What is plotted development?
Also called: plotted colony, plot scheme, layout plots, residential layout
In a plotted development the developer sells serviced land, not homes: it gets a layout approved, lays roads, drains and utilities, and sells plots for buyers to build on. RERA registration is needed if the land exceeds 500 sq m or there are more than eight units.
The approval you need to see depends on the state. In Haryana, it's a licence from the Town and Country Planning department under the 1975 Act. In Telangana, an HMDA or DTCP layout approval. In Tamil Nadu, DTCP or CMDA approval. In Karnataka around Bengaluru, a BDA or BMRDA-area planning authority approval. Behind every one of them sits a land-use change or non-agricultural conversion order, because you can't sell residential plots on farmland.
Unapproved layouts are the real danger. Tamil Nadu stopped registration of plots in unapproved layouts after a Madras High Court order in 2016 and then ran a regularisation scheme, and Telangana has its own Layout Regularisation Scheme, which shows how common the problem was. A plot in an unapproved layout may not get building plan approval, water or electricity connections, or a bank loan.
In an approved layout, roads, parks and civic amenity sites are handed over to the local body, often by gift deed, before the developer can release the final plots. Some states hold back a share of the plots as security until the roads and drains are built. Ask whether that release has happened for the plot you're looking at.
Check the layout plan yourself. The plot number, dimensions and the road it faces should match what you're shown on the ground.
An HMDA-approved layout near Shadnagar, south of Hyderabad, sells 200 sq yd plots at ₹25,000 per sq yd, so ₹50 lakh before stamp duty and registration. The buyer checks the layout permit number on the HMDA site and the plot's position on the sanctioned plan.
'Farm plots' and 'managed farmland' are sold alongside plotted developments but usually sit on agricultural land with no layout approval. You can't build a house on them legally.
Questions people ask about plotted development
Is RERA registration needed for plots?
Yes, for plotted projects above 500 sq m of land or more than eight plots, including all phases. Some states set lower thresholds under their own rules.
Can I get a home loan for a plot?
Banks give plot loans for approved residential plots, usually at a lower loan-to-value ratio than for a flat, and often ask you to start construction within a set period.