Blossom Conbuild Private Limited v. Emaar India Limited

o o o INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAoo AToCHANDIGARHoo o o 129o o o o o o RERA-APPL-54-2025o(O&M)o o o o o o o Reservedoon:o30.07.2025o o o o o o o Pronouncedoon:o30.10.2025o o BlossomoConbuildoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-1oo o o o o RERA-APPL-55-2025o(O&M)o o InitiaoSolutionsoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-2oo o o o o RERA-APPL-56-2025o(O&M)o o M/soPadampuroNirmanoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-3oo o o o o RERA-APPL-57-2025o(O&M)o o ChirauoPropBuildoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-4oo o o o o RERA-APPL-58-2025o(O&M)o o BlossomoConbuildoPrivateoLimitedo ...Appellanto o o o Versuso RERA-APPL-54-2025oandootheroo -2-o o o o EMAARoIndiaoLimitedo ...Respondento o 129-5oo o o o o RERA-APPL-59-2025o(O&M)o o ZackoEstatesoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-6oo o o o o RERA-APPL-60-2025o(O&M)o o PSoTechnosystemoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-7oo o o o o RERA-APPL-61-2025o(O&M)o o ChirauoPropbuildoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-8oo o o o o RERA-APPL-62-2025o(O&M)o o PSoTechnosystemoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-9oo o o o o RERA-APPL-63-2025o(O&M)o o PSoTechnosystemoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo RERA-APPL-54-2025oandootheroo -3-o o o ...Respondento o 129-10o o o o o RERA-APPL-64-2025o(O&M)o o PSoTechnosystemoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-11o o o o o RERA-APPL-65-2025o(O&M)o o ChirauoPropbuildoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-12o o o o o RERA-APPL-66-2025o(O&M)o o InitiaoSolutionsoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-13o o o o o RERA-APPL-67-2025o(O&M)o o ChirauoPropbuildoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-14o o o o o RERA-APPL-68-2025o(O&M)o o InitiaoSolutionsoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o RERA-APPL-54-2025oandootheroo -4-o o o 129-15o o o o o RERA-APPL-69-2025o(O&M)o o PSoTechnosystemoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-16o o o o o RERA-APPL-70-2025o(O&M)o o M/soPadampuroNirmanoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-17o o o o o RERA-APPL-71-2025o(O&M)o o PSoTechnosystemoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-18o o o o o RERA-APPL-72-2025o(O&M)o o InitiaoSolutionsoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-19o o o o o RERA-APPL-73-2025o(O&M)o o PSoTechnosystemoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-20o o o o o RERA-APPL-74-2025o(O&M)o o RERA-APPL-54-2025oandootheroo -5-o o o PSoTechnosystemoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-21o o o o o RERA-APPL-75-2025o(O&M)o o InitiaoSolutionsoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-22o o o o o RERA-APPL-76-2025o(O&M)o o ChirauoPropBuildoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-23o o o o o RERA-APPL-77-2025o(O&M)o o BlossomoConbuildoPrivateoLimitedo ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-24o o o o o RERA-APPL-78-2025o(O&M)o o PSoTechnosystemoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-25o o o o o RERA-APPL-79-2025o(O&M)o o InitiaoSolutionsoPvt.oLtd.o ...Appellanto RERA-APPL-54-2025oandootheroo -6-o o o o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-26o o o o o RERA-APPL-80-2025o(O&M)o o InitiaoSolutionsoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-27o o o o o RERA-APPL-81-2025o(O&M)o o InitiaoSolutionsoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-28o o o o o RERA-APPL-82-2025o(O&M)o o InitiaoSolutionsoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-29o o o o o RERA-APPL-83-2025o(O&M)o o ZackoEstatesoPvt.oLtd.o ...Appellanto o o o Versuso o EMAARoIndiaoLimitedo ...Respondento o 129-30o o o o o RERA-APPL-84-2025o(O&M)o o InitiaoSolutionsoPvt.oLtd.o ...Appellanto o o o Versuso o RERA-APPL-54-2025oandootheroo -7-o o o EMAARoIndiaoLimitedo ...Respondento o o CORAM:o HON'BLEoMR.oJUSTICEoVIKASoSURIo o Present:o Mr.oAmitoJhanji,oSenioroAdvocateowithoo Mr.oAmandeepoSinghoTalwar,oAdvocateoforotheoappellant.oo o o o Mr.oKunaloDawar,oAdvocateoforotheocaveator/respondent.oo o o o o o o o *****o o VIKASoSURI,oJ.o

1.o o Presentobunchoofoappeals,otheodetailsoofowhichoareomentionedo herein-above,oinvolveocommonoissuesoofolawoandosimilarosetoofofacts,oando hence,owithotheoconsentoofotheoparties,ohaveobeenotakenoupotogetheroandoareo beingodisposedoofobyocommonoorder.o

2.o o Theo challengeo ino theseo appealso iso too theo ordero datedo

21.02.2025,o passedo byo theo Haryanao Realo Estateo Appellateo Tribunalo (hereinafteroreferredotooaso"Tribunal"),owherebyotheoordersopassedobyotheo Haryanao Realo Estateo Regulatoryo Authority,o Gurugramo (hereinaftero referredotooaso"Authority")owereosetoasideoandotheocomplaintsofiledobyotheo appellant(s),ohaveobeenodismissed.o

2.1o o Foro theo convenienceo ofo reference,o factso areo beingo referredo fromoRERA-APPL-55-2025,otitledoasoInitiaoSolutionsoPrivateoLimtedovs.o EMAARoIndiaoLimited,oarisingooutoofoAppealoNo.o373oofo2022o(emanatingo fromo Complainto No.o CR/3115/2021),o aso theo commono verdicto haso beeno passedoinotheosaidomatter,obyotheolearnedoTribunal.oo

3.o o Succinctly,o 31o complaintso wereo filedo beforeo theo Authorityo RERA-APPL-54-2025oandootheroo -8-o o o againsto Emaaro Indiao Limitedo (formerlyo knowno aso 'Emaaro MGFo Lando Limited')oallegingoviolationoofotheoRetailoSpaceoBuyer'soAgreemento(foro short,o"buyer'soagreement")oexecutedoinorespectoofotheounitsoinoquestion.o Theocruxoofotheocomplainant'socaseobeforeotheoAuthorityowasonon-deliveryo ofo possessiono andonon-issuanceoofo conveyanceo deed,o togethero witho theo project'so non-registrationo undero theo Realo Estateo (Regulationo ando Development)oAct,o2016o(hereinafteroreferredotooaso"RERAoAct").oTheo complainantsodemandedodeliveryoofopossessionoofotheounitsoandoawardoofo DelayedoPossessionoChargeso(foroshort,o"DPC").oTheoAuthorityoproceededo toodecideotheoaforesaidocomplaintsovideothreeoseparateocommonoorders,o whichowereoassailedobeforeotheoTribunal.o

3.1o o Theo Authorityo disposedo ofo theo complaints,o video theo orderso impugnedobeforeotheoTribunal,otheooperativeopartowhereoforeadsothus:o "K.o Directionsoofotheoauthorityo

61.oo Hence,o theo authorityo herebyo passeso thiso ordero ando issuesotheofollowingodirectionsounderoSectiono37oofotheo Actotooensureocomplianceoofoobligationsocastouponotheo promoteroasoperotheofunctionoentrustedotootheoauthorityo underoSectiono34(f):o i.oo Theorespondentoisodirectedotooofferopossessionoofo theosubjectounitotootheocomplainantowithino1omontho fromo theo dateo ofo thiso ordero ando thereafter,o theo complainanto shallo takeo possessiono ofo theo subjecto unitowithino2omonthsofromotheodateoofothisoordero afteropayingotheooutstandingodues.o ii.oo Theorespondentoisofurtherodirectedotoopayointerestoato theoprescribedorateoi.e.osimpleointerestoatotheorateoofo

9.30%operoannumoforoeveryomonthoofodelayoonotheo RERA-APPL-54-2025oandootheroo -9-o o o amountopaidobyotheocomplainantow.e.f.otheodueodateo ofo handingo overo possessiono aso pero theo buyer'so agreementoi.e.o05.02.2016otillotheodateoofohandingo overoofotheoactualophysicalopossessionoofotheounito oroupotootwoomonthsofromotheovalidowrittenoofferoofo possessiono ifo possessiono iso noto takeno byo theo complainant,owhicheveroisoearlier.oTheoarrearsoofo interesto accruedo soo faro shallo beo paido too theo complainantowithino90odaysofromotheodateoofothiso orderoasoperoruleo16(2)oofotheorules.oo iii.ooTheo timeo periodo foro whicho theo complainanto iso entitledotoodelayopossessionochargesoandoamountoono whicho interesto iso too beo calculatedo foro allo theo connectedocomplaintsoareodetailedoinotableogivenoino parao49oofothisoorder.oHence,otheodelayopossessiono chargeso ino thoseo complaintso basedo theo aboveo decisiono ofo theo authorityo shallo beo squarelyo applicableoinoallotheocomplaintsomentionedoinoparao 3oofothisoorder.o iv.ooTheorespondentoisoentitledotootheooutstandingodues,o ifo any,o payableo byo theo complainant.o Further,o theo interesto ono theo delayo paymentso fromo theo complainantoshallobeochargedoatotheoprescribedorateo i.e.o9.30%obyotheorespondent/promoterowhichoisotheo sameoisobeingograntedotootheocomplainantoinocaseoofo delayedopossessionochargesoasoperosectiono2(za)oofo theoAct.o v.oo Theorespondentoshallosetooffotheooutstandingodueso uponodulyoinformingotheocomplainantoofotheosameo ino writingo againsto theo delayo possessiono chargeso whicho theo respondento iso liableo too payo too theo complainantoasoperotheoprovisootooSectiono18(1)oofo theoAct.o vi.ooTheorespondentoshallonotochargeoanythingofromotheo RERA-APPL-54-2025oandootheroo -10-o o o complainanto whicho iso noto parto ofo theo buyer'so agreement.oTheorespondentoisonotoentitledotooclaimo holdingo chargeso fromo theo complainant(s)/o allottee(s)o ato anyo pointo ofo timeo eveno aftero beingo partoofotheobuyer'soagreementoasoperolawosettledobyo Hon'bleoSupremeoCourtoinociviloappealonso.o3864-3889/2020odecidedoono14.12.2020.o

62.o Theo decisiono shallo mutatiso mutandiso applyo too caseso mentionedoinoparao3oofothisoorder.o

63.o Complaintsostandodisposedoof.oTrueocertifiedocopyoofo thiso ordero shallo beo placedo ino theo caseo fileo ofo eacho matter.o Thereo shallo beo separateo decreeo ino individualo cases.o

64.o Fileobeoconsignedotooregistry."o oo o o

3.2o o Aggrievedobyotheoaforesaidoorderoandoverbatimoordersopassedo inootherosimilarocomplaints,ocomprisedoinotwoosets,otheorespondent-Emaaro IndiaoLimitedocarriedotheomatterotootheoTribunal,obyowayoofoanoappealoinoallo theoaforesaidocases.oThus,otheoTribunalowasoseizedoofo31oappealsoarisingo fromothreeoseparateoorders,opassedobyotheoAuthorityoinotheorespectiveosetoofo complaints.ooo

3.3o o TheolearnedoTribunalodelvedointootheorivalocontentionsoofotheo partieso and,o uponoprofoundo consideration,o foundotheotransactionso too beo highlyoquestionable,obeingoprimarilyointra-corporateo(betweenotheoparento companyo ando itso entities),o withouto considerationo oro foro negligibleo consideration,oandohence,onotocoveredounderotheoarm's-lengthoprincipleooro genuineoconsumerotransactions.oItowasofurtheroobservedothatonootransparento orocompetitiveoprocessoforoallotmentowasobroughtoonorecord.oThus,otheo RERA-APPL-54-2025oandootheroo -11-o o o learnedo Tribunalo concludedothatotheo appellant/allottee-companyo dido noto fallowithinotheotermo'consumer',oasotheotransactionowasointeroseocontractingo promotersowithoutoanyooutsideoparticipationoandoalsoonoticedotheofactothato theobuyer'soagreementowasoassignedotootheoappellant(s)obyonomination/o transfer.o Theo essenceo ofo theo disputeo waso heldo too beo betweeno co-promoters/corporateo affiliateso followedo byo demerger,o ando waso noto ao disputeobetweenoaopromoteroandoaoconsumeroasoperotheorequirementoundero theoRERAoAct.oTakingonoteoofotheofactothatotheoprojectowasonotoregisteredo undero theo RERAo Act,o ito waso stillo furthero observedo thato theo regulatoryo mechanismo createdo undero theo RERAo Acto iso meanto too dealo witho theo disputeso betweeno theo allottee/consumerso ando theo promoterso whoo fallo strictlyowithinotheopurviewoofotheoenactment;oandotheoinstantocaseodoesonoto fallo withino theo saido parameters.o o Dehorso theo discussion,o theo learnedo Tribunalorefrainedofromoexpressingoanyofinaloopinionoonotheoissuesothatoito wasonotodirectlyoseizedoof.oo

4.o o Feelingo aggrievedo byo theo aforesaid,o theo complainant-appellant(s)o haveo preferredo theo presento appeals,o invokingo jurisdictiono underoSectiono58oofotheoRERAoAct.o

5.o o Learnedo senioro counselo foro theo petitionero arguedo thato theo learnedoTribunalohasonotoappreciatedothatotheoappellantoisocoveredowithino theoambitoofo"allottee",oasodefinedounderoSectiono2(d)oofotheoRERAoAct,o beingoaopartyotootheo"agreementoforosale"obyowayoofosubstitution,owhichoiso definedo undero Sectiono 2(c)o ibid.o o Ino theo presento case,o theo unito waso RERA-APPL-54-2025oandootheroo -12-o o o transferredoinotheonameoofotheoappellantoafteroobtainingoconsentoofotheo originalo allotteeo viz.,o Sikarwaro Developerso Pvt.o Ltd.,o video lettero datedo

30.12.2015.o Thus,o nameo ofo theo allotteeo waso substituted.o Ito waso furthero submittedothato'allottee'omeansotheopersonotoowhomotheoplot,oapartmentooro buildingohasobeenoallottedoando'person'oisodefinedounderoSectiono2(zg),o whicho includeso ao company.o Therefore,o theo appellant,o despiteo beingo ao juristicopersono(company),ofallsowithinotheoambitoofoano'allottee'.oRelianceo hasobeenoplacedouponotheodecisionoinoManishoKumarovs.oUnionoofoIndiao andoanother,o(2021)o5oSCCo1.o

5.1o o Ito iso furthero arguedo ono behalfo ofo theo appellantso thato theo question,owhethero'anyoperson'oaggrievedoofoanounregisteredorealoestateo projecto cano invokeo theo provisionso ofo theo RERAo Acto oro not,o standso answeredoinofavouroofotheoallotteesobyoaoDivisionoBenchoofothisoCourtoino CWP-24591-2024o decidedo ono 30.01.2025,o titledo aso M/so Ramprasthao DevelopersoPvtoLtdoandoothersovs.oStateoofoHaryanaoandoothers,oreportedo ino 2025(3)o RCRo (Civil)o 99.o Thus,o ito waso contendedo thato ino viewo ofo aforesaidobindingoprecedent,orelianceooughtonototoohaveobeenoplacedoupono theojudgmentorenderedobyoaolearnedoSingleoBenchoofotheoMadrasoHigho CourtoinoM/soDevinarayanoHousingoandoPropertyoDevelopmentsoPrivateo Limitedo vs.o Manuo Karano ando others,o reportedo ino 2023(6)o CTCo 858,o whichoisonotoapplicableotootheopresentocaseoandoisodistinguishableoonofacts,o asosuch.o

5.2o o Learnedo counselo foro theo appellanto alsoo urgedo thato theo RERA-APPL-54-2025oandootheroo -13-o o o complainant-appellantocannotobeoconsideredoaoco-promoteroasoitodoesonoto fallowithinotheodefinitionoofo"promoter"ounderoSectiono2o(zk)oofotheoRERAo Act.ooMoreover,oaoperusaloofotheoMemorandumoofoUnderstandingo(MOU)o datedo21.08.2017oshowsotheoappellantonototoobeoaopartyotootheosaidoMOUooro anoentityoofoeitheroofotheopartiesothereto,ohence,otheotermsothereofocannotobeo construedotoonovateotheoBuyer'soAgreement.oo

5.3o o Itowasofurtherosubmittedoonobehalfoofotheoappellantsothatotheo validityo ofo allotmento madeo byo respondent-promotero too theo complainant-appellanto haso noto beeno challengedo beforeo anyo competento forum,oandoasosuch,otheotransactionsoremainsobindingoonotheoparties.oo

6.o o Pero contra,o learnedo counselo foro theo respondento companyo contestedo theo aboveo noticedo submissionso ofo theo appellant(s),o whileo defendingo theo impugnedo order.o Ito haso beeno submittedo thato theo promoter/respondento resistedo theo complainto primarilyo ono theo followingo grounds:o(i)otheoappellantocouldonotoinvokeotheoremedyounderotheoRERAo Act,oasotheoprojectoinoquestionowasonotoregisteredounderotheostatuteoibid,o

(ii)otheocomplainantsowereonotogenuineoallottees/consumersobutoentitiesoofo theosameocorporateogroupoasotheopromoter;oando(iii)otheoentireodisputeowaso essentiallyo intra-promoter,o governedo byo ao 2017o Memorandumo ofo Understandingo (MOU)o betweeno Emaaro MGFo Lando Limitedo ando MGFo DevelopmentoLimited,oalongowithotheiroassociates,oandonotobyotheobuyer'so agreement.o Ito waso furthero submittedo thato theo suprao MOUo stipulatedo transfero ofounitso contingento upono fulfilmentoofo pre-conditionso ando alsoo RERA-APPL-54-2025oandootheroo -14-o o o containedoanoarbitrationoclause,owhichowasotoobeoinvokedoinocaseoofoanyo disputeo beingo raisedo byo theo appellant.o Accordingo too counselo foro theo respondent,othisoMOUotherebyohadoresultedoinoaonovationoofotheobuyer'so agreementoandohence,otheooriginaloagreementocannotobeomadeotheobasisoofo actionobroughtobyotheoappellantobeforeotheoAuthority.oTheocounseloalsoo contendedo thato theo transactionso relevanto foro theo instanto appealo areo theo subject-matteroofoaodisputeobeforeotheoNationaloCompanyoLawoTribunal,o PrincipaloBench,oNewoDelhi,obetweenotheoconcernedopartiesosinceotheyo wereomadeoforonegligibleoconsideration,otherebyooustingotheojurisdictionoofo theoAuthority.oTheoimpugnedoorderowasothusodefendedobyotheorespondent.o

7.o o Iohaveoheardolearnedocounseloforotheopartiesoandowithotheoableo assistanceoofotheocounseloforotheoparties,ohaveocarefullyoperusedotheopaper-bookoandotheomaterialsomadeoavailableoduringotheocourseoofohearing.o

8.o o Theo firsto issueo thato ariseso foro considerationo ino theo presento appealoiso whetheronon-registrationo ofo theo projectounderotheoRERAo Acto wouldobarotheojurisdictionoofotheoAuthorityotooentertainocomplaintsofromo aggrievedoallottees.oo

9.o o Theosaidoissueoisonoolongeroresointegraoinotheolightoofotheodictao ino theo verdicto byo ao Divisiono Bencho ofo thiso Courto ino M/so Ramprasthao DevelopersoPvtoLtdoandoothersovs.oStateoofoHaryanaoandoothers,oreportedo ino 2025(3)o RCRo (Civil)o 99.o o Admittedly,o theo projecto ino questiono haso neitherobeenoregisteredonoroanyoordersohaveobeenopassedoinothatoregardo underotheoprovisootooSectiono3(1)oofotheoRERAoAct,oasowasotheofactualo RERA-APPL-54-2025oandootheroo -15-o o o positionoinoRamprastha'socaseo(supra).oTheoDivisionoBencho(ofowhichoIo wasoaomember)oafteroreferringotoovariousoprovisionsoofotheoRERAoActoheldo thatotheoaggrievedoallotteesohaveoaostatutoryorightotoofileocomplaintsoforo violationso oro contraventionso ofo theo RERAo Acto ando theo Authorityo haso jurisdictionotooentertainocomplaintsofromoallotteesoirrespectiveoofowhethero theopromoterohasoregisteredotheoprojectooronot.oItowasofurtheroheldothatonon-registrationo ofo ao projecto undero Sectiono 3(1)o ofo theo Acto ibido doeso noto precludeotheojurisdictionoofotheoAuthorityotooadjudicateodisputesobroughto byoaggrievedoallottees.oTheorelevantoportionoofotheosaidojudgmentoreadso thus:o "7.oo Forotheoreasonsotoobeoassignedohereinafter,otheo(supra)o addressedo submissionso beforeo thiso Courto areo rejectedo primarily,o foro theo reasono (1)o thato eveno ifo assumingly,o theo presentopetitionersowereonotograntedoaolicenceoinotermsoofo Sectiono 3o ofo theo RERAo Acto (supra),o provisionso whereofo becomeoextractedohereinabove.oHowever,otheononoissuanceo ofotheorelevant/appositeolicenceotootheopresentopetitioners,oyeto doesonotoyetorestrictotheorightoofotheohomeobuyers,otooaccesso theo remedyo aso contemplatedo undero theo instanto specifico statute,oi.e.otheoRERAoAct.oo

8.oo Theoreasonoforostatingosooemanatesofromotheofactum,o thato thougho theo provisionso embodiedo ino sub-Sectiono 1o ofo Sectiono 3o ofo theo RERAo Act,o thougho entailo ao statutoryo obligationo vis-a-viso theo promoter,o rathero againsto hiso advertising,omarketing,obooking,osellingooroofferingoforosale,o oro invitingo personso too purchaseo ino anyo mannero anyo plot,o apartmentoorobuilding,oasotheocaseomayobe,oinoanyorealoestateo projectooropartoofoit,oinoanyoplanningoarea,othusowithoutotheo promoteroregistering,otheorealoestateoprojectowithotheoRERAo RERA-APPL-54-2025oandootheroo -16-o o o Authorities.oo

9.oo Moreover,othoughotheofirstoprovisootoosub-Sectiono1oofo Sectiono3oofotheoRERAoAct,othoughomakesocontemplationso thato vis-a-viso projectso thato areo ongoing,o ono theo dateo ofo commencementoofothisoAct,oandoforowhichotheocompletiono certificateo haso noto beeno issued,o thereuponso theo promotero becomesoenjoinedotoomakeoanoapplicationotootheoAuthority,o forocausingotheoregistrationoofotheosaidoprojectobutowithinoao periodoofothreeomonthsofromotheodateoofocommencementoofo thisoAct.oo

10.oo Ino additiono theo secondo provisoo whicho occurso undero sub-Sectiono1oofoSectiono3oofotheoRERAoAct,ofurtheromakeso speakingsotootheoextent,othatoitocastsoaostatutoryoobligationo uponotheocompetentoauthority,otooifoitoinoitsoprofoundowisdomo itodeemsoitonecessary,obutoinotheointerestoofoallottees,otooquao sucho projects,o whicho areo developedo beyondo theo planningo area,obutowithotheorequisiteopermissionoofotheolocaloauthority,o thuso too makeo ao directiono upono theo promotero ofo sucho ao project,otooregisterotheosameowithotheoauthority,owhere-uponso theo provisiono ofo theo saido provisiono oro theo ruleso ando regulationso madeo thereunderso becomeo furthero declaredo too applyotoosuchoprojectsofromotheodateooforegistration.oo

11.oo Consequently,othoughoinotermsoofotheosecondoprovisoo too sub-Sectiono 1o ofo Sectiono 3o ofo theo RERAo Act,o thuso irrespectiveoofotheopromoteroratheroomittingotoothusowithotheo RERAoAuthorities,obutocauseotheoappositeoregistration.oYet,o whenoaostatutoryoobligationobecomesoencumberedouponotheo authority,otooinotheointerestoofoallottees,othusoinorespectoofotheo appositeo project(s),o too yet,o makeo ao directiono upono theo promoterotooensureotheoregistrationoofotheorelevantoprojecto withotheoauthorityoconcerned.oMoreover,owithotheoprovisionso asoembodiedoinoSectiono59o(2)oofotheoRERAoAct,oprovisionso becomeoextractedohereinafter,omakingocontemplationsovis-a-RERA-APPL-54-2025oandootheroo -17-o o o viso theo necessityo ofo impositiono ofo punishmento upono theo violatoroconcerned,ouponohis/heromakingoevidentoviolationso vis-a-viso theo provisionso embodiedo ino sub-Sectiono 1o ofo Sectiono3oofotheoRERAoActoorouponohisofailingotoocomplyo withotheoorderoasobecomeoissuedobyotheocompetentoauthorityo ino termso ofo theo statutoryo contemplations,o aso madeo ino theo secondoprovisootooSectiono3,oratheroforoaotermowhichomayo extendotoo3oyearsoorowithofineowhichomakesoextendouptooao furthero10%operocentumoofotheoestimatedocostoofotheoRealo EstateoProjectoorowithoboth.oo "Sectiono 59:o Punishmento foro non-registrationo undero sectiono3.oo o 59.o (1)o Ifo anyo promotero contraveneso theo provisionsoofosectiono3,oheoshallobeoliableotooaopenaltyo whichomayoextendoupotootenoperocent,oofotheoestimatedo costoofotheorealoestateoprojectoasodeterminedobyotheo Authority.oo o (2)ooIfoanyopromoterodoesonotocomplyowithotheo orders,o decisionso oro directionso issuedo undero sub-sectiono(1)oorocontinuesotooviolateotheoprovisionsoofo sectiono3,oheoshallobeopunishableowithoimprisonmento foroaotermowhichomayoextendoupotoothreeoyearsoorowitho fineowhichomayoextendoupotooaofurtherotenoperocent,oofo theoestimatedocostoofotheorealoestateoproject,oorowitho both."o o

12.oo Resultantly,oonomakingsoofocombinedoandoharmoniouso readingso ofo statutoryo provisionso supra,o theo conclusiono therefrom,obutoisothat,othoughoprimaofacieothereobecomesoano encumberedo ao statutoryo necessity,o upon,o ao developer/o promoter,o too causeo theo appositeo registrationo beforeo hiso proceedingomarket,obook,osellooroofferoforosaleomanneroanyo plot,oapartmentoorobuilding,oasotheocaseomayobe,oinoanyorealo estateoprojectooropartoofoit,oinoanyoplanningoarea.oMoreover,o theofurtheroensuingoinferenceotherefrom,oisothat,othereoalsooiso aostatutoryoobligationocastouponotheocompetentoauthority,otoo buto ino theo interesto ofo theo allotees,o yeto ino respecto ofo theo appositeoprojectsodevelopedobeyondotheoplanningoarea,obuto RERA-APPL-54-2025oandootheroo -18-o o o witho theo requisiteo permissiono ofo theo localo authority,o thuso makeoaodirectionouponotheopromoterotooregisterotheoprojecto witho theo competento authority,o wherebyso theo provisionso ofo thisoActoandoofotheothereunderoregulationsoareodeclaredotoo becomeo applicableo quao sucho projectso fromo theo dateo ofo registration.oMoreover,otheofurtheroinferenceotherefroms,oiso that,osinceotheosanctionobehindotheolackoofocomplianceoquao theoorderorenderedoinotheotermsoofotheosecondoprovisootoosub-Sectiono 1o ofo Sectiono 3o ofo RERAo Act,o thuso alsoo becomeso embodiedo ino Sectiono 51o ofo RERAo Act,o therebyso theo appositelyomadeoorderorequiresoadherenceotheretosobecomingo made,o rathero thuso too avoido theo impositiono ofo theo suprao punishments.oo o "51.o Officerso ando othero employeeso ofo Appellateo Tribunal―(1)o Theo appropriateo Governmento shallo provideo theo Appellateo Tribunalo withosuchoofficersoandoemployeesoasoitomayodeemofit.oo o (2)o Theo officerso ando employeeso ofo theo Appellateo Tribunalo shallo dischargeo theiro functionso underotheogeneralosuperintendenceoofoitsoChairperson.oo o (3)oTheosalaryoandoallowancesopayable,otooando theo othero termso ando conditionso ofo serviceo of,o theo officerso ando employeeso ofo theo Appellateo Tribunalo shallobeosuchoasomayobeoprescribed."o o

13.oo Consequently,othoughotheolearnedocounseloappearingo forotheopetitioners,osubmitsothatowhenoneitherotheoprovisionso ofosub-Sectiono1oofoSectiono3oofoRERAoActosupra,obecameo compliedowithoatotheoinstanceoofotheopresentopetitioner(s)onoro wheno ino termso ofo theo secondo provisoo ofo sub-Sectiono 1o ofo Sectiono 3o ofo theo RERAo Act,o theo ordero ordainedo thereinso becameo madeo byo theo competento authority,o whereas,o onlyo therebys,othusotheoprovisionsoofosub-Sectiono2oofoSectiono59o ofoRERAoActowouldobecomeogalvanized,owhichohoweveroforo theo appositeo omissionso rathero cannoto becomeo galvanised.o Resultantly,o therebyso thougho thereo iso primao facieo someo substanceoinotheoargumentsoraisedotodayobeforeothisoCourt,o RERA-APPL-54-2025oandootheroo -19-o o o byotheolearnedocounseloforotheopetitioners,othatoinotheowakeoofo respectiveo non-issuanceo ofo theo appositeo licence,o too theo relevantoproject,obesides,oalsooforowantoofotheoprovisionsoofo theosecondoprovisoobecomingoactivated,otherebysothereowaso noovalidoassumptionoofojurisdictionobyotheoRERAoauthorityo vis-a-visotheoinstantocomplaints.oo

14.oo Ino othero words,o foro theo aboveo omissionso oro foro theo aboveowants,oitoisoarguedobeforeothisoCourtobyotheolearnedo counselo foro theo petitioners,o thato theo assumptiono ofo jurisdictiono overo theo subjecto complaints,o whereons,o theo impugnedo verdicto becameo recordedo rathero waso ano illo assumedo jurisdictiono thereo overso ando alsoo therebyso theo impugnedoorderoisonon-est.oo

15.oo Furthermore,o though,o theo learnedo counselo foro theo respondentso referso too pageo No.311o ofo theo paper-book,o wherein,othereoareospeakings,othatotheopresentopetitionersohado soughtorenewaloofolicenceoNo.o128oofo2012odatedo28.12.2012o forosettingoupoofoResidentialoPlottedoColony,ooveroanoareao measuringo 105.402o acreso fallingo ino Sector-37Co &o 37D,o Gurugram,oManesaroUrbanoComplex,owhereofromsoalsooitoiso abundantlyoclear,othatotheosupraolicenceobecameonotoissuedo withinotheoambitoofotheocontemplationomadeoinosub-Sectiono1o ofoSectiono3oofotheoRERAoAct.oHowever,oyetoforotheofurthero reasonso too beo assignedo hereinaftero rathero theo non-compliances,oifoany,oorotheonon-work-abilitiesoifoany,ovis-a-viso sub-Sectiono 1o ofo Sectiono 3o ofo RERAo Act,o oro non-activationoofotheosecondoprovisooofosub-Sectiono1oofoSectiono 3,oratherocarryonooconsequentialoilloeffects,osootooforbidotheo presentorespondents,otooagitateotheiroclaimoagainstotheopresento petitioners,othusobeforeotheoRERA.oo

16.oo Theoreasonoforosoostatingobecomesointeroaliaofoundedo uponotheofactumo(I)othatotheopresentopetitionersohaveomadeoao rigidodependenceobothouponotheoprovisionsowhichooccuroino RERA-APPL-54-2025oandootheroo -20-o o o sub-Sectiono1oofoSectiono3oofoRERAoActoandoalsoouponotheo provisionso aso becomeo embodiedo ino theo secondo provisoo thereof.o Moreover,o theo counselo foro theo petitionerso buto haso alsoo remainedo unmindfulo vis-a-vis,o theo facto thato theo saido provisionso wereo too beo alsoo reado alongwitho theo othero correspondingoprovisionsowhichooccuroinotheoRERAoAct.oo

17.oo Therefore,oallotheohereafteroalludedotooprovisions,oaso occuro theo RERAo Act,o areo too beo alsoo reado harmoniouslyo alongwitho theo suprao provisions,o whereupono thus,o foro theo furthero reasonso too beo assignedo hereafter,o rathero theo argumentso addressedo beforeo thiso Courto byo theo learnedo counseloforotheopetitioner,obecomeorenderedoinfirmoandoaso suchodeserveobecomingorejected.oTheosaidoprovisionsoareotheo onesowhichooccuroinoSectiono31oofotheoRERAoAct,oprovisionso whereofobecomeoextractedohereinafter.o "31.oFilingoofocomplaintsowithotheoAuthorityoorotheo adjudicatingoofficer:-oo o (1)oAnyoaggrievedopersonomayofileoaocomplainto withotheoAuthorityoorotheoadjudicatingoofficer,oasotheo caseomayobe,oforoanyoviolationoorocontraventionoofotheo provisionso ofo thiso Acto oro theo ruleso ando regulationso madeo thereunder,o againsto anyo promoter,o allotteeo oro realoestateoagent,oasotheocaseomayobe."oo o

18.oo Aoreadingoofotheohereinaboveoextractedoprovisions,oaso carriedoinoSectiono31oofotheoRERAoAct,orevealothat,othereoisoao bestowmentoofoaostatutoryorightoinoanyoaggrievedopersonotoo fileoaocomplaintowithotheoauthorityoorobeforeotheoadjudicatingo officer,othusorelatingotooanyoviolationsoorocontraventionsoquao anyo provisionso ofo theo Acto oro ofo theo ruleso ando regulationso madeo thereunder,o and,o theo saido statutoryo endowmento iso statedo thereino too beo ablyo raisableo againsto anyo promoter,o allotteeo oro Realo Estateo Agent,o aso theo caseo mayo be.o Resultantly,otherebys,otheoissueorelatingotootheoexercisingoofo ableo jurisdiction,o upon,o theo appositeo complainto rathero becomeso moreo pointedlyo underpinned,o ono theo suprao RERA-APPL-54-2025oandootheroo -21-o o o provisionso relatingo too theo adjudicatoiyo capacityo ofo theo RERA,othanovis-a-visorespectiveoomissionsobeingomadeotoo eitherosub-Sectiono1otooSectiono3oofoRERAoActoorotootheo secondoprovisootoosub-Sectiono1oofoSectiono3oofoRERAoAct.oo

19.oo Theo necessityo ofo complianceso beingo madeo vis-a-viso theoprovisionsooccurringoinosubSectiono1oofotheoSectiono3oofo theoRERAoActoorovis-a-visotheoprovisionsoembodiedoinotheo secondoprovisootoosuboSectiono1oofoSectiono3oofoRERAoAct,o ratherowouldobeoofoimmenseoconsequentialosignificance,obuto insofaroasotheoinstantocaseoisoconcerned,otheostatuteodoesonoto demandorigidocompliancesotheretos,oratherotheyobutoareotoobeo reado alongo witho theo Statutoryo vestmento ofo adjudicatoryo competenceoinotheoRERAoauthorities.oTheoreasonoforostatingo so,o emanateso fromo theo factum,o thato theo saido provisionso purportedlyo demandingo absoluteo compliance,o buto doo noto underpino theo issueo relatingo too theo vestingo ofo adjudicatoiyo competenceoinotheoRERAoAuthority.oHowever,otheoappositeo provisiono wherebyo becomeso conferredo theo jurisdictionalo adjudicatoryocompetenceoinotheoRERAoauthorities,oratheroiso theooneowhichobecomeoembodiedoinoSectiono31oofotheoRERAo Act.oo

20.oo Ifo so,o ino othero words,o theo vestingo ofo jurisdictionalo competence,oinotheoRERAoauthority,oisopinpointedlyogroovedo upono theo bestowmento ofo ao remedyo too theo aggrieved,o thuso througho theo statutoryo mandateo enclosedo ino Sectiono 31o ofo RERAoAct,othanoupon,otheonecessityoofocompliancesobeingo madeobyotheopromoter,ovis-a-visotheomandateowhichooccurso inosub-Sectiono1oofotheoSectiono3oofoRERAoAct.oMoreovero therebyso wantso ifo anyo ofo complianceso rathero eveno byo theo competentoauthority,ovis-avis,otheomandateoenclosedoinotheo secondoprovisootoosub-Sectiono1oofoSectiono3oofoRERAoAct,o thusoisonototheoappositeostatutoryoprecursororatheroforovestingo theo competento adjudicatoiyo jurisdictiono ino theo RERAo RERA-APPL-54-2025oandootheroo -22-o o o Authorities.oo

21.oo Moreover,o sinceo theo termo 'promoter'o aso definedo ino Sectiono 2o (zk)o ofo theo RERAo Act,o haso beeno statutorilyo impartedo ano omnibuso meaningo wherebyo ito coverso "anyo person"o whoo constructso oro causeso too beo constructed,o ano independentobuildingooroaobuildingoconsistingoofoapartments,o oro convertso ano existingo buildingo oro ao parto thereofo intoo apartments,o foro theo purposeo ofo sellingo allo oro someo ofo theo apartments,otoootheropersonsoandoincludesohisoassignees.oIno sequel,otherebysoifotheosaidoplenitudeoofostatutoryomeaning,o thusobecomesoassignedotoo"promoter"obesides,owhenotheotermo Realo Estateo Project,o haso beeno definedo too covero theo developmento ofo ao buildingo oro ao buildingo consistingo ofo apartments,o oro convertingo ano existingo buildingo oro ao parto thereofo intoo apartments,o oro theo developmento ofo lando intoo plotsooroapartments,oasotheocaseomayobe,oforotheopurposeoofo sellingo allo oro someo ofo theo saido apartmentso oro plotso oro buildings,oasotheocaseomayobe."o o "23.oo Consequently,o ifo theo suprao impartedo statutoryo definitions,otootheosupraostatutoryowords,oareoreadoalongwitho theo endowmento ofo ao statutoryo privilegeo vis-a-viso ano aggrieved,ofromoanyoviolations,oasobecomeostatedoinoSectiono 31o supra.o Aso sucho wheno therebyso anyo aggrieved,o thuso becomeso bestowedo witho theo right,o too ino theo evento ofo anyo promoter,oallotteeoororealoestateoagent,oasotheocaseomayobeo rathero makingo violationso vis-a-viso anyo ofo theo statutoryo provisions.oResultantly,owhenotheomakingsoofosuchoviolationso byosupraovis-a-vis,othusoanyoofotheostatutoryoprovisionsoaso occuroinotheoRERAoActooroquaoanyoofotheorulesoasobecomeo formulatedo thereunders,o wheno thuso conferso ao righto ino theo homeo buyer(s)o too agitateo hiso grievanceo beforeo theo RERAo Authority.o RERA-APPL-54-2025oandootheroo -23-o o o

24.oo Consequently,o sinceo theo gamuto ofo theo appositeo jurisdictionalo provisions,o relatingo too theo confermento ofo competentoadjudicatoiyojurisdiction,ouponotheoRERAovis-a-visotheoinstantocontroversy,owhenobutoalsoonaturallyocoverso promoter(s),owhooirrefutablyoalsooisotheopresentopetitioner,oaso heo haso evidentlyo ino termso ofo theo definitiono ofo 'promoter',o offeredothroughoAnnexureoP-3oratherotheosubjectoprojectoforo saleo too theo prospectiveo buyers.o Resultantly,o wheno ono makingso ofo plaino ando literalo interpretationo ofo theo suprao provisions,o buto manifestso thato therebyso theo competento adjudicatoryo jurisdictiono vis-aviso complaints,o aso receivedo fromoanyoilloactoofoevenoaopromoter,oasotheopresentopetitioner,o thuso is,o henceo becomeso conferredo upono theo RERAo authorities.oInosequelobothotheofilingoofotheocomplaintsoando alsoo ino theo makingso ofo decision(s)o thereons,o thuso neithero sufferso fromo anyo inherento jurisdictionalo defecto noro theo exercisingo ofo adjudicatoiyo jurisdictiono byo theo RERAo authority,oupon,otheosubjectocomplaints,obecomeoriddenowitho theoviceoofocoramononojudiceonoroalsootheoexercisingoofowrito jurisdictionobyothisoCourt,othusoinotheofaceoofoavailabilityoofo remedyo ofo appealo too theo presento petitioner,o too therebyso challengeoAnnexureoP-1,othusoisoaowellore-coursedoremedy.oo

25.oo Resultantly,oalsootherebysotheononoregistrationoofotheo subjectoprojectobyotheopresentopetitionersowithotheoRERAonoro theopassingoofoanyoorderoinotermsoofosecondoprovisooofosub-Sectiono 1o ofo Sectiono 3o ofo RERAo Act,o thuso iso completelyo meaninglesso noro therebyso theo complaintso filedo byo theo allotteeso concerned,o cano beo arguedo too beo noto competentlyo institutedocomplaints,othusobyotheoaggrievedoconcerned,ofromo theopurportedoilloactso ofotheopromoter,owhooisotheopresento petitioner.oo

26.oo Furthermore,osinceoSectiono37oofotheoRERAoAct,oalsoo confersoaoplenitudeoofojurisdictionouponotheoRERAoauthorityo RERA-APPL-54-2025oandootheroo -24-o o o toorather,oforotheopurposeoofodischargingoitsofunctionoundero theo provisionso ofo thiso Acto oro theo ruleso oro regulationo thereunders,othusoissueosuchodirectionsoasorequiredofromotimeo tootimeovis-a-vis,opromotersooroallotteesoororealoestateoagents.o Consequently,o theo suprao plenitudeo ofo jurisdictiono aso envisagedo ino Sectiono 37o ofo RERAo Acto wheno alsoo coverso promoterso oro allotteeso oro realo estateo agents,o therebyso too,o thereo waso noo requiremento foro theo presento petitionerso aso arguedotodayobeforeothisoCourt,oforotheirsobeingoregisteredo withotheoRERAoAuthorities."o o Itohas,othus,obeenoheldothatonon-registrationoofoaoprojectounderoSectiono3(1)o ofotheoRERAoActodoesonotoprecludeotheojurisdictionoofotheoAuthorityotoo adjudicateodisputesobroughtobyoaggrievedoallottees,owhoohaveoaostatutoryo rightotoofileocomplaintsoforoviolationsoorocontraventionsoofotheoActoibid.o Theo Authorityo haso jurisdictiono too entertaino complaintso fromo allotteeso irrespectiveoofowhetherotheopromoterohasoregisteredotheoprojectooronot.oIno summa,otheoissueoatohandostandsocoveredoinofavouroofotheoallotteesolikeotheo appellantoandoisodecidedoaccordingly.o

10.o o Theo legalo principleo haso noto beeno disputedo thato ao decisiono renderedo byo ao Divisiono Bencho commandso theo strengtho ofo ao bindingo precedentouponotheosingleoJudgeoofotheosameoCourt,owhereasotheodecisiono byoanotheroHighoCourtohasoonlyopersuasiveovalue.oo

11.o o Theootheroissuesothatoarisesoforoconsiderationoinotheoinstanto appealoareowhetherotheoappellant/complainantoisoano"allottee"ounderotheo RERAo Acto ando whethero theo ambito ando scopeo ofo theo saido term,o iso co-terminusowithothatoofotheotermo'consumer'ounderotheoConsumeroProtectiono RERA-APPL-54-2025oandootheroo -25-o o o Act,o2019.o

12.o o Foroproperoappreciationoofotheoargumentoadvancedoonobehalfo ofotheoappellantoandotheocounteroargumentoonobehalfooforespondentoonotheo aforesaidoissues,oitowouldobeoappositeotooreferotootheohereinafteroextractedo provisionsoasowelloasotheoobjectsoandoreasons:o o TheoRealoEstateo(RegulationoandoDevelopment)oBill,o2013:o ooooSTATEMENToOFoOBJECTSoANDoREASONSo o Theo realo estateo sectoro playso ao catalytico roleo ino fulfillingo theo needo ando demando foro housingo ando infrastructureoinotheocountry.oWhileothisosectorohasogrowno significantlyo ino recento years,o ito haso beeno largelyo unregulated,o witho absenceo ofo professionalismo ando standardisationoandolackoofoadequateoconsumeroprotection.o ThoughotheoConsumeroProtectionoAct,o1986oisoavailableo asoaoforumotootheobuyersoinotheorealoestateo market,otheo recourseoisoonlyocurativeoandoisonotoadequateotooaddresso allotheoconcernsoofobuyersoandopromotersoinothatosector.o Theolackoofostandardisationohasobeenoaoconstraintotootheo healthyo ando orderlyo growtho ofo industry.o Therefore,o theo needo foro regulatingo theo sectoro haso beeno emphasisedo ino variousoforums.oo o 2.oInoviewoofotheoabove,oitobecomesonecessaryotoohaveo aoCentralolegislation,onamely,otheoRealoEstateo(Regulationo andoDevelopment)oBill,o2013oinotheointerestsoofoeffectiveo consumero protection,o uniformityo ando standardisationo ofo businesso practiceso ando transactionso ino theo realo estateo sector.oTheoproposedoBilloprovidesoforotheoestablishmento ofotheoRealoEstateoRegulatoryoAuthorityo(theoAuthority)o fororegulationoandopromotionooforealoestateosectoroandotoo ensureosaleoofoplot,oapartmentoorobuilding,oasotheocaseomayo be,oinoanoefficientoandotransparentomanneroandotooprotecto theo interesto ofo consumerso ino realo estateo sectoro ando establisho theo Realo Estateo Appellateo Tribunalo too hearo appealso fromo theo decisions,o directionso oro orderso ofo theo RERA-APPL-54-2025oandootheroo -26-o o o Authority.oo o 3.o Theo proposedo Billo willo ensureo greatero accountabilityo towardso consumers,o ando significantlyo reduceo fraudso ando delayso aso alsoo theo currento higho transactionocosts.oItoattemptsotoobalanceotheointerestsoofo consumerso ando promoterso byo imposingo certaino responsibilitiesoonoboth.oItoseeksotooestablishosymmetryoofo informationo betweeno theo promotero ando purchaser,o transparencyo ofo contractualo conditions,o seto minimumo standardso ofo accountabilityo ando ao fasttracko disputeo resolutiono mechanism.o Theo proposedo Billo willo inducto professionalismo ando standardisationo ino theo sector,o thuso pavingotheowayoforoacceleratedogrowthoandoinvestmentsoino theolongorun.oo o 4.o Theo Realo Estateo (Regulationo ando Development)o Bill,o 2013,o intero alia,o provideso foro theo following,o namely:―oo

(a)o too imposeo ano obligationo upono theo promotero noto too book,o sello oro offero foro sale,o oro inviteopersonsotoopurchaseoanyoplot,oapartmentooro building,o aso theo caseo mayo be,o ino anyo realo estateo projectowithoutoregisteringotheorealoestateoprojecto withotheoAuthority;oo

(b)o too makeo theo registrationo ofo realo estateo projectocompulsoryoinocaseowhereotheoareaoofolando proposedo too beo developedo exceedo oneo thousando squareometersooronumberoofoapartmentsoproposedo toobeodevelopedoexceedotwelve;oo

(c)o too imposeo ano obligationo upono theo realo estateoagentonototoofacilitateosaleooropurchaseoofoanyo plot,o apartmento oro building,oasotheocaseo mayo be,o withoutoregisteringohimselfowithotheoAuthority;oo

(d)otooimposeoliabilityouponotheopromoterotoo payo sucho compensationo too theo allottees,o ino theo manneroasoprovidedounderotheoproposedolegislation,o ino caseo ifo heo failso too dischargeo anyo obligationso imposedoonohimounderotheoproposedolegislation;oo RERA-APPL-54-2025oandootheroo -27-o o o

(e)otooestablishoanoAuthorityotoobeoknownoaso theo Realo Estateo Regulatoryo Authorityo byo theo appropriateo Government,o too exerciseo theo powerso conferredo ono ito ando too performo theo functionso assignedotooitounderotheoproposedolegislation;oo

(f)otheofunctionsoofotheoAuthorityoshall,ointero alia,o include―o (i)o too rendero adviceo too theo appropriateoGovernmentoinomattersorelatingotootheo developmentooforealoestateosector;o(ii)otoo publisho andomaintainoaowebsiteooforecordsoofoallorealoestateo projectso foro whicho registrationo haso beeno given,o witho sucho detailso aso mayo beo prescribed;o (iii)o too ensureocomplianceoofotheoobligationsocastouponotheo promoters,otheoallotteesoandotheorealoestateoagentso underotheoproposedolegislation;oo

(g)otooestablishoanoAdvisoryoCouncilobyotheo CentraloGovernmentotooadviceoandorecommendotheo CentraloGovernmentoon―o(i)o mattersoconcerningo theoimplementationoofotheoproposedolegislation;o(ii)o majoro questionso ofo policy;o (iii)o protectiono ofo consumerointerest;o(iv)ogrowthoandodevelopmentoofo theorealoestateosector;oo

(h)o too establisho theo Realo Estateo Appellateo Tribunalo byo theo appropriateo Governmento too hearo appealsofromotheodirection,odecisionooroorderoofotheo Authorityoorotheoadjudicatingoofficer;oo

(i)otooappointoanoadjudicatingoofficerobyotheo Authorityo foro adjudgingo compensationo undero sectionso12,o14oando16oofotheoproposedolegislation;oo

(j)o too makeo provisiono foro punishmento ando penaltiesoforocontraventionoofotheoprovisionsoofotheo proposedo legislationo ando foro non-complianceo ofo ordersoofoAuthorityooroAppellateoTribunal;oo

(k)otooempowerotheoappropriateoGovernmento too supersedeo theo Authorityo ono certaino circumstanceso specifiedo ino theo proposedo legislation;oo RERA-APPL-54-2025oandootheroo -28-o o o

(l)otooempowerotheoappropriateoGovernmento too issueo directionso too theo Authorityo ando obtaino reportsoandoreturnsofromoit.oo

5.oTheoNotesoonoclausesoexplainoinodetailotheovariouso provisionsocontainedoinotheoRealoEstateo(Regulationoando Development)oBill,o2013.oo

6.oTheoBilloseeksotooachieveotheoaboveoobjectives.o *****o o o o RealoEstateo(RegulationoandoDevelopment)oAct,o2016o (ActoNo.16oofo2016)ooLongotitle:o o AnoActotooestablishotheoRealoEstateoRegulatoryoAuthorityoforo regulationoandopromotionoofotheorealoestateosectoroandotooensureosaleoofo plot,oapartmentoorobuilding,oasotheocaseomayobe,oorosaleooforealoestateo project,o ino ano efficiento ando transparento mannero ando too protecto theo interesto ofo consumerso ino theo realo estateo sectoro ando too establisho ano adjudicatingo mechanismo foro speedyo disputeo redressalo ando alsoo too establisho theo Appellateo Tribunalo too hearo appealso fromo theo decisions,o directionsooroordersoofotheoRealoEstateoRegulatoryoAuthorityoandotheo adjudicatingoofficeroandoforomattersoconnectedotherewithooroincidentalo thereto.o o o xxxo o

2.oDefinitions.—InothisoAct,ounlessotheocontextootherwiseo requires,―o o o xxxo o (d)o"allottee"oinorelationotooaorealoestateoproject,omeanso theopersonotoowhomoaoplot,oapartmentoorobuilding,oasotheo caseomayobe,ohasobeenoallotted,osoldo(whetheroasofreeholdo oroleasehold)o orootherwiseotransferredobyo theopromoter,o andoincludeso theopersonowhoosubsequentlyo acquiresotheo saidoallotmentothroughosale,otransferoorootherwiseobutodoeso noto includeo ao persono too whomo sucho plot,o apartmento oro building,oasotheocaseomayobe,oisogivenoonorent;o o o xxxo o (o)o "company"o meanso ao companyo incorporatedo ando RERA-APPL-54-2025oandootheroo -29-o o o registeredounderotheoCompaniesoAct,o2013o(18oofo2013)o andoincludes,―oo o (i)oaocorporationoestablishedobyoorounderoanyo CentraloActooroStateoAct;oo o (ii)o ao developmento authorityo oro anyo publico authorityo establishedo byo theo Governmento ino thiso behalfounderoanyolawoforotheotimeobeingoinoforce;o o o xxxo o (zg)o"Person"oincludes,―oo

(i)oanoindividual;oo

(ii)oaoHinduoundividedofamily;oo

(iii)oaocompany;oo

(iv)oaofirmounderotheoIndianoPartnershipoAct,o1932o (9oofo1932)oorotheoLimitedoLiabilityoPartnershipoAct,o 2008o(6oofo2009),oasotheocaseomayobe;oo

(v)oaocompetentoauthority;oo

(vi)o ano associationo ofo personso oro ao bodyo ofo individualsowhetheroincorporatedooronot;oo

(vii)oaoco-operativeosocietyoregisteredounderoanyo laworelatingotooco-operativeosocieties;oo

(viii)o anyo sucho othero entityo aso theo appropriateo Governmento may,o byo notification,o specifyo ino thiso behalf;o o o xxxo

(zk)o"promoter"omeans,―oo

(i)o ao persono whoo constructso oro causeso too beo constructedo ano independento buildingo oro ao buildingo consistingo ofo apartments,o oro convertso ano existingo buildingo oro ao parto thereofo intoo apartments,o foro theo purposeoofosellingoalloorosomeoofotheoapartmentsotoo otheropersonsoandoincludesohisoassignees;ooroo

(ii)o ao persono whoo developso lando intoo ao project,o whetherooronototheopersonoalsooconstructsostructureso onoanyoofotheoplots,oforotheopurposeoofosellingotooothero personsoalloorosomeoofotheoplotsoinotheosaidoproject,o whetherowithoorowithoutostructuresothereon;ooro

(iii)o anyo developmento authorityo oro anyo othero publicobodyoinorespectoofoallotteesoof―oo

(a)obuildingsooroapartments,oasotheocaseomayo RERA-APPL-54-2025oandootheroo -30-o o o be,o constructedo byo sucho authorityo oro bodyo ono landsoownedobyothemooroplacedoatotheirodisposalo byotheoGovernment;ooroo

(b)oplotsoownedobyosuchoauthorityoorobodyooro placedoatotheirodisposalobyotheoGovernment,oforo theo purposeo ofo sellingo allo oro someo ofo theo apartmentsooroplots;ooroo

(iv)o ano apexo Stateo levelo co-operativeo housingo financeosocietyoandoaoprimaryoco-operativeohousingo societyowhichoconstructsoapartmentsoorobuildingsoforo itso Memberso oro ino respecto ofo theo allotteeso ofo sucho apartmentsoorobuildings;ooroo

(v)o anyo othero persono whoo actso himselfo aso ao builder,o coloniser,o contractor,o developer,o estateo developeroorobyoanyootheronameooroclaimsotoobeoactingo asotheoholderoofoaopoweroofoattorneyofromotheoownero ofo theo lando ono whicho theo buildingo oro apartmento iso constructedooroplotoisodevelopedoforosale;ooroo

(vi)o sucho othero persono whoo constructso anyo buildingooroapartmentoforosaleotootheogeneralopublic.oo Explanation.—Foro theo purposeso ofo thiso clause,o whereo theo persono whoo constructso oro convertso ao buildingointooapartmentsoorodevelopsoaoplotoforosaleo ando theo persono whoo sellso apartmentso oro plotso areo differentoperson,obothoofothemoshallobeodeemedotoobeo theopromotersoandoshallobeojointlyoliableoasosuchoforo theofunctionsoandoresponsibilitiesospecifiedounderothiso Actoorotheorulesoandoregulationsomadeothereunder;o o o xxxo

(zm)o"realoestateoagent"omeansoanyoperson,owhoo negotiateso oro actso ono behalfo ofo oneo persono ino ao transactiono ofo transfero ofo hiso plot,o apartmento oro building,oasotheocaseomayobe,oinoaorealoestateoproject,o byo wayo ofo sale,o witho anothero persono oro transfero ofo plot,oapartmentoorobuilding,oasotheocaseomayobe,oofo anyootheropersonotoohimoandoreceivesoremunerationooro feesooroanyootherochargesoforohisoservicesowhetheroasoao commissionoorootherwiseoandoincludesoaopersonowhoo introduces,othroughoanyomedium,oprospectiveobuyerso andosellersotooeachootheroforonegotiationoforosaleooro purchaseoofoplot,oapartmentoorobuilding,oasotheocaseo RERA-APPL-54-2025oandootheroo -31-o o o mayo be,o ando includeso propertyo dealers,o brokers,o middlemenobyowhateveronameocalled;o o o xxxo

(zr)o wordso ando expressionso usedo hereino buto noto definedoinothisoActo andodefinedoinoanyolawo forotheo timeobeingoinoforceooroinotheomunicipalolawsoorosucho othero relevanto lawso ofo theo appropriateo Governmento shallohaveotheosameomeaningsorespectivelyoassignedo toothemoinothoseolaws.o o o xxxo o ConsumeroProtectionoAct,o2019o o o o Sectiono2:o

(7)o"consumer"omeansoanyopersonowho―oo

(i)o buyso anyo goodso foro ao considerationo whichohasobeenopaidooropromisedooropartlyopaido andopartlyopromised,oorounderoanyosystemoofo deferredo paymento ando includeso anyo usero ofo sucho goodso othero thano theo persono whoo buyso suchogoodsoforoconsiderationopaidooropromisedo oropartlyopaidooropartlyopromised,oorounderoanyo systemoofodeferredopayment,owhenosuchouseoiso madeo witho theo approvalo ofo sucho person,o buto doeso noto includeo ao persono whoo obtainso sucho goodso foro resaleo oro foro anyo commercialo purpose;ooroo

(ii)o hireso oro availso ofo anyo serviceo foro ao considerationowhichohasobeenopaidooropromisedo oropartlyo paidoandopartlyopromised,ooroundero anyosystemoofodeferredopaymentoandoincludeso anyobeneficiaryoofosuchoserviceootherothanotheo personowhoohiresooroavailsoofotheoservicesoforo considerationopaidooropromised,ooropartlyopaido andopartlyopromised,oorounderoanyosystemoofo deferredo payment,o wheno sucho serviceso areo availedo ofo witho theo approvalo ofo theo firsto mentionedo person,o buto doeso noto includeo ao persono whoo availso ofo sucho serviceo foro anyo commercialopurpose.oo RERA-APPL-54-2025oandootheroo -32-o o o Explanation.—Forotheopurposesoofothisoclause,―oo

(a)o theo expressiono "commercialo purpose"o doeso noto includeo useo byo ao persono ofo goodso boughto ando usedo byo himo exclusivelyo foro theo purposeoofoearningohisolivelihood,obyomeansoofo self-employment;oo

(b)otheoexpressionso"buysoanyogoods"oando "hiresooroavailsoanyoservices"oincludesoofflineo oro onlineo transactionso througho electronico meansoorobyoteleshoppingoorodirectosellingooro multi-levelomarketing;o o o xxxo o o

13.o o Aoperusaloofotheoafore-extractedoprovisionsowouldoshowothato theo Realo Estateo (Regulationo ando Development)o Bill,o 2013o (hereinaftero referredotooaso"Bill"),owasointroducedoinotheoparliamentoinotheointerestsoofo effectiveoconsumeroprotection,ouniformityoandostandardisationoofobusinesso practiceso ando transactionso ino theo realo estateo sector.o Theo proposedo legislationowasotooensureogreateroaccountabilityotowardsoconsumers,oando significantlyoreduceofraudsoandodelaysoasoalsoohighotransactionocosts,owhileo attemptingo too balanceo theo interestso ofo 'consumerso ando promoters'o byo imposingocertainoresponsibilitiesoonoboth.oTheocommercialoobjectiveowaso tooinductoprofessionalismoandostandardisationoinotheorealoestateosector,othuso pavingotheowayoforoacceleratedogrowthoandoinvestmentsoinotheolongorun.oo Theo essenceo ofo theo objectso ando reasons,o extractedo hereinbefore,o findso reflectedoinotheolongotitleoofotheoRERAoAct,owherebyoitoisorecordedotoobeo enactedotooprotectotheointerestoofoconsumersoinotheorealoestateosector.ooo

14.o o Thoughto theo wordo 'consumer'o haso beeno mentionedo ino theo objectsoandoreasons,oaccompanyingotheoBill,oasowelloasoinotheolongotitleoofo RERA-APPL-54-2025oandootheroo -33-o o o theoRERAoActo(ActoNo.16oofo2016),obutothatotermohasonotobeenodefinedo underotheoActoibid.oAoconjointoreadingoofotheoaboveoextractedoprovisionso makesoitoevidentothatotheotermo'consumer'ohasonotobeenoconsciouslyousedo inotheostatute,osooasonototoogiveoaonarrowoconstructionotootheosaidoterm,o underotheoRERAoAct.oTheoconsumersoinotheorealoestateosectorohaveobeeno referredotooaso'allottee',odefinedounderoSectiono2(d)oofotheoRERAoAct.o However,oaoperusaloofotheodefinitionoofotheotermo'allottee'oinorelationotootheo realo estateo project,o wouldo showo thato ito referso too noneo othero thano theo consumersoofotheorealoestateosector.ooTheosaidodefinitionoisoinclusiveoando exhaustiveo ino nature.o Theo termso usedo ino theo saido provisiono haveo beeno definedounderoSectiono2oofotheoActoibidoandosimilarly,otheotermsousedoino theootherodefinitionoclausesoareoalsoodefinedounderoseparateoclauses,owhicho haveo too beo reado togethero foro propero constructiono ofo theo termso ando foro determiningotheotrueointentoofotheolegislature.oTheotermo'allottee'orefersotoo theo'person'otoowhomoaoplotooroapartmentoorobuildingohasobeenoallottedooro soldoorootherwiseotransferredobyotheopromoteroandoincludesotheopersonowhoo subsequentlyo acquireso theo saido allotmento througho sale,o transfero oro otherwise.o'Person'oisodefinedounderoSectiono2(zg)otooincludeoanyoofotheo eighto categorieso mentionedo therein,o whicho includeso ao company.o 'Company'oisodefinedounderoSectiono2(o)otoomeanoaocompanyoincorporatedo andoregisteredounderotheoCompaniesoAct,o2013oandoincludesoaocorporationo establishedo byo oro undero anyo Centralo oro Stateo Acto oro ao developmento authorityooroanyopublicoauthorityoestablishedobyotheoGovernmentoinothiso RERA-APPL-54-2025oandootheroo -34-o o o behalfounderoanyolawoinoforce.oLearnedocounseloforotheoappellantoplacedo relianceoonotheodecisionoofotheoHon'bleoSupremeoCourtoofoIndiaoinoManisho Kumarovs.oUnionoofoIndiaoandoanother,oreportedoino(2021)o5oSCCo1,o whereinotheiroLordshipsoofotheoApexoCourtowhileoconsideringotheoquestiono aso too whato iso too beo theo meaningo ofo theo wordo 'allottees'o undero theo InsolvencyoandoBankruptcyoCode,o2016o(hereinafteroreferredotooaso'2016o Code')o referredo too Sectionso 2(d)o ando 2(zn)o ofo theo RERAo Act,o foro theo reasono thato ano explanationo waso insertedo byo Acto No.26o ofo 2018o w.e.f.o

06.06.2018,o ino Sectiono 5(8)(f)o ofo theo 2016o Code,o whicho provisiono haso sinceo beeno upheldo byo theo Apexo Courto ino Pioneero Urbano Lando ando InfrastructureoLtd.ovs.oUnionoofoIndia,oreportedoino(2019)o8oSCCo416.oo Theorelevantoportionoofotheojudgmentodiscussingotheowordo'allottee'oundero theoRERAoAct,oisoextractedohereunder:o "147.oForoappreciatingotheomeaningoofotheowordo"allottee",oforo theopurposeoofotheoCode,oundoubtedly,oitoisonecessaryotootravelotoo Sectionso2(d)oando2(zn)oofoRERAoforotheoreasonothatoinoSectiono 5(8)(f)oofotheoCode,otheofollowingoExplanationowasoinsertedobyo Acto26oofo2018ow.e.f.o6-6-2018.oThisoprovisionohasobeenoupheldo byothisoCourtoinoPioneero[PioneeroUrbanoLando&oInfrastructureo Ltd.ov.oUnionoofoIndia,o(2019)o8oSCCo416]o:o "5.o(8)(f)o *o *o *o Explanation.―Forotheopurposesoofothisosub-clause―o

(i)o anyo amounto raisedo fromo ano allotteeo undero ao realo estateoprojectoshallobeodeemedotoobeoanoamountohavingotheo commercialoeffectoofoaoborrowing;oando

(ii)otheoexpressions,o"allottee"oando"realoestateoproject"o shallohaveotheomeaningsorespectivelyoassignedotoothemoino clauseso (d)o ando (zn)o ofo Sectiono 2o ofo theo Realo Estateo (RegulationoandoDevelopment)oAct,o2016;"o o RERA-APPL-54-2025oandootheroo -35-o o o

148.oRealo estateo projecto mayo relateo too plots,o apartments,o oro buildingsooroplots/apartmentsoandoplots/buildings.oAsofaroasotheo expressiono "allottee"o iso concerned,o sinceo theo Codeo ino theo ExplanationotooSectiono5(8)(f),oincorporatesotheodefinitionoofotheo wordo "allottee"o ino RERA,o foro theo purposeo ofo theo provisoso ino question,oweomustonecessarilyoseekolightoonlyofromotheoexpressiono "allottee"odefinedoinoSectiono2(d)oofoRERA.o

149.oIfoweobreakodownoSectiono2(d),oito yieldsotheofollowingo componentoparts:o

149.1.oAnoallotteeomayobeoanoallotteeoofoaoplotooroanoapartmento oro ao building.o Ao realo estateo projecto mayo relateo too plotso oro apartmentsoorobuildings;ooroplots/buildingsooroplots/apartments.o

149.2.oAno allottee,o ino theo caseo ofo ano apartment,o whicho expressionoincludesoflats,oamongootherostructures,owouldoincludeo theofollowingocategoriesoofopersons.oItowouldoincludeoaopersonotoo whomotheoapartmentoisoallotted.oItowouldoalsooincludeoaopersonotoo whomotheoapartmentoisosold,owhetheroasofreeholdooroleasehold.o

149.3.oThirdly,o ito wouldo includeo ao persono too whomo theo promoterohasotransferredotheoapartment,ootherwiseothanobyowayoofo aosale.o

149.4.oLastly,oitowouldoincludeopersonsowhoohaveoacquiredotheo allotmentothroughosale,otransferoorootherwise,owithotheocaveatothato itowillonotoincludeoaopersonotoowhomotheoapartmentoisogivenoono rent.oWhateveroweohaveomentionedoaboutoapartments,oisoequallyo trueoquaoallotmentoofoplotsoorobuildings."o o

15.o o Inoviewoofotheoaforesaid,otheorelianceoplacedouponoSectiono 2(zr)otoocontendothatotheodefinitionoofo'consumer'oasocontainedoinoSectiono 2(7)oofotheoConsumeroProtectionoAct,o2019odeservesotoobeoreadointootheo RERAoAct,oisoill-founded.oItoisonotableothatotheowordo'consumer'ohasobeeno sparinglyousedoinotheoRERAoActoandotheosaidotermocannotobeoreadooutoofo RERA-APPL-54-2025oandootheroo -36-o o o context.ooInopithoandosubstance,otheotermo'consumer'ohasobeenoalternativelyo usedoinoreferenceotooallottee.oApartofromofindingomentionoinotheolongotitle,o referenceotootheosaidotermohasoalsoobeenomadeoinotheohereunderoextractedo provisions:o "31.oFilingoofocomplaintsowithotheoAuthorityooro theoadjudicatingoofficer.—(1)oAnyoaggrievedopersonomayo fileo ao complainto witho theo Authorityo oro theo adjudicatingo officer,o aso theo caseo mayo be,o foro anyo violationo oro contraventionoofotheoprovisionsoofothisoActoorotheorulesoando regulationsomadeothereunder,oagainstoanyopromoter,oallotteeo ororealoestateoagent,oasotheocaseomayobe.oo Explanation.—Foro theo purposeo ofo thiso sub-sectiono "person"oshalloincludeotheoassociationoofoallotteesooroanyo voluntaryoconsumeroassociationoregisteredounderoanyolawo forotheotimeobeingoinoforce.oo

(2)o xxx"o o "32.oFunctionsoofoAuthorityoforopromotionooforealo estateosector.—TheoAuthorityoshalloinoorderotoofacilitateotheo growtho ando promotiono ofo ao healthy,o transparent,o efficiento andocompetitiveorealoestateosectoromakeorecommendationso tootheoappropriateoGovernmentoorotheocompetentoauthority,o asotheocaseomayobe,oon,―oo

(a)otoo(f)o xxxo

(g)o measureso too facilitateo amicableo conciliationo ofo disputesobetweenotheo promotersoandotheoallotteesothrougho disputeo settlemento forumso seto upo byo theo consumero oro promoteroassociations;oo

(h)otoo(j)oo xxx"o o "41.o Establishmento ofo Centralo Advisoryo RERA-APPL-54-2025oandootheroo -37-o o o Council.—(1)otoo(3)oxxxoo

(4)oTheoCentraloAdvisoryoCounciloshalloalsooconsisto ofonotomoreothanotenomembersotoorepresentotheointerestsoofo realo estateo industry,o consumers,o realo estateo agents,o constructionolabourers,onon-governmentaloorganisationsoando academicoandoresearchobodiesoinotheorealoestateosector."o o "42.oFunctionsoofoCentraloAdvisoryoCouncil.—(1)o TheofunctionsoofotheoCentraloAdvisoryoCounciloshallobeotoo adviseoandorecommendotheoCentraloGovernment,―oo

(a)otoo(b)oxxxoo o(c)otowardsoprotectionoofoconsumerointerest;oo

(d)otoo(e)oxxx"o o "43.o Establishmento ofo Realo Estateo Appellateo Tribunal.—(1)otoo(4)ooxxxo

(5)o Anyo persono aggrievedo byo anyo directiono oro decisiono oro ordero madeo byo theo Authorityo oro byo ano adjudicatingo officero undero thiso Acto mayo prefero ano appealo beforeotheoAppellateoTribunalohavingojurisdictionooverotheo matter:oo Providedothato...oxxxo Explanation.—Foro theo purposeo ofo thiso sub-sectiono "person"o shallo includeo theo associationo ofo allotteeso oro anyo voluntaryo consumero associationo registeredo undero anyo lawo forotheotimeobeingoinoforce."o o Butoforotheoaforesaidoreferences,otheotermo'consumer'ohasonotobeenousedo underotheoRERAoAct,osooasotooimpressothisoCourtoforoinvokingoSectiono 2(zr)oibidotooimportoandoapplyotheomeaningoassignedotootheosaidotermoundero theoConsumeroProtectionoAct,o2019.oo

16.o o Theo appellant/complainanto therebyo satisfieso theo essentialo RERA-APPL-54-2025oandootheroo -38-o o o ingredientsoofoano'allottee'oinorelationotootheorealoestateoprojectoinoquestion,o afteroitsonameowasosubstitutedoinotheoBuyer'soAgreement,oi.e.othroughooneo ofo theo modeso recognisedo undero theo RERAo Act,o whicho nomination/substitutionohasobeenoacknowledgedobyotheorespondentovideoitso letterodatedo30.12.2015.oTherefore,obeingoanoallottee,otheoappellantowaso wellowithinoitsorightsotooinvokeotheojurisdictionoofotheoAuthorityounderotheo RERAoAct.oo

17.o o Thisobringsousotooyetoanotheroaspectoofotheomatter,owhichohaso beeno hotlyo contestedo byo theo rivalo parties.o Learnedo counselo foro theo respondentohadovehementlyoarguedothatoono21.08.2017,oaoMemorandumoofo Understandingo(hereinafteroreferredotooaso"MOU")ohadobeenoenteredointoo betweeno theo appellant,o respondento ando theiro respectiveo entities,o witho regardotooCollaborationoAgreementso1oandoCollaborationoAgreementso2.o TheorecitalsoofotheosaidoMOUohadobeenoreferredotoocontendothatocertaino obligationsowereofirstorequiredotoobeofulfilledobyotheoappellantosooasotooseeko enforcementoofotheoBuyer'soAgreementoandotheosaidoMOUohadonovatedo theoearlierocontract,oi.e.otheobuyers'soagreement,owhichowasonotoliableotoobeo enforced.o TheosaidoMOUo haso ano arbitrationo clauseo andoino caseoofoanyo disputeosoughtotoobeoraised,oitohasotoobeofirstogotoadjudicatedobyofollowingo theodueoprocessoofoarbitration.o

18.o o Onotheootherohand,olearnedoseniorocounseloforotheoappellanto haso submittedo thato theo appellanto iso noto ao contractingo partyo too theo saido MOU.ooTheoappellantoisoalsoonotooneoofotheootherocompaniesoreferredotooaso RERA-APPL-54-2025oandootheroo -39-o o o theo'entities'oofotheorespectiveoparty,oi.e.otheoappellantoorotheorespondent.o Moreover,otheounitsowhichoareosubjectomatteroofotheopresentoappealsofindo mentionoinotheoMOUoonlyotooconfirmothatotheotransactionsoareofreeofromo anyodispute,ohence,otheosameoareonotoadverselyoaffected.oTheoMOU,oiso thus,onotobindingouponotheoappellantoandocannotoimpingeouponoitsovestedo rights.ooo

19.o o AoperusaloofotheoMOUodatedo21.08.2017oshowsothatoitohaso beenoenteredointoobetweenotheorespondentoandoitsoentitiesospecifiedothereino asooneopartyoandoMGFoDevelopmentoLimitedoandoitsoentitiesospecifiedo thereinoasotheopartyoofotheootheropart.ooTheoparticularsoofotheocontractingo parties,oasoculledooutofromotheoMOU,oareodetailedohereunder:o EMAARoentitieso:o

1.l EmaaroMGFoLandoLimitedo

2.l NayasoProjectsoPrivateoLimitedo

3.l ToffoBuildersoPrivateoLimitedo

4.l ModularoEstateoPrivateoLimitedo o MGFoEntitieso:o

1.l MGFoDevelopmentoLimitedo

2.l VairagioProjectsoPrivateoLimitedo

3.l ManbhavoProjectsoPrivateoLimitedo

4.l GyandarshinioEximoPrivateoLimitedo o

20.o o Statutoryoprincipleoofo'novation'oisoenshrinedounderoSectiono 62oofotheoIndianoContractoAct,o1872,owhichoprovidesoasounder:o Contractsowhichoneedonotobeoperformedo

62.o Effecto ofo novation,o rescission,o ando alterationo ofo contract.—Ifotheopartiesotooaocontractoagreeotoosubstituteoaonewo contractoforoit,oorotoorescindooroalteroit,otheooriginalocontract,oneedo RERA-APPL-54-2025oandootheroo -40-o o o notobeoperformed.o Illustrationso

(a)o Ao oweso moneyo too Bo undero ao contract.o Ito iso agreedo betweeno A,o Bo ando Co thato Bo shallo thencefortho accepto Co aso hiso debtor,oinsteadoofoA.oTheooldodebtoofoAotooBoisoatoanoend,oandoao newodebtofromoCotooBohasobeenocontracted.oo

(b)oAoowesoBo10,000orupees.oAoentersointooanoarrangemento withoBoandogivesoBoaomortgageoofohiso(A's)oestateoforo5,000orupeeso inoplaceoofotheodebtoofo10,000orupees.oThisoisoaonewocontractoando extinguishesotheoold.oo

(c)oAoowesoBo 1,000orupeesounderoao contract.oBoowesoCo 1,000o rupeeso Bo orderso Ao too credito Co witho 1,000o rupeeso ino hiso books,obutoCodoesonotoassentotootheoarrangement.oBostilloowesoCo 1,000orupees,oandonoonewocontractohasobeenoenteredointo.o o Aoperusaloofotheoprovisionsoreproducedohereinaboveowouldoshowothatoino orderotooinvokeotheoprincipleoofonovationoofocontract,oitoisosineoquaonono thatotheosubsequentocontractohasotoobeobetweenotheosameoparties.oInotheo presentocase,oconcededlyotheoappellantoisonotoaopartyotootheoMOUodatedo

21.08.2017.oNoomaterialohasobeenobroughtotootheonoticeoofothisoCourtotoo demonstrateofromotheorecordothatotheoappellantowasoinofactoaocontractingo partyotootheoMOUoandohence,otheoearlierocontract,oi.e.obuyer'soagreement,o needo noto beo performed.o o Moreover,o theo MOUo doeso noto showo too beo completeosubstitutiono ofotheo buyer'so agreement.o Theo Hon'bleo Supremeo Courto ino Latao Constructiono ando otherso vs.o Dr.o Rameshchandrao RamniklaloShahoandoanother,o(2000)o1oSCCo586,oheldoasounder:o o"10.oOneo ofo theo essentialo requirementso ofo "novation",o aso contemplatedo byo Sectiono 62,o iso thato thereo shouldobeocompleteosubstitutionoofoaonewocontractoinoplaceo RERA-APPL-54-2025oandootheroo -41-o o o ofotheoold.oItoisoinothatosituationothatotheooriginalocontracto needonotobeoperformed.oSubstitutionoofoaonewocontractoino placeoofotheooldocontractowhichowouldohaveotheoeffectoofo rescindingoorocompletelyoalteringotheotermsoofotheooriginalo contract,o haso too beo byo agreemento betweeno theo parties.o Ao substitutedocontractoshouldorescindooroalterooroextinguishotheo previousocontract.oButoifotheotermsoofotheotwoocontractsoareo inconsistentoandotheyocannotostandotogether,otheosubsequento contractocannotobeosaidotoobeoinosubstitutionoofotheoearliero contract."o o

21.o o Learnedo counselo foro theo respondento alsoo arguedo thato theo transactionso coveredo undero theo buyer'so agreemento ino questiono ando theo MOU,o areo sub-judiceo beforeo theo Nationalo Companyo Lawo Tribunal,o PrincipaloBench,oNewoDelhio(hereinafteroreferredotooaso"NCLT"),oinore:o EmaaroHoldingsoIIovs.oEmaaroMGFoLandoLimitedoandoothers,oandohence,o ifothereoisoanyodisputeoemanatingofromotheobuyer'soagreement,oasonovatedo byotheoMOU,otheoappellantooughtotoohaveoinvokedotheoarbitrationooclauseoino theoMOUoandoaccordingly,osoughtoitsoremedyounderotheoprovisionsoofotheo ArbitrationoandoConciliationoAct,o1996.oAocopyoofosaidopetitionohasobeeno appendedofromopageo394oinoRERA-APPLoNo.o55oofo2025.ooItowasofurthero arguedothatotheoallotmentomadeovideotheobuyer'soagreement,owhichostandso novated,ohasobeenoexaminedobyotheolearnedoTribunalotooformoanoopiniono ando thereafter,o rightlyo concludeo thato theo saido transactionso lacko transparencyoandoareonotooutsideotheorealmoofosuspicionoandotheoentireo disputeoisobetweenopromoters,owhooafterosplitting,ostartedoproxyolitigation.o RERA-APPL-54-2025oandootheroo -42-o o o

22.o o Itohasoalreadyobeenonoticedohereinaboveothatotheoappellantoiso notoaopartyotootheoMOUoandothus,ocannotobeoaskedotoobeorelegatedotooao disputeosettlementomechanismotoowhichoitohasonotoconsented.ooAoperusaloofo theopetitionobeforeotheoNCLTowouldorevealothatoonlyotheofollowingoreliefo hasobeenoclaimedotherein:o "I.o MAINoRELIEF(S)o

1.oo Ino theo factso ando circumstanceso aforesaid,o theo Petitioner,o intero aliao prayso thato thiso Hon'bleo Tribunalomayobeopleasedoto:o a)oo DirectoRespondentoNo.o2otoo8oandotheirorelatedooro associatedo entitieso too compensateo Respondento No.o 1o ando theo Petitionero too theo extento ofo losso causedodueotootheofraudulentoandoillegaloactsoofo RespondentoNo.o2otoo8,oalongowithointerestoatotheo rateoofo18%ofromotheodateooforespectiveoloss,oaso mayobeodeterminedobyothisoHon'bleoTribunal;o b)oo passosuchootheroorofurtheroordersoasothisoHon'bleo Tribunalo mayo deemo fito ando propero ino theo factso andocircumstancesoofotheocaseoandoinotheointeresto ofojustice."o o Moreover,oinotheopleadingsothereof,othereoisonoomentionoofotheoprojectoino questiono oro witho regardo too anyo financialo losso causedo byo excessiveo discountsoasohasobeenoarguedoinoappeal.oParao161oofotheosaidopetitionoiso extractedohereunderofororeference:o "D.oo Otherotransactionsoofodubiousonatureocausingo financialolossotootheoCompanyo o I.oo ExcessiveoDiscountso RERA-APPL-54-2025oandootheroo -43-o o o

161.oo Further,otheorecentoinvestigationohasorevealedothato RespondentoNo.1,ohasogivenounusualodiscountoofo overoapproximatelyoINRo5,400,000,000o(Rupeeso FiveoHundredoFortyoCrore)oforotheosaleoofoovero oneothousandoeightohundredo(1,800)ounitsospreado acrossofollowingoprojects:o a)ooApartmentsoatoPalmoSpringso b)ooCapitaloTowerso c)ooColonnadeo d)ooCommerceoParko e)ooDigitaloGreens"o o

23.o o Learnedocounseloforotheoappellantohasodrawnotheoattentionoofo thiso Courto too theo categorico stando takeno byo theo respondento beforeo theo CommissioneroofoIncome-taxo(Appeals)owithoregardotooadditionomadeoforo theoAssessmentoYearo2013-14,oinotheoappealopreferredoono31.12.2016,oi.e.o mucho aftero executiono ofo theo Demergero Frameworko Agreemento datedo

13.04.2016,o ino whicho theo Appointedo Dateo haso beeno mentionedo aso

30.09.2015oandotheoEffectiveoDatedoaso31.07.2018.oTheorelevantogroundo takenobeforeotheoCITo(A),oregardingowhichotransactionsoadditionohadobeeno made,opertainotootheosubjectomatteroofoRERA-APPL-56-2025oandoRERA-APPL-70-2025,oandoisoreproducedohereunder:o RERA-APPL-56-2025o(M/soPadampuroNirmanoPvt.oLtd.ovs.o EMAARoIndiaoLtd.)oatopageo425o o "5)o AdditionoofoRs.1,76,91,170o o TheoLearnedoAOohasoerredoinolawoandoonofactsoofo theocaseoinomakingoanoadditionoonotheogroundothato RERA-APPL-54-2025oandootheroo -44-o o o theoappellantocompanyohasotransferredo2ounitsoino itso projecto 'Emreldo Hills'o too Padampuro Nirmano Privateo Limitedo ("Padampur")oato basicopriceoofo Rs.o1oeach.o o TheoLearnedoAOohasoerredoinoignoringotheofacto thatotheoappellantocompanyohasoreceivedoserviceso fromo Padampuro ando theo unitso haveo beeno transferredoasoaoconsiderationoforosuchoservices.o o TheoLearnedoAOohasoerredoinomakingoanoadditiono withoreferringoanyolegaloprovisionsoofotheoAct.o o Ino theo courseo ofo assessmento proceedings,o theo LearnedoAOohasodisallowedoRs.o1,76,91,170oono theogroundothatotheoappellantohasotransferredoplotso inoEmeraldoHillsoProjecto@oRs.o1/-operoplotowhicho iso logicallyo noto possibleo foro anyo companyo ando doeso noto flowo fromo theo Jointo Developmento Agreemento enteredo intoo betweeno theo appellanto ando M/so Padampuro Nirmano Pvt.o Ltdo ('Padampur').o o Relevanto factso ino relationo too eacho expenseo areo mentionedobelow:o o PadampuroaocompanyoincorporatedoasoperoIndiano Lawsohavingoitsoregisteredoofficeoato7/21,oAnsario Road,o Daryaganj,o Delhi.o Padampuro waso incorporatedo witho theo maino objectiveo ofo theo construct,odevelop,obuild,opurchase,osaleoandodealo ino realo estate,o land,o building,o commercial,o Industrialoandoresidentialocomplexes.o o Padampurothroughoitsodirectorsoenteredointoojointo ventureoinorelationotooprocurement,oacquisitionooro RERA-APPL-54-2025oandootheroo -45-o o o liasioningo foro lando ofo variouso projectso ofo theo appellant.o Ino thiso regard,o Padampuro regularlyo heldo meetings/discussiono witho theo managemento ofotheoappellantoforofinalizingotheodealsoofolands.o o o o Padampuro helpedo theo managemento ofo theo appellantoinotheofollowingomannero–ooo ?oo Identifyingotheolandobankoforotheoappellant.o ?oo Negotiatingowithotheosellers.o ?oo Discussiono witho theo managemento foro theo prospectiveoprojectsotoobeoundertakenotheo saidolands.o ?oo Actingo aso ao facilitatoro foro finalizingo theo dealoforotheoprocurementoofotheoland.o ?oo Gettingotheolandoownershipotransferredoino favoroofotheoappellant.o ?oo Providingo theo wayo forwardo theo developmentoofotheoproject.o o o Theo aforesaido activitieso wereo providedo byo Padampurotooappellantoforotheoacquisitionoofolando forotheovariousoprojects.oThisoinoturnohelpedotheo appellantotooprocureotheolandoonotimeoandoexecuteo theoprojectoonotimelyobasis.oAgainstotheosame,oito wasomutuallyoagreedobetweenotheoappellantoando Padampurotooprovideo2oplotsoadmeasuringo758osq.o yardo(each)oinotheoprojecto'EmeraldoHills'oforotheo serviceso ofo Padampur.o Foro theo contractualo purpose,otheoconsiderationoforotheosaidolandowaso fixedoatoINRo1/-oeachoasotheosameowasoalreadyo providedo ino formo ofo aforesaido serviceso byo Padampur.o o Further,otheoservicesoprovidedobyoPadampurowereo RERA-APPL-54-2025oandootheroo -46-o o o necessaryoforotheoappellantoforotimelyodeliveryoofo projects.o Anyo delayo ino completiono ofo projecto wouldonotoonlyohinderotheoappellantofinanciallyo buto alsoo effecto theo reputationo ofo theo appellant.o Thereforeoinoorderotooexpediteotheosameoitowaso necessaryo foro theo appellanto too payo serviceso chargesotooPadampur.o o Theo considerationo paido byo theo appellanto too Padampuroisojustifiedoforotheoservicesoprovidedo byotheoPadampur.oThereforeotheoLearnedoAOohaso erredo ino lawo ando ino factso ofo theo caseo byo contendingothatotheopaymentoofoconsiderationo@o Rs.o1/-operolotoisonotologicaloandodoesonotoflowo fromotheoJDAoenteredobetweenoPadampuroandotheo appellant."o o Itoisofurtherosubmittedothatotheoallotmentsoinotheosupraotwoocasesohaveobeeno madeo pursuanto too ao Courto settlemento ando hence,o theo observationso regardingojustifiableoconsiderationoinotheoimpugnedoorderoareoliableotoobeo setoaside.o

24.o o Beothatoasoitomay,oitoisonotableothatotheobasicoinstrument,oi.e.o buyer'soagreement,owithoregardotoowhichotheocomplaintohadobeenofiledo beforeo theo Authority,o iso noto showno too beo ino disputeo beforeo anyo othero competentoforumohavingojurisdictionooverotheoallegedodispute,oasoisosoughto toobeosketchedobeforeothisoCourtoinoappeal.oNeedlessotoosayothatounlessotheo instrumentoorodocument,owhichoisocalledoinoquestion,oisochallengedobeforeo anoappropriateoforumoandoisosetoaside,otheosameocannotobeoadverselyoheldo tootheodisadvantageoofotheopersonointendedotoobeobenefitedofromoit.oo RERA-APPL-54-2025oandootheroo -47-o o o

25.o o Besidesotheoabove,otheolearnedoTribunalohasoconsciouslyonoto assumedo jurisdictiono thato isonoto specificallyo providedounderotheo RERAo Act.oItowouldobeousefulotooreferotootheounderoextractedoobservationsomadeo byotheolearnedoTribunaloinotheoimpugnedoorderodatedo21.02.2025.o "20.o ...o ...o Thereo cano beo noo hesitationo ino holdingo thato possibilityo ofo sucho transactionso beingo dubiouso cannoto beo ruledoout.oItoisoinexplicableohowotransfersoofosuchovaluableo unitso waso madeo practicallyo withouto anyo consideration.o Ino case,oitowasoaocommercialotransactionobetweenotwooparties,o itoisoexpectedothatotheosameowouldobeoforosomeojustifiableo consideration.oInotheoabsenceoofosame,oitohasotoobeoheldothato suchodealsolackotransparencyoandoareonotooutoofotheorealmoofo suspicion.o Besides,o entireo disputeo appearso too beo betweeno promotersowhooafterosplitostartedothisoproxyolitigation.oTheyo embroiledotheoregulatoryomechanismo('theoAuthority')oinoao disputeooverowhichoitohadonoojurisdiction."o o "22.oo o Thougho thereo iso nothingo too showo thato transactionsowereocarriedooutoinoaotransparentomanner,othiso Tribunalodoesonotointendotooexpressoanyofinaloopinionoono theirovalidityoasotheyodoonotofallowithinotheoambitoofotheoAct.o Theocomplainant,obeingoentityoofoMGFD,ocannotobeotreatedo aso 'allottee'.o Co-promoterso invokedo jurisdictiono ofo theo Authorityothroughoitsoentitiesoafterode-mergerotookoplaceoino theoyearo2018.oThereafter,otwoocompaniesocameointoobeingo EmaaroIndiaoLimitedoandoMGFD.oItoisoinexplicableoasotoo howosuchoao disputeocanobeosaidotoo beoaodisputeobetweeno consumeroandopromoter."o o "23.oo o Besides,othereoappearsotoobeosubstanceoinotheo pleao ofo theo appellanto thato theo contract,o whicho iso noto ono 'arm's-lengthobasis'oandonotoononormalocommercialotermsoiso RERA-APPL-54-2025oandootheroo -48-o o o noto sustainable.o However,o thiso Tribunalo refrainso fromo expressingoanyofinaloopinionoonothisoissueoasowell,oasoitoiso notodirectlyoseizedothereof."o o "26.oo o Ino theo instanto case,o thereo iso noo explanationo forthcomingowhyostepsowereoneverotakenofororegistrationoofo theoproject,oevenoafterooccupationocertificateowasograntedobyo theocompetentoauthorityoono08.01.2018.oInocaseotheoparento companyointendedotoosellotheoplotsobyowayoofocompetitiveo process,oitowouldonecessarilyohaveoappliedofororegistrationo undero theo Act.o Theo veryo facto thato ito dido noto doo soo lendso credenceo too theo viewo thato transactionso wereo primarilyo betweeno twoo contractingo partieso whicho wereo earliero co-promoters.o Ino caseo sucho transactionso wereo too shello companieso(transferee)owhichowereonotoentirelyounrelatedotoo theotransferorocompany,oseriousodoubtsowouldoariseowhethero suchotransfersowereovalidoorosham.oNooopinion,ohowever,oiso beingoexpressedoonothisoissueoasotheodisputeoisooutsideotheo purviewoofotheoAct."o o

26.o o Ono ao conspectuso ofo theo aforesaid,o theo impugnedo ordero primarilyobeingobasedoonotheoassumptionothatotheoAuthorityodidonotohaveo jurisdictionotooentertainotheocomplaint,oasotheoprojectoinoquestionohadonoto beenoregisteredounderoSectiono3(1)oofotheoRERAoAct,ocannotobeosustained.oo

27.o o Accordingly,otheopresentoappealoisoallowedoandotheoimpugnedo orderodatedo21.02.2025oisosetoaside.ooTheomatteroisoremittedotootheolearnedo Tribunaloforoadjudicationoafresh.oAnyoobservationsomadeohereinabove,oareo onlyo foro theo purposeo ofo adjudicationo ofo theo presento appeal(s)o ando theo learnedoTribunalowillonotobeoinfluencedotherefrom,oandowouldobeofreeotoo RERA-APPL-54-2025oandootheroo -49-o o o arriveoatoitsoownoindependentoconclusions,oonotheomeritsoofotheocaseoaftero hearingoalloconcerned.ooTheopartiesowouldobeoatolibertyotooadditionallyoraiseo anyo challengeo too theo foundationalo instrument(s)o beforeo theo competento forum,oasopermissibleoinolaw.o

28.o o Theopresentoappealoisodisposedoofoaccordingly.o

29.o o Pendingoapplication(s),oifoany,oshalloalsoostandoclosed.o o o o o (VIKASoSURI)o Octobero30,o2025o JUDGEo sumit.ko o o o o o Whetherospeaking/reasonedo:o o Yeso/oNoo o o WhetheroReportableo:o o o Yeso/oNoo o