CAPGAIN
CAPGAIN › Answers › RERA & homebuyer rights › What Should I Do If a Project Isn't RERA Registered?

What Should I Do If a Project Isn't RERA Registered?

Short answer: Don't pay anything. Selling an unregistered project (above the small-project exemption) is illegal under s.3, and you have no RERA protection if you go ahead. Report it to the state RERA authority, which can penalise the builder up to 10% of the project's cost and, for continued violation, seek imprisonment.

Law: RERA Act s.3, s.59 · Authority: MoHUA / State RERA authorities · Status: in force (effective 1 May 2016) · Checked 25 Sept 2026

What you need to know

Who this applies to: buyers, NRIs

Official / primary source: up-rera.in

The law behind it

RERA Section 3 — Prior Registration of Real Estate Projects

A builder cannot advertise, market, book or sell any flat, plot or building until the project is registered with the state RERA authority. This is the single biggest protection RERA gives buyers — an unregistered project is illegal to sell.

Section 3, Act No. 16 of 2016 · in force · source

Work out your own numbers

CAPGAIN's free calculators cover capital gains (12.5% and 20%-indexed side by side), TDS on property, stamp duty and registration by state, home-loan EMI and prepayment.

Open the CAPGAIN calculators

Related questions

Is My Project RERA Registered?What If My Possession Is Delayed?Can I Withdraw and Get a Refund With Interest?What Interest Rate Applies to Delayed Possession in Maharashtra?Can a Builder Charge Me for Extra Area?What Is Carpet Area Under RERA?

This page summarises CAPGAIN's law library entry rera-faq-unregistered-project-what-to-do. It is general information for India, not advice on your facts. Where a point says something is not yet confirmed, treat it as open and check the latest notification.