclusive of all phases) is less than 8.
Section 59 provides for penalty for non-registration of project. Penalty is determined by the Authority and maximum penalty is 10 per-cent of the estimated cost of the project. You may make out a case for levy for least penalty wherein voluntary application for registration will be a relevant factor.

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