Delhi HC quashes mandatory RERA nod for construction

Dated on: Monday 13th June 2022

The Delhi High Court ruled on Thursday that the Real Estate Appellate Tribunal lacks the authority to commence suo motu proceedings and overturned one such decision, which barred any construction activity in the capital unless the project was registered with RERA.

"This court finds itself unable to appreciate the omnibus direction which ultimately came to be issued by the appellate tribunal. The appellate tribunal clearly and abjectly failed to bear in mind the true ambit of Section 3. It procedded on the incorrect and unfounded premise that all projects were liable to be complusorily registered under the Act," said justice Yashwant Varma, throwing aside two rulings made by the tribunal last year.

The HC stated that the tribunal's suo moto proceedings "practically injuncted any construction activities in the NCT of Delhi."

Summarized: The Real Estate Appellate Tribunal lacks the authority to commence suo motu proceedings, says the Delhi High Court. The tribunal's suo moto proceedings "practically injuncted any construction activities in the NCT of Delhi," said the court. It threw aside two rulings made by the tribunal last year.

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