Madras High Court Clarifies RERA Registration Exemption and Jurisdiction Over Unregistered Projects

Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

Date: 19.08.2026

Madras High Court Clarifies RERA Registration Exemption and Jurisdiction Over Unregistered Projects

A recent judgment by the Madras High Court in the case of Devinarayan Housing and Property Developments Private Limited vs. Manu Karan & Others has clarified crucial aspects of the Real Estate (Regulation and Development) Act, 2016 (RERA) regarding project registration and the rights of home buyers in unregistered projects. This article provides a detailed analysis of the case, its background, legal questions, and the implications for developers and home buyers.

Case Background

• Parties Involved:
  • Appellants: Devinarayan Housing and Property Developments Pvt. Ltd. (developers)
  • Respondents: Manu Karan and Archana Karan (home buyers)
• Project Details:
  • Sale and construction agreement dated 20.07.2017 for an apartment in ‘Devi Narayan’s Saisagar’, Chennai.
  • Apartment cost: Rs. 3.3 crore; buyers paid Rs. 3.06 crore.
  • Dispute arose due to non-handover of possession and refund issues.

Legal Proceedings Timeline

1. Home Buyers’ Complaints:
   • Filed for compensation and execution of sale deed before RERA authorities.
2. Developers’ Defense:
   • Claimed project was completed before RERA came into force and thus exempt from registration.
3. Adjudicating Officer’s Order:
   • Directed developers to pay compensation to buyers.
4. Appeals:
   • Developers appealed to the Tamil Nadu Real Estate Appellate Tribunal (TNREAT), which upheld the compensation order.
   • Buyers appealed against the dismissal of their complaint for sale deed registration; TNREAT ruled in their favor.
5. High Court Appeal:
   • Developers challenged TNREAT’s decisions in the Madras High Court.

Key Legal Questions Addressed

1. Does RERA Registration Apply?

• Section 3(2)(a) of RERA: Exempts projects from registration if either:
  • The land area does not exceed 500 sq. meters, or
  • The number of apartments does not exceed eight (inclusive of all phases).
• Court’s Interpretation:
  • The word “or” is to be read disjunctively, not conjunctively.
  • If a project meets either condition, it is exempt from registration.
  • In this case, although the land exceeded 500 sq. meters, only eight apartments were constructed, qualifying for exemption.

2. Can Home Buyers of Unregistered Projects Seek Relief Under RERA?

• Section 31 of RERA: Allows aggrieved persons to file complaints for violations of the Act.
• Court’s Ruling:
  • RERA authorities have jurisdiction only over registered projects.
  • Home buyers of unregistered projects cannot seek remedies under RERA.
  • Their recourse lies with civil courts or consumer forums.

Implications of the Judgment

For Developers

1. Clarity on Registration Exemptions:
   • Projects with eight or fewer apartments, regardless of land size, are exempt from RERA registration.
2. Reduced Compliance Burden:
   • Developers of small projects are not subject to RERA’s regulatory requirements.

For Home Buyers

1. Limited RERA Protection:
   • Buyers in unregistered projects cannot approach RERA authorities for grievances.
2. Alternative Remedies:
   • Must seek redress through civil courts or consumer forums.

Conclusion

The Madras High Court’s decision provides much-needed clarity on the scope of RERA’s applicability, especially for small-scale real estate projects. While it offers relief to developers of such projects, home buyers must be aware of their limited protection under RERA and consider alternative legal avenues for dispute resolution. This ruling sets a significant precedent for future disputes involving RERA registration and the rights of allottees in unregistered projects.

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Source: Madras High Court

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