Adnan Siddiqui Shares Insights on Legal Risks and Buyer Remedies in Unregistered Housing Projects

Adnan Siddiqui has shared his insights on the legal and practical risks associated with booking property in housing projects that are required to be registered under the Real Estate (Regulation and Development) Act, 2016 (RERA).

Highlighting the importance of RERA registration as a transparency mechanism for homebuyers, Adnan noted that registration requires promoters to disclose critical project information on the RERA portal. “At registration, the promoter must upload the sanctioned layout, approved plans, land title, government approvals, construction timeline and promoter details onto the RERA portal,” he said.

He further explained that the regulatory framework is intended to ensure that funds collected from homebuyers are appropriately utilised for the project for which they were raised. “The requirement is designed to stop diversion of payments by buyers in one project to another project,” Adnan said.

Protection Against Unauthorised Changes

Adnan also highlighted the statutory restrictions on promoters making material changes to sanctioned project plans. “A promoter cannot alter the sanctioned plans, layout or specifications of an apartment, plot or building without the written consent of at least two-thirds of the allottees. They can also not add new structures or common areas without similar consent,” he said.

According to him, these safeguards are particularly significant for buyers who have committed substantial financial resources based on the originally sanctioned plans and specifications. He also pointed out the remedies available to buyers where possession is delayed. “A buyer who stays invested can claim interest for every month of delay until the promoter hands over possession,” he said.

Further, where a promoter undertakes material alterations without obtaining the requisite consent, buyers may have grounds to seek appropriate relief. “Material alteration without the required consent can open the door to compensation claims and, where relevant, cancellation and refund,” Adnan noted.

Risks of Booking an Unregistered Project

Addressing the consequences of marketing or selling units in projects that are required to be registered but remain unregistered, Adnan highlighted the penal provisions under RERA. “Marketing, advertising, booking or selling units in a project that should be registered but is not registered is a punishable offence by the promoter under Section 59(2) of the Act,” he said.

He emphasised that prospective homebuyers should verify the registration status of a project before making financial commitments and should undertake appropriate due diligence regarding the promoter, project approvals and disclosures available on the relevant RERA portal.

Multiple Legal Remedies May Be Available

Adnan also drew attention to the fact that RERA is not necessarily the only forum available to an aggrieved homebuyer. Buyers may, depending on the facts and circumstances, approach consumer forums in cases involving deficiency in service or unfair trade practices.

“Consumer proceedings can run alongside a RERA complaint,” he said, highlighting the importance of assessing the appropriate legal remedies based on the nature of the dispute.

Where the circumstances indicate potential criminal wrongdoing, additional action may also be warranted. “Where there are indicators of outright fraud, forged approvals or a promoter who has vanished with funds, the police or economic offences wing should also be involved,” he said.

Due Diligence on Real Estate Agents

Adnan further advised buyers to examine not only the registration status of the project but also that of the real estate agents or intermediaries facilitating the transaction.

Buyers may, where appropriate, raise complaints against the intermediary or agent in addition to proceedings against the promoter. “Agents facilitating the sale of unregistered projects are separately liable under Section 9 and can face daily penalties for continuing violations,” Siddiqui said.

Adnan’s insights were featured in a recent Business Standard article examining the risks associated with unregistered housing projects and the legal exit options available to prospective and existing homebuyers.

Read the full article in Business Standard.

Last Updated on 31 August, 2026