The Kerala Real Estate Regulatory Authority (K-RERA) has sought to bring more clarity to the definition of ‘real estate project’, as it would apply under the Real Estate (Regulation and Development) Act, 2016.
The authority issued orders stating that if the land under development exceeds 500 sq. metres in area, it will be considered a real estate project even if the number of units— apartments, plots and villas—are less than eight in number. It will also be considered a real estate project even if the land in question is below 500 sq metres, but the number of units exceeds eight.
Real estate promoters should mandatorily register all such projects that fall within this definition of K-RERA. Failure to do so will attract penal action under Section 59 of the Act, the authority, headed by chairman P.H. Kurian, says.
Section 3(2)(a) of the Real Estate (Regulation and Development) Act, 2016 says that “no registration of a real estate project is required where the area of land proposed to be developed does not exceed 500 square metres or the number of apartments proposed to be developed does not exceed eight, inclusive of all phases”.
Through its clarification, the commission has sought to clear any confusion that exists with regard to the threshold limits for exemption from mandatory registration with K-RERA. It is also intended to make sure that developers do not evade registration through a misinterpretation of the Act.
The authority says it received several queries regarding the threshold limits prescribed under Section 3(2)(a). Also, ‘‘numerous developers in the State have been evading registration by stating that their project does not match all requirements and has fewer than eight apartments and so on,’‘ the commission’s order notes.
The commission further observed that the 2016 Act is meant to ensure that the interests of the consumers/buyers are adequately protected.
