RERA Registration for Ongoing Projects: High Court Ruling

One of the most common RERA compliance questions faced by developers is:

“If my project has already been substantially completed, do I still need RERA registration?”

The answer cannot be determined simply by looking at whether some portion of the project has received a completion certificate.

A recent decision of the Calcutta High Court dated June 18, 2026, involving Fabworth Promoters Private Limited v. West Bengal Real Estate Regulatory Authority, highlights the importance of establishing actual completion before claiming that an ongoing project falls outside mandatory RERA registration requirements.

The dispute involved an allegedly unregistered project

The West Bengal Real Estate Regulatory Authority had issued a show-cause notice to Fabworth Promoters asking why action should not be taken for violation of Section 3 of RERA and why penalty under Section 59 should not be imposed.

The promoter challenged the proceedings before the Calcutta High Court.

The central argument was that the project had obtained certificates from the Kolkata Municipal Corporation and therefore should be treated as completed and outside the registration requirement.

The problem: the certificates were only partial

The documents relied upon by the promoter were dated October 24, 2016 and August 17, 2018.

However, the Court noted an important distinction.

The certificates described the buildings as partially completed and expressly contemplated obtaining a full completion certificate after completion of the work.

The promoter had not produced sufficient material demonstrating that the entire sanctioned project had actually been completed by the relevant deadline.

That distinction is extremely important for developers and landowners.

Partial completion is not necessarily full completion.

And an incomplete project may remain within the regulatory framework of RERA.

Why Section 3 matters

Section 3 of RERA establishes the requirement of prior registration for real estate projects covered by the Act.

A promoter cannot simply advertise, market, book or sell units in a project requiring registration without first obtaining the required registration.

Section 59 provides the penalty framework for non-registration.

The potential penalty can extend to 10% of the estimated cost of the real estate project.

Continued violation after an order can result in additional statutory consequences.

This is why determining RERA applicability before marketing or selling a project is a critical compliance exercise.

The Court did not accept the “partial completion” argument as sufficient

The Calcutta High Court did not finally determine the underlying penalty itself.

Instead, it allowed the promoter to place its complete case before the RERA Authority in response to the show-cause notice.

However, the Court’s reasoning provides an important compliance lesson:

A promoter cannot assume that partial completion certificates automatically remove a project from RERA.

The relevant question is whether the project legally qualifies for exemption or whether it was an ongoing project requiring registration.

Why this matters for developers

Developers often encounter projects with complicated histories:

  • construction commenced years ago;
  • multiple phases were approved;
  • partial completion certificates were issued;
  • additional floors or blocks remained;
  • approvals were obtained in stages;
  • development continued after partial completion;
  • possession was given for some units;
  • other units remained under development.

Such projects require a detailed legal and regulatory review.

A simple statement such as:

“The building already has a completion certificate.”

may not be enough.

The exact wording, date, scope and legal effect of the certificate must be examined.

What documents should a developer review?

Before claiming exemption from RERA registration, the promoter should examine:

Project documents

  • sanctioned building plan;
  • layout plan;
  • development permission;
  • commencement certificate;
  • completion certificate;
  • occupancy certificate;
  • phase-wise approvals;
  • revised plans;
  • extension permissions;
  • project agreements.

Land documents

  • title documents;
  • development agreement;
  • joint development agreement;
  • power of attorney;
  • landowner consent;
  • development rights.

RERA documents

  • previous RERA registration;
  • registration extension;
  • revocation orders;
  • exemption orders;
  • correspondence with RERA;
  • previous show-cause notices.

Sales documents

  • booking forms;
  • allotment letters;
  • agreements for sale;
  • advertisements;
  • brochures;
  • website material.

Can a landowner also become exposed?

Yes, depending on the structure of the transaction.

RERA’s definition of “promoter” is broad and can cover different participants in a real estate development structure.

This becomes particularly important in:

  • joint development agreements;
  • collaboration arrangements;
  • landowner-developer models;
  • development management agreements;
  • plotted developments; and
  • projects where different entities perform different development functions.

Therefore, simply calling one party the “landowner” and another the “developer” does not automatically resolve the RERA compliance question.

The actual rights, obligations and conduct of the parties need to be examined.

What happens if a project should have been registered but wasn’t?

Depending on the facts, the promoter may face:

  • show-cause proceedings;
  • directions to register;
  • restrictions on marketing or sale;
  • monetary penalties;
  • additional penalties for continued non-compliance;
  • proceedings relating to buyers;
  • reputational consequences; and
  • possible litigation.

Section 59 provides a penalty of up to 10% of the estimated project cost for contravention of Section 3.

This makes RERA registration a business-critical compliance issue rather than a paperwork formality.

Why professional RERA assessment matters

The real question should not be:

“Can we somehow avoid RERA registration?”

It should be:

“Does this project legally require RERA registration, and if so, what is the correct way to become compliant?”

That change in approach can save developers and landowners significant time and litigation costs.

A practical RERA compliance test

Before marketing an existing or partially completed project, ask:

1. When did construction actually commence?

2. What approvals were obtained?

3. Was a full completion certificate issued?

4. Or was only a partial completion certificate issued?

5. Was the entire sanctioned project completed?

6. Were units marketed or sold after RERA became applicable?

7. Is the project divided into phases?

8. Does any exemption actually apply?

9. Has the State RERA issued any specific notification?

10. Is there documentary evidence supporting the proposed exemption?

If these questions cannot be answered clearly, a RERA applicability review should be undertaken before continuing sales or marketing.

Final takeaway

The June 2026 Calcutta High Court decision provides a valuable compliance warning:

A partial completion certificate should not automatically be treated as a blanket exemption from RERA registration.

For developers, builders and landowners, the safest approach is to establish the project’s legal status through documentation before advertising, booking or selling.

RERA compliance should be established before a regulatory notice arrives—not after.

RERAconsultants.com assists builders, developers, landowners and collaboration/JDA parties with RERA registration, applicability assessment and compliance support.

Frequently Asked Questions

Does a completion certificate automatically exempt a project from RERA?
Not necessarily. The scope, date and legal nature of the certificate must be examined along with the status of the entire project.

What is the penalty for not registering a project under RERA?
Section 59 provides for a penalty that may extend to 10% of the estimated cost of the real estate project, subject to the provisions of the Act.

Can a partially completed project require RERA registration?
Yes, depending on when it was ongoing, the applicable State framework, completion status and available exemptions.

Can a landowner be treated as a promoter under RERA?
Depending on the development structure and the party’s role, RERA’s broad promoter definition can bring landowners and other participants within its regulatory framework.

Legal Disclaimer: This article is for general information and compliance awareness. It does not constitute legal advice. The applicability of RERA to a specific project depends on its facts, approvals, completion status, State rules and applicable notifications.