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Understanding RERA Jurisdiction: Key Insights from a Recent Court Case

11 June 2026
Corporate Law

A recent ruling by the Karnataka High Court has clarified important aspects of the Real Estate (Regulation and Development) Act, 2016 (RERA) and its application to real estate projects. The case involved Provident Housing Limited and the Karnataka Real Estate Regulatory Authority (RERA). The court examined the authority's jurisdiction over real estate projects that had made significant progress before RERA came into effect. The ruling established that if a project received a partial occupancy certificate before RERA was enacted, it is not considered an 'ongoing project' under the law. This means that such projects are not subject to RERA's regulations, protecting developers from complaints related to pre-RERA agreements.

In this case, Provident Housing Limited developed an apartment complex and issued a partial occupancy certificate before RERA was implemented. An allottee later filed a complaint claiming that money was owed, but the court ruled that the project was not ongoing and therefore the complaint could not proceed under RERA. This decision emphasizes that regulatory authorities cannot exceed their jurisdiction as defined by law.

The Real Estate (Regulation and Development) Act was created to regulate the real estate sector, ensuring transparency and efficiency in transactions. It requires real estate projects to be registered, especially those that do not have completion certificates. However, projects that have received partial occupancy certificates are exempt from being classified as ongoing projects.

In summary, this ruling is significant for business owners in the real estate sector. It highlights the importance of understanding the regulatory framework and the specific conditions under which a project is considered ongoing. Developers can take comfort in knowing that if they have received partial occupancy certificates before RERA's implementation, they are not subject to its regulations, thus reducing the risk of unexpected complaints or liabilities.