RERA Registration for Mixed-Use and Commercial Projects

Introduction : Beyond Residential Real Estate

In recent times, the traditional approach of having development projects which are limited to a particular purpose such as residential apartments is fast disappearing in favour of projects comprising residential apartments along with offices, retail stores, hotel and recreational facilities within the same development project. Such mixed-use developments have come to be viewed as the preferred urban planning method in the wake of rapid urbanization and changing consumer preference. The advent of mixed-use developments has also led to an expansion in the responsibility of the developer in terms of regulation. However, importantly, the RERA Act is not limited to residential projects only.

The meaning of “real estate project” in Section 2(zn), in conjunction with Section 3, is wide enough to include projects which involve the development of buildings, flats or sites or commercial spaces when the requisite statutory threshold conditions are met. Furthermore, the importance of RERA in relation to commercial or mixed-use projects is also evidenced by the trend in implementation of the law across India. In particular, evidence on the rise of mixed-use projects can be found in state-level statistics, such as, the Annual Report of the Telangana RERA (2024-25) distinguishes between residential, commercial and mixed-use projects and shows numerous registered mixed-use projects besides commercial projects.

On the other hand, regulatory growth has also led to certain issues related to non-compliance. In reality, there are instances when developers initiate commercial elements phase by phase, change the permitted designs during implementation or advertise projects without getting the project registered as per law. In integrated townships, there are cases where commercial segments are promoted as separate projects using the same infrastructure and approval for the entire project. This approach creates lack of transparency and works against the very purpose of making informed decisions by buyers and investors. Understanding this problem, the State RERA Authorities have been taking a more pro-active enforcement role. For example, in 2025, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) announced tough rules on advertisements that require all real estate advertisements whether digital or otherwise to show the RERA registration number and the QR code, location and promoters of the approved project.

Decoding RERA Registration for Mixed-Use and Commercial Projects

The biggest fallacy in connection with RERA is that it regulates only the residential housing projects. However, a careful reading of the Act shows an altogether different intent of the legislature. As per Section 3, no promoter shall advertise, market, book, sell or offer for sale any apartment, plot or building in a real estate project without first registering himself in the appropriate Real Estate Regulatory Authority, except in some exceptional cases. The Act does not make any distinction between commercial and residential development projects. It regulates real estate development in its entirety, provided that the land area to be developed exceeds 500 sq. meters or the project consists of more than eight apartments.

Hence, shopping complexes, business office complexes, integrated townships and other kinds of mixed-use development projects normally come within the purview of regulations. The purpose of the legislation is clear: buyers of commercial properties need the same level of information regarding approvals, timeline, title and financial discipline as the residential allottees. Promoters are mandated to make full disclosures, including copies of title deeds, approved plans, details of any encumbrance on the property, time frame of completion and declaration of opening a separate bank account for project fund purposes. Compliance becomes more complex in case of mixed-use development projects, which are generally done in various phases. Phase wise registration is allowed under RERA but each phase has to comply independently with the provisions of the law and get separate registration. This would ensure that the promoters are unable to bypass the regulatory framework and divide a larger integrated development into smaller unregistered units but market it as one township.

The recent ruling of the Delhi High Court confirms that RERA is indeed a progressive law that has been introduced to regulate and develop the real estate industry and at the same time, protect the interest of consumers through transparency and accountability. It is also held that failure to get registered does not mean that purchasers cannot avail the statutory remedy available under the provisions of the Act. It has been held that although non-registration carries a penalty as per Section 59, the allottees concerned can file a complaint as per Section 31. However, despite the above legislative measures, there exist certain practical issues related to the implementation. Further, for mixed use and commercial projects, RERA registration is not just an administrative process in starting up a development. It is a gateway mechanism that ensures transparency, financial discipline and protection of buyers.

Failures of Disclosure and Commercial Phases

Under the RERA Act, simple registration is meaningless without providing sufficient and accurate information about the legal, financial and physical state of the development to potential buyers. This requirement becomes particularly important in the case of mixed use and commercial projects, due to their inherent complexity. Together, sections 4 and 11 of the Real Estate (Regulation and Development) Act, 2016 provide for an all-encompassing disclosure regime. The promoter at the time of registration has to disclose the title of the land, sanctioned plans, layout plans, estimated date of completion and a declaration pertaining to the seventy per cent escrow account balance.

There is an obligation upon the promoters to update the project status, construction status, approval status, change in timelines and any other important development in relation to the respective State RERA portal periodically. In reality, developers normally register the residential project at the very first stage and delay registering the commercial blocks till a later stage. In case of phase-wise registration, though the law allows it as long as each phase acts as an independent real estate project, there arise issues due to integration of commercial parts into the whole project despite being marketed individually without disclosing all about the common facilities, infrastructure links or changed timelines for completion of construction. 

A further issue related to registered projects arises from any changes made in planning of the project such as change in commercial layout, addition of commercial space or any other amenity directly impacts the worth and utility of both residential and commercial spaces in the project. Hence, RERA mandates promoters to stick to the approved plans and allows no deviation from the same without following the legal procedure and obtaining the required permission of allottees. While trademark act provides for penalties if one does not register his project before advertising and selling it and also deals with cases when there are false claims made during the process of registration. Furthermore, Section 12 imposes civil liability in case any purchaser incurs losses due to misleading or false claims in advertisements or prospectuses. As another example, the Bihar Real Estate Regulatory Authority, where the unregistered project was in question which had already been launched for public, ruled that advertisement before registration of the project amounted to violation of Section 3, leading to the imposition of penal consequences under Section 59. The Authority clearly highlighted that premature advertisement is a negation of the purpose of RERA since it allows buyers to choose projects which have not been legally approved.

Evolution of RERA via Judicial Interpretation

In recent years, Courts have always been of the view that transparency, accountability and consumer interest should be considered above all technical objections of promoters. A landmark judgment in the RERA jurisprudence is Newtech Promoters and Developers Pvt. Ltd. v. State of Uttar Pradesh (2021)In this case, the court has upheld the constitutionality of the Act and has reiterated that the remedies available under the Act are speedy and effective means for consumer protection. It has held that such an Act is to be interpreted liberally as per its remedial nature and regardless of any contract, the promoters cannot escape from their statutory obligation.

Further, in Revanta Multistate CGHS Ltd. v. Sunny Sapen (2025), it was reiterated by the court that the provisions of law which are created under RERA cannot be avoided by adopting organizational methods or arguing about the nature of the developer. It was stated in clear terms by the court that any organization, which carries out the development and marketing of a real estate project, becomes a promoter under the Act and thus becomes bound by the provisions of law. The Delhi High Court has made it clear in its judgment that it is not possible for organizations to avoid their statutory duties by taking money from prospective customers even before the registration process starts. 

Courts are now signalling more explicitly that any sort of complexity in business cannot be relied upon by promoters to justify partial disclosures and compliance. Rather, the more complex an integrated project is, the greater is the degree of disclosure expected of the promoter. Considering all the jurisprudence taken together, RERA is now becoming an ex ante regulatory mechanism intended to address information asymmetry in real estate transactions in advance. From being a system of minimum statutory compliance, developers are now required to be in regulatory compliance where registration, disclosure and advertisements in accordance with truth are essential for legitimate development of the project.

The Future of Mixed-Use Development under RERA

Due to the rising number of mixed-use developments, consisting of residential, commercial, retail and hospitality elements, the scope of duties of promoters has been broadened considerably by the Real Estate (Regulation and Development) Act, 2016. This means that developers that perceive compliance with RERA as one of the aspects of their project management will have greater chances to secure investments from institutions, improve their reputation in the marketplace and avoid problems with regulators. In case, a project is to be developed in several phases, its development strategy needs to be coordinated with the statutory requirements, including proper segmentation of the project into separate phases and making statutory disclosures for them. The marketing team has to work in harmony with the legal and compliance teams to ensure that all of the promotional representations are consistent with the information put up on the State RERA website. Internal compliance audits, periodic analysis of statutory disclosures and updated project information can greatly diminish the chances of any enforcement actions or lawsuits from consumers.

However, there are some regulatory concerns that call for further legislative and administrative intervention. The lack of a unified approach to dealing with integrated townships, commercial developments and mixed-used developments by various State RERA authorities may create discrepancies in compliance expectations. Furthermore, the issuance of national guidelines on mixed-use and commercial developments would help promoters meet the compliance expectations in a consistent manner. Mixed-use developments are the future of infrastructure development in India. Increasing sophistication of mixed-use developments requires an appropriate compliance regime. Promoters, who ensure the compliance with all relevant regulations throughout the entire lifecycle of a project and are transparent in their business activities, will not only avoid statutory sanctions but will strengthen their market reputation and gain more trust among consumers, banks and investors. As regulation of the real estate market becomes more stringent, the issue of RERA compliance has changed from being just a legal requirement to a competitive edge for businesses. With regulators continuing to step up their enforcement efforts and the courts aligning themselves with the consumer-oriented vision of the Act, the bottom line is clear, that there can be no growth without compliance and compliance needs to be built into the core of project development.

Author: Arihant Mishra in case of any queries please contact/write back to us via email to content@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.

Endnotes

1. Real Estate (Regulation and Development) Act 2016, ss 2(zn), 3, 4, 11, 12, 31 and 59 (India Code).

   (Primary legislation governing registration, promoter obligations, disclosures, complaints and penalties under RERA.)

2. Newtech Promoters and Developers Pvt Ltd v State of Uttar Pradesh (2021) 10 SCC 750.

   (The Supreme Court upheld the constitutional validity of RERA, emphasizing that it is a beneficial legislation intended to protect consumers through speedy and effective remedies.)

3. Revanta Multi State CGHS Ltd v Sunny Sapen 2025 SCC OnLine Del ___ (Delhi High Court).

   (The Delhi High Court held that entities developing and marketing real estate projects cannot avoid their statutory obligations under RERA by relying on their organisational structure or the nature of the entity.)

   Note: Insert the final SCC citation once it is officially reported.

4. Telangana Real Estate Regulatory Authority, Annual Report 2024–2025 (Government of Telangana).

   (Official report showing registration trends for residential, commercial and mixed-use real estate projects under Telangana RERA.)

5. Tamil Nadu Real Estate Regulatory Authority (TNRERA), Circular on Mandatory Display of RERA Registration Number and QR Code in Advertisements (2025).

   (Official regulatory circular requiring every real estate advertisement to display the RERA registration number, QR code and project particulars to improve transparency.)