Does RERA Apply to Agricultural Land Sales?

In India's dynamic real estate landscape, landowners often grapple with regulatory compliance when selling property. A common concern arises around agricultural land: does simply selling it trigger obligations under the Real Estate (Regulation and Development) Act, 2016 (RERA)? This question intersects with state-specific laws, such as who qualifies as an 'agriculturalist' under the Gujarat Land Laws, which govern eligibility to hold or transfer such land. While Gujarat's tenancy and agricultural acts define an agriculturalist typically as someone primarily engaged in agriculture with income thresholds and land holdings limits, the sale process itself prompts scrutiny under national laws like RERA. This post delves into whether sales of agricultural land without development fall under RERA, drawing from judicial interpretations and statutory analysis.

Understanding RERA's Scope

RERA was enacted to bring transparency, accountability, and efficiency to the real estate sector, primarily targeting projects involving construction or development. The Act's definition of a 'real estate project' in Section 2(zn) is pivotal: the development of a building or a building consisting of apartments, or converting an existing building or a part thereof into apartments, or the development of land into plots or apartments, as the case may be, for the purpose of selling all or some of the said apartments or plots or building... Mohammed Zain Khan VS Emnoy Properties India - 2024 0 Supreme(Bom) 1089.

This definition underscores that RERA governs activities involving development, not mere land transfers. Sale of agricultural land that does not involve any development or sanctioned project activity is not governed by the RERA Act.Mohammed Zain Khan VS Emnoy Properties India - 2024 0 Supreme(Bom) 1089

Key Judicial Insights on Exclusion

Courts have consistently held that projects incapable of registration under RERA fall outside its ambit. For instance, in cases involving agricultural land without development permissions, complaints under Section 31 of RERA are not maintainable. The judgment clarifies: projects which are incapable of being registered—such as agricultural land with no development permissions—are outside the scope of RERA Mohammed Zain Khan VS Emnoy Properties India - 2024 0 Supreme(Bom) 1089.

This aligns with legislative intent to regulate development and promotion of the real estate sector, ensuring sale of properties in an efficient and transparent manner, and protecting consumer interests in projects involving developmentExperion Developers Pvt. Ltd. VS Sushma Ashok Shiroor - 2022 4 Supreme 482. Bare agricultural land sales lack these elements, resembling traditional land transactions rather than regulated real estate ventures.

When Does Sale of Agricultural Land Escape RERA?

Merely transferring ownership of agricultural land, especially without infrastructure, layouts, or conversion into plots, does not qualify as a real estate project. Several precedents reinforce this:

• No development activity: Merely selling land, especially agricultural land without any development or construction, does not automatically qualify as a real estate project under RERA. SUMIT KUMAR DAGA vs CHHATTISGARH REAL ESTATE REGULATORY AUTHORITY - ChhattisgarhSANSADIYA ADHIKARI WELFARE SOCIETY vs UTPAL KUMAR TRIPATHI & ORS - DelhiHAJA NAJUMUDEEN.M.K vs THE CHAIRPERSON - Madras
• Promoter definition: A promoter under RERA is someone who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling M/S REVANTA MULTISTATE CGHS LTD Vs SUNNY SAPEN - 2025 Supreme(Online)(Del) 5055 - 2025 Supreme(Online)(Del) 5055. Simply owning or selling without development does not fit. POOJA CONSTRUCTIONS vs The SECRETARY KERALA URANMA DEVASWOM BOARD - KeralaPOOJA CONSTRUCTIONS vs THE SECRETARY - Kerala
• Intent matters: If there's no intention or activity to develop into plots or apartments, registration is not required. SUMIT KUMAR DAGA vs CHHATTISGARH REAL ESTATE REGULATORY AUTHORITY - Chhattisgarh

In one analysis, The Real Estate Projects involves various stages of development and the same cannot be circumvented into construction alone thus the mode of development is immaterial once the land earmarked for development is found to be amenable under the RERA. S JAYALAKSHMI vs S RAMAR - 2024 Supreme(Online)(Mad) 74871 - 2024 Supreme(Online)(Mad) 74871. However, agricultural land without such earmarking or permissions remains exempt.

Exceptions: When RERA May Apply

While pure agricultural land sales are typically outside RERA, certain scenarios trigger applicability:- Sanctioned development: If the land is part of a project with approved plans, layout approvals, or non-agricultural conversion, RERA registration is mandatory. Mohammed Zain Khan VS Emnoy Properties India - 2024 0 Supreme(Bom) 1089- Future development intent: Land sold with plans for plotting or apartments, post-permissions, requires compliance once the project commences. SANSADIYA ADHIKARI WELFARE SOCIETY vs UTPAL KUMAR TRIPATHI & ORS - Delhi- Plotting without registration: Selling plots without RERA registration in planning areas is penalized, as seen in cases where respondents are selling the plots without getting its registered before the Ld. RERA SHANKAR LAL DAYALANI vs STATE OF CHHATTISGARH - 2024 Supreme(Online)(CHH) 13050 - 2024 Supreme(Online)(CHH) 13050.

Additionally, external development works like roads may factor in, but only if tied to a registrable project: Thus, the development works does not restrict with reference to the internal development works, but covers the external development works also. M/S.SARE SHELTERS PROJECT PV vs SARE SQUIRES - 2021 Supreme(Online)(MAD) 6499 - 2021 Supreme(Online)(MAD) 6499

Implications for Stakeholders

For Sellers and Landowners

Sellers of undeveloped agricultural land can generally proceed without RERA registration, but must disclose the land's status. In Gujarat, ensuring buyer eligibility as an agriculturalist under local laws (e.g., Gujarat Tenancy and Agricultural Lands Act) is crucial alongside RERA considerations.

For Buyers

Verify if the transaction involves any development. Relying on RERA remedies for pure land sales may fail, as courts dismiss such complaints.

For Developers

Obtain permissions early. Undeveloped land intended for projects must be registered to avoid penalties.

Recommendations:- Clarify transactions: Sellers should state explicitly that no development is involved, exempting from RERA. Mohammed Zain Khan VS Emnoy Properties India - 2024 0 Supreme(Bom) 1089- Due diligence: Buyers check for project registration or development sanctions.- Compliance for projects: Developers secure NA permissions and register promptly.

Conclusion and Key Takeaways

In summary, the sale of agricultural land without development or sanctioned activities is outside RERA's purview, focusing instead on developmental projects. This distinction protects simple land deals while regulating complex real estate ventures. However, evolving judicial views and state laws like Gujarat's agriculturalist criteria add layers—always consult a legal expert for case-specific advice.

Key Takeaways:- RERA targets development, not bare land sales. Mohammed Zain Khan VS Emnoy Properties India - 2024 0 Supreme(Bom) 1089- Agricultural land without permissions is exempt. Experion Developers Pvt. Ltd. VS Sushma Ashok Shiroor - 2022 4 Supreme 482- Exceptions apply for approved projects. SUMIT KUMAR DAGA vs CHHATTISGARH REAL ESTATE REGULATORY AUTHORITY - Chhattisgarh- Verify intent and permissions to avoid disputes.

Disclaimer: This article provides general information based on available judicial and statutory insights. It is not legal advice. Consult a qualified lawyer for personalized guidance.

References:1. Mohammed Zain Khan VS Emnoy Properties India - 2024 0 Supreme(Bom) 10892. Experion Developers Pvt. Ltd. VS Sushma Ashok Shiroor - 2022 4 Supreme 4823. S JAYALAKSHMI vs S RAMAR - 2024 Supreme(Online)(Mad) 74871 - 2024 Supreme(Online)(Mad) 748714. M/S REVANTA MULTISTATE CGHS LTD Vs SUNNY SAPEN - 2025 Supreme(Online)(Del) 5055 - 2025 Supreme(Online)(Del) 50555. M/S.SARE SHELTERS PROJECT PV vs SARE SQUIRES - 2021 Supreme(Online)(MAD) 6499 - 2021 Supreme(Online)(MAD) 64996. SHANKAR LAL DAYALANI vs STATE OF CHHATTISGARH - 2024 Supreme(Online)(CHH) 13050 - 2024 Supreme(Online)(CHH) 130507. SUMIT KUMAR DAGA vs CHHATTISGARH REAL ESTATE REGULATORY AUTHORITY - ChhattisgarhSANSADIYA ADHIKARI WELFARE SOCIETY vs UTPAL KUMAR TRIPATHI & ORS - DelhiHAJA NAJUMUDEEN.M.K vs THE CHAIRPERSON - MadrasPOOJA CONSTRUCTIONS vs The SECRETARY KERALA URANMA DEVASWOM BOARD - KeralaPOOJA CONSTRUCTIONS vs THE SECRETARY - Kerala