The rehabilitation component of a redevelopment project does not need to be registered under the RERA Act, 2016, according to the Maharashtra Real Estate Appellate Tribunal (MREAT), if it does not entail marketing, promotion, or selling.

In response to a claim made by a Bandra resident in Mumbai, the tribunal ruled that the RERA (Real Estate Regulation Authority) Act's rules will not apply to rehabilitation projects untill there is a sale, public announcement, or marketing.

The MREAT made it clear that even while a project is normally registered, this does not imply that the RERA Act also applies to the project's rehabilitation component.

The sanction is often given to the full project comprising of these two parts. Due to this, a common misunderstanding exists that registration applies to the entire project, including the rehabilitation component. This is incorrect, according to the law, and the Act's requirements.

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