Kerala High Court To Examine K-RERA Order Requiring Registration Of Certain Projects Under 500 Sq. Metres

The Kerala High Court recently (June 22) admitted a writ petition challenging a Kerala Real Estate Regulatory Authority (K-RERA) order requiring registration of projects built on less than 500 square metres of land if they comprise more than eight units.

The matter came up before Justice Gopinath P. The court admitted the petition and granted K-RERA time to obtain instructions.

Greha Homes Pvt. Ltd., the petitioner, contends that its "Greha Five Elements" project, comprising 14 apartment units on 445 square metres of land at Kanayannoor Village in Elamkulam, Ernakulam, falls outside K-RERA's jurisdiction.

According to the builder, Section 3(2)(a) of the Real Estate (Regulation and Development) Act, 2016 exempts projects situated on land measuring less than 500 square metres from mandatory registration irrespective of the number of units.

To consider the contentions raised on merits, the court directed that adjudication of any complaint against the petitioner concerning the project be deferred by 10 days.

The court observed, "In order to consider the contentions raised on merits, I direct that the adjudication of any complaint against the petitioner in respect of the project in question shall be deferred by a period of 10 days."

According to the plea, Greha Homes launched the "Greha Five Elements" project in 2022 and allotted all 14 apartments before construction was completed.

It contends that the project, built on 445 square metres of land, did not require RERA registration when construction began.

The builder argues that K-RERA's May 18, 2023 order effectively rewrites the statutory exemption by requiring registration even where one of the exemption criteria is met.

According to Greha Homes, Section 3(2)(a) of the parent Act provides that "no registration of the real estate project shall be required" where the area proposed to be developed does not exceed 500 square metres or the number of apartments proposed to be developed does not exceed eight. It argues that the use of the word "or" means satisfying either condition is sufficient to exempt a project from registration.

The builder has also argued that K-RERA lacked the authority to alter the exemption threshold.

The builder has also argued that K-RERA had no authority to alter the exemption threshold. According to Greha Homes, only the appropriate Government can reduce that threshold under the Act, and K-RERA could not do so through its May 18, 2023 order.

To support this argument, Greha Homes has relied on the Madras High Court's decision in Devinarayanan Housing and Property v. Manu Karan, which was later upheld by the Supreme Court.

According to the builder, those decisions held that the word "or" in the exemption provision must be interpreted disjunctively, making fulfilment of either exemption criterion sufficient to exempt a project from mandatory registration.

On that basis, the builder has submitted that K-RERA's May 18, 2023 order is "illegal, arbitrary, and ultra vires the parent statute."

The matter has been posted for further hearing on July 2.

For Petitioner (Greha Homes Pvt. Ltd.): Advocates P.V. Uttara and David Varghese Thomas.

For Respondents (Kerala Real Estate Regulatory Authority and its Secretary): Standing Counsel S. Kurup