{"id":13798,"date":"2020-07-28T14:34:24","date_gmt":"2020-07-28T09:04:24","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=13798"},"modified":"2020-07-28T14:46:48","modified_gmt":"2020-07-28T09:16:48","slug":"phase-wise-rera-registration-online","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/phase-wise-rera-registration-online\/","title":{"rendered":"What is Phase-wise RERA Registration?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The project life cycle constitutes various phases. It begins with approvals for commencement of a project and <a href=\"https:\/\/corpbiz.io\/rera-registration\"><strong>RERA registration<\/strong><\/a> with the regulating Authority.  Therefore, this becomes essential to understand and resolve conflicts. To avoid controversies that might arise requires a phase-wise RERA registration.  <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/phase-wise-rera-registration-online\/#Phase-wise_RERA_Registration\" >Phase-wise RERA\nRegistration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/phase-wise-rera-registration-online\/#Points_kept_in_mind_for_Phase-wise_RERA_registration\" >Points kept in mind for Phase-wise RERA registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/phase-wise-rera-registration-online\/#Projects_not_to_be_registered_under_RERA\" >Projects not to be\nregistered under RERA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/phase-wise-rera-registration-online\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Phase-wise_RERA_Registration\"><\/span>Phase-wise RERA\nRegistration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Section 3 of the\nRERA Act says about the requirement of RERA registration. The section states\nthe following:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The promoter cannot advertise, market, book, sell or offer for sale, or\ninvite persons to purchase in any manner any plot, apartment or building, in\nthe real estate project, in any planning area, without registering in the real\nestate project with a Real Estate Regulatory Authority established under the\nAct.<\/li><li>Provided that the projects which are ongoing on the date of commencement\nof this Act and for which the completion certificate has not been issued, the\npromoter must make an application to the Authority for registration of the said\nproject within three months commencement of this Act. <\/li><\/ul>\n\n\n\n<p>The reading of the section suggests that every ongoing project in the planning area is required to be registered within 3 months of commencement of this Act. But this must be organized in harmony with the section that says that only those ongoing projects require registration, which has started advertisement\/marketing\/booking by any means prior to introducing RERA. The decision about registering the project in multiple phases or is a critical matter.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Points_kept_in_mind_for_Phase-wise_RERA_registration\"><\/span>Points kept in mind for Phase-wise RERA registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"620\" height=\"552\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-131.png\" alt=\"Phase-wise RERA registration\" class=\"wp-image-13799\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-131.png 620w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-131-300x267.png 300w\" sizes=\"(max-width: 620px) 100vw, 620px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>The essential factors which are kept in mind while evaluating the optimum option are listed below:<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Amount of Penalty<\/h3>\n\n\n\n<p>Generally,\nthe penalty gets levied on the estimated cost of the project. In the case of phase-wise\nregistration, the estimated cost will get limited to the area registered as\nprojects, i.e., phase-wise RERA registration. In case of default, the\nobligations of any one phase, the entire project will not bear the cost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Additions or\nAlterations in Plan<\/h3>\n\n\n\n<p>The Act\nrequires the previous written consent of at least two-thirds of the allottees\nin case of any alterations or additions (other than minor additions or\nalterations as defined under Act) in the project plans and building specifications.\nIn the case of phase-wise RERA registration, the said requirement can be complied\nwith more rapidly as the requirement of two-thirds of allottees will be limited\nto the phase rather than the project.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Timeline to Complete\nthe Project<\/h3>\n\n\n\n<p>The project\ncompletion requires to be provided at the time of registration of a project. In\ncase of a single registration of the entire project, any internal delay in any completion\nof different blocks or towers can be adjusted within the timeline of project completion,\nwhich is usually decided to keep certain contingencies in mind. In the case of\nphase-wise registration, the promoter is exposed to delays on multiple phases.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Project Accounting<\/h3>\n\n\n\n<p>If the company\nmaintains a single set of books of accounts of the entire project, the direct costs\nand the common expenses need to be bifurcated amongst all the phases by taking\na proper basis in case different registrations are taken for each phase.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Marketability of the Phases\nvis-a-vis Entire Project<\/h3>\n\n\n\n<p>Marketing\nstrategies would require restructuring in phase-wise RERA registration. The\npromoter needs to display the separate RERA number for each phase on banners\nand hoardings, the document and plans for advertisement, social media\nmarketing, etc.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/guide-on-rera-registration-for-real-estate-agents\/\">Guide on RERA Registration for Real Estate Agents\n<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Formation of\nAssociation of Allottees Phase-Wise RERA registration<\/h3>\n\n\n\n<p>The Act\nrequires the formation of an association of allottees and transfer of common\nareas within 3 months of the issue of occupancy certificate. The requirement to\ncreate an association of allottees would be triggered on completion of each\nphase separately, thereby increasing the compliance burden and giving up the\ncontrol over the part phase of the project at an early stage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The cost factor, Cash\nFlow and Project Finance Requirement<\/h3>\n\n\n\n<p>In case\nof phase-wise RERA registration, a separate bank account needs to be maintained\nfor each project (i.e., phase), as per the provisions. Once a project gets\ncompleted, the promoter can take control of a separate bank account and withdraw\nthe balance amount from the same, once the phase is complete. However, in case\nof a single registration for the entire project, there is a possibility that the\nfunds may get blocked pending project completion, especially in scenarios where\nthe project margin is more than 30%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Implication under\nIncome Tax, GST, etc.<\/h3>\n\n\n\n<p>The concept of registering a project in phases is only limited to RERA. For all other statues, the entire project is offered for taxation, and eligibility of benefits may have to be calculated considering the entire project and not phase-wise. However, now that <strong>RERA<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Real_Estate_(Regulation_and_Development)_Act,_2016\"><strong>[1]<\/strong><\/a><\/sup> is considering each phase as a separate real estate project, one may think of taking the same stand in other statues, if found beneficial.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Projects_not_to_be_registered_under_RERA\"><\/span>Projects not to be\nregistered under RERA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The projects which\nare not required to be registered under RERA have been specified under Section\n3 are as below: &nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul><li>When an area of land proposed to\nbe developed does not exceed 500 square meters, or the number of apartments proposed\nto be developed does not exceed eight inclusive of all phases. Both the\nconditions would have to be satisfied if one decides not to register the\nproject<\/li><li>Where the promoter has received\ncompletion certificate for a real estate project before commencement of this\nAct (01st May 2016)<\/li><li>Renovation or repair or\nre-development which does not involve marketing, advertising selling or new\nallotment of any apartment, plot or building under the real estate project<\/li><\/ul>\n\n\n\n<p>However,\nsome of the states have taken the view that even unregistered projects will be\nsubjected to penal actions under RERA if found requisite for consumer\nprotection, which is the core objective behind the implementation of RERA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It can\nbe construed that the requirement of registration of the project in the\nplanning area will be triggered only when the entity wants to\nadvertise\/market\/book\/sell\/offer for sale\/receive advance money\/invite\ncustomers by any means. So, the section covers the entire gamut of activities. <\/p>\n\n\n\n<p>However, it may be important to note some key actions like financing either in the form of a bank loan or other means and taking approvals required for the project&#8217;s commencement from competent authorities, which may be taken before RERA registration.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/unfair-practice-in-rera-misleading-real-estate-advertisements\/\">\nUnfair practice in RERA: Misleading Real Estate Advertisements\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The project life cycle constitutes various phases. It begins with approvals for commencement of a project and RERA registration with the regulating Authority. Therefore, this becomes essential to understand and resolve conflicts. To avoid controversies that might arise requires a phase-wise RERA registration. Phase-wise RERA Registration Section 3 of the RERA Act says about the [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":13807,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[182],"tags":[807],"acf":{"service_id":"102"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":7639,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13798"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=13798"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13798\/revisions"}],"predecessor-version":[{"id":13816,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13798\/revisions\/13816"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/13807"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=13798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=13798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=13798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}