Allottee has the discretion to seek refund in case of delay from Promoter

The U.P. Real Estate Appellate Tribunal reaffirmed that under Section 18 of the RERA Act, the right to seek refund in case of delay vests exclusively with the allottee and remains unqualified. Even in the absence of a formal Builder Buyer Agreement, a promoter cannot evade liability where delay in completion is established. The decision underscores that once the allottee opts to withdraw, the promoter is bound to refund the entire amount with statutory interest, reinforcing the consumer-centric framework of the Act.

Relief from Court where there is “inequality of bargaining power” between contracting parties.

Courts may intervene in contractual arrangements where there exists a clear inequality of bargaining power between parties. This case from the Uttar Pradesh Real Estate Appellate Tribunal examines whether one-sided builder agreements can bind allottees, especially in delayed possession and cost escalation disputes. It highlights how statutory protections under the Real Estate (Regulation and Development) Act, 2016 override unfair contractual terms and reinforce consumer rights in real estate transactions.

There should be an end of litigation. Delay Condonation Rejected.

In the Uttar Pradesh Real Estate Appellate Tribunal† (Before D.K. Arora, Chairman and Tej Bahadur Singh, Member (Judicial) and Rajiv Misra, Member (Administrative)) Appeal No. (D) 480/2020 Lucknow Development Authority … Appellant; Versus Anupama Singh … Respondent. And Appeal No. (D) 481/2020 Lucknow Development Authority … Appellant; Versus Murli Manohar Verma … Respondent. Appeal No. (D) 480/2020 and Appeal No. (D) 481/2020 Decided on June 11, 2021, [Disposal … Read more

Return of Money order can be made only at the interest rate prescribed in the RERA Act and Rules at MCLR+1%

The U.P. Real Estate Appellate Tribunal clarified that interest on refund under the RERA framework must align with the statutory rate prescribed in the Act and Rules, i.e., MCLR + 1%, and not arbitrary contractual rates such as 24%. Emphasising the consumer-protective scheme of the Act, the Tribunal held that interest under Section 18 is compensatory in nature and must balance equities between promoter and allottee, ensuring fairness while rejecting one-sided contractual stipulations.

Promoter’s Appeal can’t be heard till it deposits the full amount.

A promoter’s appeal under the Real Estate (Regulation and Development) Act, 2016 cannot be entertained unless the statutory pre-deposit under Section 43(5) is first complied with. This decision of the U.P. Real Estate Appellate Tribunal reiterates that deposit of the entire amount payable to the allottee—including interest and compensation—is a mandatory condition precedent, leaving no discretion with the Tribunal. The ruling reinforces the consumer-protective framework of RERA by preventing promoters from delaying enforcement through appeals without first securing the allottee’s dues.

RERA is applicable to all real estate projects, even if a completion certificate is issued to the project.

RERA applicability after completion certificate legal analysis India

This article examines the scope of the Real Estate (Regulation and Development) Act, 2016, and clarifies that RERA applies even to projects with a completion certificate where statutory obligations of promoters continue. It analyses the jurisdiction of the Regulatory Authority over unregistered and exempted projects, particularly in cases involving unsold inventory and post-completion liabilities such as conveyance, possession, and defect rectification. The discussion is anchored in the decision of *Lucknow Development Authority v. Uma Shankar Dubey*, highlighting that exemption from registration does not exclude projects from the substantive framework of the Act.

How and where to challenge the Election of Society / Board of Management / AOA?

Introduction A Group of persons may form an association and give it a formal structure by registering it as a society under the Societies Registration Act, 1860.  Under different statutes associations are mandatorily to be formed and be registered as a society. Such association are often referred as statutory associations.  The affairs of such statutory … Read more

How to execute Recovery Certificate issued by UP-RERA against a Builder?

Introduction In a report published by the Times of India in its online edition dated 03.10.2020 revealed that according to an RTI (filed by Mr. Anand Mishra, Advocate) response, U.P. RERA till RTI reply dated 14.09.2020 disposed of 21200 complaints of a total of 28438 complaints filed in the entire state.  But it has not … Read more

Are Shops built in Group Housing in UP are part of common area

Introduction 1.       Due to rising population clusters of large apartment buildings through Group Housing are developing in U.P.  To regulate the construction of such Group Housing and apartments therein, help of mainly three legislations are taken which is U.P. Apartment (Promotiion of Construction, Ownership & maintenance) Act, 2010, Urban Planning and Development Act, 1973 and … Read more

All about Election of Apartment Owners Association

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Author: Prashant KanhaAdvocate-on-Record, Supreme Court of IndiaReal Estate and Apartment Law Specialist This article is specific to laws in Uttar Pradesh and also has a video presentation | Download eManual on Apartment Introduction As per the information available on the Website of U.P. RERA there are around 2800 registered Group Housing projects.  Similarly, by an … Read more

What is a Deed of Declaration under U.P. Apartment Act ?

This article is specific to law in Uttar Pradesh and has a video presentation | Download eManual on Apartment Introduction The declaration is defined in Section 3 (m) of U.P. Apartment (Promotion of Construction, Ownership and Maintenance) Act 2010 to mean declaration referred to in Section 12 of the said Act. The contents of declaration … Read more

Handover Process of Common Areas and Facilities from Promoter to AOA

This article is specific to the law in Uttar Pradesh. The article has a video presentation. | Download eManual on Apartment Introduction The U.P. Government enacted U.P. Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010, (“2010 Act)”Statement of Objects and Reasons whereof are:            “Housing is a basic human necessity and the quality of … Read more