2.1 Mandatory Project Registration & Exemptions
Key Takeaways
A project requiring registration must be registered before advertising, marketing, booking or selling. Land area <=500 sq. metres OR apartment count <=8, inclusive of all phases, qualifies for the section 3(2)(a) small-project exemption, subject to reduced government thresholds.
Section 3(2) exempts qualifying small projects using OR, projects with a completion certificate before the Act’s commencement, and renovation, repair or redevelopment without marketing, advertising, selling or new allotment.
Phase-wise registration under the Explanation to section 3 allows large developments to register each phase as an independent real estate project with its own completion date and 70% separate escrow account.
Promoters marketing or accepting bookings for unregistered projects face penalties up to 10% of total project cost under Section 59(1), and up to 3 years imprisonment or additional 10% fine under Section 59(2) for continued default.
Registration validity aligns strictly with the promoter's declared completion date, with extensions under Section 6 capped at an aggregate maximum of 1 year for force majeure or reasonable cause.
2.1 Mandatory Project Registration & Exemptions
Quick Summary: Section 3 of the Real Estate (Regulation and Development) Act, 2016 (RERA) mandates that no promoter can advertise, market, book, sell, or offer for sale any plot, apartment, or building in a real estate project without prior registration with MahaRERA. Section 3(2)(a) exempts a project where land area does not exceed 500 square metres OR the number of apartments does not exceed 8, inclusive of all phases. If neither small-project condition is satisfied, check the other statutory exemptions before applying the registration requirement. The appropriate government may reduce the small-project thresholds.
1. Statutory Registration Mandate & Thresholds (Section 3(1))
Under Section 3(1) of RERA 2016, mandatory registration with the Maharashtra Real Estate Regulatory Authority (MahaRERA) applies before advertising, marketing, booking, selling, offering for sale or inviting purchases of a covered project, unless an exemption under section 3(2) applies.
The small-project exemption in Section 3(2)(a) uses an OR condition:
The apartment count includes all phases. The appropriate government may reduce these thresholds.
| Test | Result under the published statutory thresholds |
|---|---|
| Land area <=500 square metres | Small-project exemption applies, even if there are more than 8 apartments |
| Apartment count <=8, inclusive of all phases | Small-project exemption applies, even if land exceeds 500 square metres |
| Land >500 square metres AND apartments >8 | Neither small-project exemption applies; examine the other section 3(2) exemptions |
| Exactly 500 square metres or exactly 8 apartments | “Does not exceed” includes equality |
Worked Threshold Checks
- Scenario A: 6 apartments on 750 square metres qualify through the apartment-count exemption.
- Scenario B: 12 apartments on 380 square metres qualify through the land-area exemption.
- Scenario C: 6 apartments on 420 square metres satisfy both exemption conditions; satisfying either would suffice.
- Scenario D: 9 apartments on 600 square metres satisfy neither small-project exemption. Registration is required unless another statutory exemption applies.
These are applications of section 3(2)(a), not a claim that every project is exempt or that a count of plots can automatically be substituted for a count of apartments.
2. Statutory Exemptions from Registration (Section 3(2))
Section 3(2) of the Act outlines three explicit statutory exemptions where real estate projects are not required to register with MahaRERA:
1. De Minimis Projects (Section 3(2)(a))
Projects 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 8, inclusive of all phases. Either condition suffices under the statutory thresholds; the appropriate government may reduce them.
2. Pre-RERA Completion / Occupation Certificate (Section 3(2)(b))
Projects where the promoter received a valid Completion Certificate (CC) or Occupation Certificate (OC) from the local planning authority (e.g., BMC, PMC, NMMC) prior to the implementation of RERA (i.e., prior to 1st May 2017). Ongoing projects without CC/OC as of 1st May 2017 were required to register as "ongoing projects."
3. Structural Renovation & Repair (Section 3(2)(c))
Projects limited to renovation, repair, or internal structural alteration that do not involve advertising, marketing, booking, or selling any apartment, plot, or building to external purchasers. Redevelopment involving marketing, advertising, selling or new allotment does not qualify for this repair/redevelopment exemption; check the other statutory exemptions before concluding registration is mandatory.
3. Phase-Wise Registration Architecture (Explanation to Section 3)
Large township developments spanning multiple acres and extended construction schedules can be registered in independent phases under the Explanation to section 3:
- Independent Project Status: Each registered phase is treated as a distinct, standalone real estate project with its own unique MahaRERA registration number.
- Dedicated Escrow Account: Each phase must maintain a separate 70% escrow bank account for customer payments.
- Standalone Timeline: Each phase has its own legally binding completion date and progress schedules.
- Shared Common Amenities: Promoters must explicitly disclose how common infrastructure (clubhouse, central park, access roads) is shared across phases and declare committed completion deadlines for each shared amenity.
4. Application Process, Registration Validity & Extensions (Section 4, 5 & 6)
Application & Form C Registration Certificate
Promoters file an online application on the MahaRERA portal (Form A for project details, Form B for statutory declarations). Upon scrutiny of title deeds, sanctioned plans, local authority approvals, and professional certificates, MahaRERA issues a Certificate of Registration (Form C) containing the project's unique registration number and QR code.
Validity Period
Registration remains valid strictly for the operational period declared by the promoter in the application for project completion.
Statutory Extension Rules (Section 6)
If a promoter fails to complete construction within the declared timeline, registration extension may be requested under Section 6:
- Force Majeure: Extensions granted due to natural calamities (floods, earthquakes, drought, fire, cyclones) or war. MahaRERA may waive the prescribed extension fee at its discretion under Rule 7 and Order 14/2020; waiver is not automatic. Section 6 extensions are capped at an aggregate maximum of 1 year.
- Reasonable Cause: In non-force majeure situations, MahaRERA may extend registration for valid technical or administrative reasons for an aggregate period not exceeding 1 year, subject to payment of prescribed extension fees.
5. Statutory Penalties for Non-Compliance (Section 59 & Section 62)
MahaRERA enforces strict penalties to curb unauthorized pre-launches and unregistered sales:
| Violation | Responsible Party | Statutory Penalty under RERA 2016 |
|---|---|---|
| Failure to Register Project | Promoter | Fine up to 10% of estimated project cost (Section 59(1)) |
| Continued Default / Willful Breach | Promoter | Imprisonment up to 3 years, or additional fine up to 10% of project cost, or both (Section 59(2)) |
| Facilitating Unregistered Sales | Real Estate Agent | Penalty of INR 10,000 per day of continuing default, cumulatively capped at 5% of the relevant plot, apartment or building cost (Section 62) |
Under Section 10(a), agents must not facilitate a promoter’s sale in a project that requires registration but is unregistered. Check the official record for the relevant project and phase. Follow MahaRERA’s current advertising directions separately; section 10(a) does not itself prescribe QR-code specifications.
Under section 3 of RERA, assuming no other statutory exemption applies and the published small-project thresholds have not been reduced, which project requires registration before marketing or accepting bookings?
A project proposed on 600 square metres of land with 9 residential apartments
A redevelopment that involves no marketing, advertising, selling or new allotment of any apartment, plot or building
A residential project on 400 square meters of land comprising 6 apartments
A commercial project that received its final Occupation Certificate prior to 1st May 2017
If a promoter advertises or accepts bookings for an unregistered real estate project that requires registration under RERA Section 3, what is the maximum penalty prescribed under Section 59 of the Act?
A fixed penalty of INR 1,000,000 imposed on the real estate agent
A penalty extending up to 10% of the estimated cost of the real estate project
A mandatory 5-year prison sentence with no option for monetary fine
Forfeiture of all project land to the local planning authority
Under Section 6 of RERA 2016, an extension of MahaRERA project registration due to force majeure events (such as floods, earthquakes, or war) can be granted for what maximum period?
Up to 30 days only
Up to 6 months only
Up to 1 year in total
Indefinitely until the promoter requests completion certificate
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