Gujarat ruling clarifies RERA scope for older projects

A recent decision by a real estate appellate authority in Gujarat has drawn a clearer boundary around the applicability of the Real Estate (Regulation and Development) Act, 2016, particularly for projects completed before the law came into force. The ruling is expected to influence how disputes involving older housing developments are addressed across India’s urban markets. 

At the centre of the case was a residential unit in Ahmedabad, where a homebuyer sought relief through the state’s regulatory authority despite the project phase having received completion certification before May 2017, when the law became operational. While the initial authority had directed the developer to formalise ownership transfer, the appellate body overturned this direction, citing limits to jurisdiction under the Act. The tribunal’s interpretation hinges on the legal distinction between retroactive and retrospective application. It clarified that the law applies to ongoing developments that had not secured completion approvals at the time of its enforcement, but does not extend to phases already certified as complete by local authorities. This interpretation of RERA applicability reinforces the idea that each phase within a larger project must be treated independently for regulatory purposes.

Legal experts suggest that the ruling could have wide-ranging implications for homebuyers and developers alike. For buyers in pre-2017 projects, avenues for dispute resolution may shift back to civil courts or consumer forums rather than specialised real estate regulators. This could potentially lengthen timelines for grievance redressal, particularly in complex cases involving contractual or financial disputes. The case also highlights the layered nature of real estate transactions in India, where projects are often developed in stages over several years. Urban planners note that such phased construction models are common in rapidly expanding cities, allowing developers to align supply with market demand. However, this structure can create ambiguity when regulatory frameworks evolve mid-cycle, as seen in the current interpretation of RERA applicability.

From a governance perspective, the ruling underscores the importance of clear legal frameworks in maintaining trust in housing markets. RERA was introduced to improve transparency, accountability, and timely delivery in real estate—key factors in building more equitable and citizen-centric urban environments. While the law has strengthened protections for buyers in ongoing projects, gaps remain for legacy developments completed before its introduction. There are also broader implications for urban resilience and planning. Reliable regulatory oversight is essential not only for protecting buyers but also for ensuring that developments meet safety, environmental, and infrastructure standards.

When older projects fall outside the purview of modern regulations, it raises questions about consistency in urban quality and long-term sustainability. Going forward, experts suggest that policymakers may need to explore complementary mechanisms to address disputes linked to pre-RERA developments. As Indian cities continue to expand, aligning legacy housing stock with current governance standards will be critical to fostering inclusive and well-regulated urban growth.

Gujarat ruling clarifies RERA scope for older projects