Short Answer

Yes, RERA is still applicable even if the project falls below the RERA threshold after cancellations.

Detailed Explanation

As per Section 3 of the Gujarat RERA Act, 2016, the Act applies to all ongoing projects where the completion certificate has not been issued as on the commencement date of the Act. This means that once a project comes under the purview of RERA, it continues to be governed by RERA regulations regardless of any subsequent changes in the project status, such as falling below the RERA threshold due to cancellations.

Furthermore, Rule 3 of the Gujarat RERA Rules, 2017, specifies that any project which has not received a completion certificate on the date of commencement of the Act shall be registered under RERA. Therefore, even if cancellations lead to the project falling below the RERA threshold, if it was initially required to be registered under RERA, it must continue to comply with the provisions of the Act.

In practice, this means that the builder or promoter of the project must still adhere to all the obligations and requirements under RERA, including maintaining a separate RERA bank account, providing timely updates to buyers, and ensuring transparency in project execution, even if the project size decreases due to cancellations.

Real-world Scenarios

• Scenario 1: A residential project initially had 100 units and was required to be registered under RERA. However, due to cancellations, the project now has only 80 units. Despite falling below the RERA threshold, the project remains under the purview of RERA, and the builder must continue to comply with all RERA regulations.

• Scenario 2: A commercial project was registered under RERA as it met the threshold requirements. Subsequently, some buyers canceled their bookings, leading to the project size decreasing below the RERA threshold. In this case, the builder is still obligated to follow RERA guidelines.

• Scenario 3: A mixed-use development project comprising residential and commercial units was initially required to be registered under RERA. After a certain number of cancellations, the project's size falls below the RERA threshold for commercial projects. Despite this, RERA regulations are still applicable to the residential portion of the project.

References

• Section 3 of the Gujarat RERA Act, 2016

• Rule 3 of the Gujarat RERA Rules, 2017