In a significant ruling reinforcing transparency and accountability in the real estate regulatory framework, the Delhi Real Estate Appellate Tribunal (REAT) has cautioned the Real Estate Regulatory Authority (RERA) against keeping applications for project registration pending for prolonged periods. The tribunal observed that such delays not only violate the statutory timelines prescribed under the Real Estate (Regulation and Development) Act, 2016, but also invite allegations of corruption and administrative mischief.
The tribunal categorically directed that RERA must either grant or reject project registration within 30 days from the date of receipt of the application, strictly in accordance with Section 5 of the RERA Act.
Background of the Case: DDA vs Delhi RERA
The ruling was delivered while adjudicating an appeal filed by the Delhi Development Authority (DDA) against a penalty of ₹10 lakh imposed by Delhi RERA. The penalty was levied for an alleged delay in obtaining registration for a multi-storey housing project in Dwarka.
Delhi RERA had faulted DDA for filing an incomplete application, whereas DDA argued that its application, submitted online on 28 February 2023, remained pending with RERA for several months without any action or communication.
Tribunal’s Observation: No Distinction Between Complete and Incomplete Applications
Tribunal member Lorren Bamniyal made a crucial legal observation that the RERA Act does not distinguish between a “complete” and an “incomplete” application for the purpose of timelines under Section 5.
The tribunal held that there was no justification for RERA to keep the application pending for nearly seven months, only to later point out deficiencies and impose a penalty on the promoter.
The bench noted that if RERA found deficiencies in the application, it ought to have acted within the statutory period instead of allowing the application to remain in limbo.
Corruption Concerns and Administrative Accountability
In strong words, the tribunal stated that long delays in dealing with registration applications are an open invitation to allegations of corruption, which must be avoided through prompt, time-bound decision-making.
The order emphasized that regulatory authorities must act strictly within the timelines provided under the statute, and failure to do so undermines the objectives of RERA, which include transparency, predictability, and ease of doing business in the real estate sector.
Deemed Registration: A Statutory Safeguard for Promoters
To prevent future delays, the tribunal issued clear directions to RERA to ensure strict compliance with Section 5 of the Act. It reiterated the statutory concept of “deemed registration”, stating that:
If RERA fails to either grant registration or reject the application within 30 days, the promoter shall be entitled to deemed registration. In such cases, RERA must, within seven days thereafter, provide:
• A registration number
• Login ID and password
• Access to the RERA website to create the project web page and upload project details
The tribunal also clarified that any rejection of registration must be preceded by a hearing, ensuring compliance with principles of natural justice.
Key Takeaway for Builders, Promoters, and Authorities
This ruling serves as an imhttps://realestateacademy.in/portant precedent for both real estate authorities and promoters. While promoters are expected to submit accurate and complete applications, RERA authorities cannot delay decisions indefinitely under the guise of incomplete documentation.
The decision reinforces that statutory timelines under RERA are mandatory, not directory, and non-compliance can expose the authority itself to judicial scrutiny.
The Delhi Real Estate Appellate Tribunal’s ruling is a timely reminder that regulatory efficiency is as important as regulatory oversight. By reaffirming the 30-day timeline and warning against administrative delays, the tribunal has strengthened the credibility of the RERA framework and sent a clear message that procedural lapses by authorities will not be condoned.
