Unregistered Project complaint in UPRERA: Was your complaint rejected in RERA because the project was not registered? Or have you noticed a promoter developing a real estate project without registering it in RERA?
Either way, the UP-RERA authority cannot take any action against the project unless it is registered under Section 3 of the RERA Act.
In this article, I will discuss how you can make an Unregistered Project complaint in UP-RERA. However, you must know all the key information about unregistered projects.
Below is an outline of this article. Please feel free to browse the content.
What is an Unregistered Project?
To put simply, Unregistered project is a project not registered with the RERA authority under the terms of Section-3 of the RERA Act 2016.
If a promoter wants to sell, market, or advertise a real estate project, he must register such project in the RERA. This is a compulsory requirement every promoter needs to follow. To do so, the promoter shall follow the requirements set out under Section 3, 4 and the UP-RERA Rules made thereunder.
What is Section 3 of the RERA Act 2016?
3. (1) No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act:
Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act:
Provided further that if the Authority thinks necessary, in the interest of allottees, for projects which are developed beyond the planning area but with the requisite permission of the local authority, it may, by order, direct the promoter of such project to register with the Authority, and the provisions of this Act or the rules and regulations made thereunder, shall apply to such projects from that stage of registration.
(2) Notwithstanding anything contained in sub-section (1), no registration of the real estate project shall be required—
(a) where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases:
Provided that, if the appropriate Government considers it necessary, it may reduce the threshold below five hundred square meters or eight apartments inclusive of all phases, for exemption from registration under this Act;
(b) where the promoter has received a completion certificate for a real estate project prior to commencement of this Act;
(c) for the purpose of renovation, repair, or re-development which does not involve marketing, advertising, selling or new allotment of any apartment, plot, or building under the real estate project.
Explanation—For the purpose of this section, where the real estate project is to be developed in phases, every such phase shall be considered a stand-alone real estate project, and the promoter shall obtain registration under this Act for each phase separately.
Are there any exemptions for a real estate project to not fall within the RERA Act?
Section 3 of the RERA Act also lays certain exemptions which specifically exempt a real estate project under the registration category.
Exemptions as laid out by Section 3 of the RERA Act 2016
A real estate project does not need to be registered in RERA if it complies with the conditions below-
- If the land proposed to be developed has not exceeded 500 Sq. m.
- If the number of apartments proposed to be developed has not exceeded 8 inclusive of all phases. (Note- The Government can reduce the above limits)
- If the promoter has received the Completion Certificate in respect of such project.
- If the promoter is renovating, repairing, or re-developing the project. (Note- This should involve marketing, advertising, selling or a new allotment of any apartment, plot, or building)
- Note- Every phase of a real estate project shall be considered as a standalone project. Hence, a promoter must check if the exemption applies to such phases individually)
Differences between a registered project and unregistered project
Below is the comprehensive difference between an unregistered and a registered project in UP-RERA.
| Points of Difference | Registered Project | Unregistered Project |
|---|---|---|
| Covered under the RERA Act? | YES | NO. The RERA Act only applies after the registration under Section 3. |
| Can the RERA Court decide a complaint/ Jurisdiction? | YES | NO |
| Is promoter liable for penalty/ Can the Promoter be punished? | If the promoter violates the Act in respect of the real estate project | The promoter is liable for penalty under Section 59 for non-registration of the project. (Highly debatable issue) The Authority can also levy penalty by exercising its power under Section 35 and as per the Preamble of the RERA Act. |
| How much penalty can the Authority impose on the promoter? | This is subject to types of offences committed by the promoter. | As per Section 59, the Authority can impose a cost of 10% of the total cost of the real estate project on the project. Also, the promoter can also be imprisoned for a term not exceeding 3 years. |
| Should I invest here? | Recommended | Not recommended at all. |
| Can I make a complaint online? | YES. Note– Only online complaints can be made in respect of the registered real estate project. | NO. However, you can address an offline complaint and send it via post, mail, or hand it personally in the RERA office. |
Making Unregistered Project Complaint in UP-RERA in 4 Easy Steps
To file or lodge a complaint against an unregistered project in UP-RERA, follow the steps below:
- Write an offline unregistered project complaint and address it to the concerned official. The best preferred way is to contact a RERA Lawyer to draft the complaint.
- Either email this unregistered project complaint or post it through the nearest post office or hand it over personally in the Lucknow office at the UP-RERA office.
- You are done!
- Track the complaint occasionally via contacting the UP-RERA help desk.
Conclusion
Lot of complaints in UP-RERA are being dismissed since the project are not registered in UP-RERA. The best way to complain against these is to file an offline Unregistered project complaint in UP-RERA.
The procedure of filing the Unregistered Project complaint in UP-RERA is subject to change as per the present laws and procedure.
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Frequently Asked Questions
Can RERA Authority take action against unregistered projects?
Yes, RERA Authority can take action against unregistered projects if such project is covered under the ambit of Section-3 of the RERA Act, 2016.
What happens if a project is not registered with RERA?
In such cases, the RERA Authority conducts a thorough inspection that the project is covered under the ambit of Section-3 of the RERA Act, 2016. If so, then the promoter is issued legal notices for registering the project with RERA. If the promoter does not comply, then he is penalized by the Authority as per Section 59 of the RERA Act, 2016.
How can I complain to RERA Uttar Pradesh?
To complain in UP-RERA for unregistered project, follow these steps-
1. Write an offline complaint.
2. Submit it via post or email it to the RERA Authority.
Is RERA applicable for old projects?
Yes, RERA is applicable on old projects. But such projects must be covered under the section 3 of the RERA Act, 2016. Section 3 also lays certain exemptions for projects.
What to do if a builder is not Rera registered?
If the builder is not registered in RERA, then first check that whether his project is covered under the RERA Act. Write a complaint or file an online complaint, if the State RERA allows and attach the important evidences that the project is registrable under the Section-3.
Is it safe to buy non RERA approved project?
It is totally not safe to buy a project not approved by RERA. The promoter may cheat you after taking the advance. There are high chances that such project is still not in development. For more info, read the article- Should I Buy Flat or Apartment not Registered in RERA in 2022?
