Society Redevelopment and RERA: When Mumbai Sale Flats Need Registration Under Section 3
Section 3(2)(c) of the RERA Act exempts renovation, repair or re-development only where there is no marketing, advertising, selling or new allotment. Why sale flats in a Mumbai redevelopment fall outside that exemption, who counts as promoter under Section 2(zk), and the checks to run before booking.
The hoarding outside an old Mumbai housing society building often says two things at once. To the members, it says redevelopment: a new tower, bigger flats, a temporary rent cheque. To everyone else walking past, it says something different: new flats for sale. Those two messages fall on opposite sides of a single clause in the Real Estate (Regulation and Development) Act, 2016, and which side a project sits on decides whether the buyer of a sale flat has a RERA registration to lean on.
This explainer reads Section 3 of the Act closely, sets out when a redevelopment project needs registration and when it does not, and gives Mumbai buyers a short list of checks before they pay for a flat in a redeveloped building.
The short answer. Section 3(1) bars a promoter from advertising, marketing, booking, selling or inviting buyers for any apartment in a real estate project in a planning area without registering it with the Real Estate Regulatory Authority. Section 3(2)(c) exempts renovation, repair or re-development only where it does not involve marketing, advertising, selling or new allotment of any apartment. So a redevelopment that offers flats to new buyers does not fit that exemption. Separately, projects on land up to 500 square metres or with up to eight apartments across all phases are exempt under Section 3(2)(a), unless the government lowers that threshold. The trade-off: a small or members-only project may move faster without registration, but a buyer of a flat in it does not get the registration-linked disclosures that the Act requires of registered projects.
What does Section 3 actually require?
Registration before any selling. In the text of the Act as published by the Telangana regulator, Section 3(1) says no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building in any real estate project or part of it, in any planning area, without registering the project with the Real Estate Regulatory Authority established under the Act.
The section then carves out three exemptions in sub-section (2). Clause (a) covers projects where the land proposed to be developed does not exceed five hundred square metres, or the number of apartments proposed does not exceed eight, inclusive of all phases. Clause (b) covers projects that received a completion certificate before the Act commenced. Clause (c) covers renovation, repair or re-development which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building.
An Explanation adds that where a project is developed in phases, every phase is a stand alone real estate project, and the promoter must register each phase separately.
When is a Mumbai redevelopment exempt from registration?
When nothing is being sold or newly allotted. Clause (c) is written narrowly. The exemption applies to re-development that does not involve marketing, advertising, selling or new allotment. A redevelopment in which the existing members simply receive new flats in place of their old ones, and no flat is marketed or allotted to anyone new, fits the words of the clause.
The moment the project markets or sells flats to outside buyers, the condition in clause (c) is not met, and the general rule in Section 3(1) applies to the selling: no advertising, marketing, booking or sale without registration. For a buyer looking at a sale flat in a redeveloped building, that is the key point. The flat you are being offered is, by definition, part of a project that is marketing and selling.
Two other exemptions still need checking. If the land is up to 500 square metres or the project has up to eight apartments including all phases, clause (a) may apply, though the proviso allows the appropriate Government to reduce those thresholds. And if the project is in phases, each phase is treated as its own project for registration.
| Situation | Registration under Section 3 | Clause in the Act |
|---|---|---|
| Repair or renovation with no new sale or allotment | Not required | Section 3(2)(c) |
| Redevelopment for existing members only, with no marketing or new allotment | Not required | Section 3(2)(c) |
| Redevelopment that markets or sells flats to new buyers | The clause (c) exemption does not fit; Section 3(1) governs the selling | Section 3(1), Section 3(2)(c) |
| Land up to 500 square metres or up to eight apartments, all phases | Not required, unless the government lowers the threshold | Section 3(2)(a) and proviso |
| Project built in phases | Each phase registered separately | Explanation to Section 3 |
Who counts as the promoter in a society redevelopment?
Possibly more than one party. The definition of promoter in Section 2(zk) is broad. It includes a person who constructs a building of apartments, or converts an existing building into apartments, for selling some or all of them. It specifically includes a primary co-operative housing society which constructs apartments or buildings for its members or in respect of the allottees of such apartments. It also covers anyone who acts as a builder, developer or contractor, or claims to act as the holder of a power of attorney from the owner of the land.
The Explanation to Section 2(zk) matters most for buyers. Where the person who constructs the building and the person who sells the apartments are different, both are deemed to be promoters and are jointly liable for the functions and responsibilities under the Act and its rules and regulations. In a redevelopment, the party that builds and the party that owns the land or sells the flats may not be the same. Who exactly is liable for what is a question for your lawyer, but the Act's starting point is that construction and sale do not let responsibility fall between two parties.
What does a buyer gain from a registered project?
Disclosure and enforceable duties. Registration brings the project under the rest of the Act. To give three examples from the text: Section 4(2)(l)(D) requires the promoter to keep seventy per cent of amounts realised from allottees in a separate account for construction and land cost; Section 11(1) requires the promoter to keep the project web page updated quarterly with bookings, approvals and construction status; and Section 11(2) requires advertisements to carry the Authority's website address and the registration number.
For a buyer of a sale flat, that last requirement is a practical test. A redevelopment advertisement that offers flats for sale but shows no registration number is worth questioning before any money changes hands. Our guide on what RERA requires of property advertisements explains what a compliant advertisement should show.
What should a Mumbai buyer check before booking a sale flat?
Start with the registration, then work backwards to the paperwork. Each step below follows from the sections discussed above.
- Ask for the RERA registration number of the phase that contains your flat, and search it on MahaRERA's website before paying anything.
- Confirm that the registered phase matches the building and wing named in your booking form.
- Check whether the advertisement or brochure shows the registration number and the Authority's website, as Section 11(2) requires.
- Ask who the promoter or promoters are for the sale component, and whether the society is named alongside the developer.
- If you are told the project is exempt, ask which clause of Section 3(2) is relied on and see the land area and apartment count for yourself.
- Read the agreement for sale for the carpet area, possession date and the party that signs as promoter.
- Keep copies of every advertisement, brochure and message offering the flat, in case a complaint is needed later.
Our earlier explainer on how to verify a MahaRERA project registration walks through reading the registration page itself.
What if I am an existing member, not a buyer?
Your position is different, and the exemption may well apply to your flat. Clause (c) protects ordinary redevelopment for existing members from registration, provided nothing is marketed or newly allotted. If the same project also sells flats to outsiders, the sale component is where Section 3(1) bites. Members should still read the development agreement carefully, since that is the document that sets out their own terms with the developer.
Members and buyers share one interest: a project that is honest about its registration status is easier to track. If the developer says the project is registered, the quarterly updates under Section 11(1) let both groups see bookings and construction progress.
Does the Act treat every state the same way?
The central text sets the floor, and the thresholds can move. The proviso to Section 3(2)(a) allows the appropriate Government to reduce the 500 square metre and eight apartment limits for exemption. Rules, regulations and forms are also made at the state level. That is why the final check for any Mumbai project is the state regulator's own record of registration, not a general reading of the Act.
The Act's design is simple: if flats are being sold to the public, the project should be on the regulator's register. A buyer who confirms that before paying the booking amount has used the most basic protection RERA offers.
Frequently asked questions
Does a society redevelopment in Mumbai need RERA registration?
Section 3(2)(c) of the RERA Act exempts renovation, repair or re-development that does not involve marketing, advertising, selling or new allotment of any apartment. If the project markets or sells flats to new buyers, that exemption does not fit, and Section 3(1) requires registration before any selling.
What is the small project exemption under RERA Section 3?
Section 3(2)(a) says no registration is required where the land proposed to be developed does not exceed 500 square metres or the apartments proposed do not exceed eight, inclusive of all phases. The proviso lets the appropriate Government reduce these thresholds, so check the state regulator's position for a specific project.
Who is the promoter in a redevelopment project under RERA?
Section 2(zk) covers builders, developers and anyone acting under a power of attorney from the landowner, and includes a primary co-operative housing society that constructs apartments. Where the person who constructs and the person who sells are different, both are deemed promoters and are jointly liable under the Act.
How can a buyer check that a redevelopment sale flat is RERA registered?
Ask for the registration number of the phase containing your flat and search it on MahaRERA's website before paying. Section 11(2) requires advertisements to show the registration number and the Authority's website, and each phase must be registered separately under the Explanation to Section 3.
Last updated 2026-10-25. PropNewz Team.
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