M & Z Legal – Advocates & Solicitors
The problem
A developer may argue that completion of construction renders project registration unnecessary. That contention requires a precise chronology: when the project commenced, whether it was ongoing when RERA came into force, whether a completion certificate had been received and whether any statutory exemption applied.
Section 3 framework
Section 3 restricts advertising, marketing, booking, sale and offering for sale in a real estate project without registration, subject to statutory thresholds and exemptions. For ongoing projects without a completion certificate on the relevant commencement date, the transitional registration requirement is central. A project that validly falls within an exemption cannot be treated identically to one that simply failed to register.
Completion is a legal fact, not a label
Physical completion, occupation by some purchasers, a completion certificate and regulatory registration are distinct concepts. The statutory text and applicable state rules determine which event matters. A subsequent completion certificate may affect prospective duties but does not necessarily erase an earlier contravention.
Penalties and procedure
Section 59 provides consequences for contravention of Section 3, including monetary penalty and, in specified circumstances, further consequences for continued non-compliance with directions. Penalty proceedings must establish the relevant violation, the responsible promoter and compliance with notice and hearing requirements. The applicable ceiling and statutory stages should be examined rather than treating every omission as attracting the maximum sanction.
Enforcement questions
Where an Authority has already ordered registration and that direction remains unstayed, a promoter should not assume that a pending appeal permits disregard of the order. Yet proceedings to recover an existing penalty, proceedings to impose a new penalty and proceedings to secure compliance are legally distinct.
Conclusion
Completion does not automatically immunise a promoter from a historical registration breach. Liability depends on the project’s status at the legally relevant time, the statutory exemption scheme and proof of the contravention.
