Right to Refund even if OC/CC issued in Real Estate Project and other buyers taking Possession

up real estate appellate tribunal

This judgment by the U.P. Real Estate Appellate Tribunal clarifies a critical legal position under the RERA framework: the mere issuance of an Occupation Certificate (OC) or Completion Certificate (CC), or possession taken by other allottees, does not extinguish the statutory right of an allottee to seek refund under Section 18 of the Real Estate (Regulation and Development) Act, 2016.

Where there is inordinate delay, incomplete development, or absence of promised amenities, an allottee cannot be compelled to accept possession in a partially developed or non-habitable project. The Tribunal reaffirmed that the right to exit the project and claim refund with interest is an independent and enforceable remedy, irrespective of the stage of construction or selective occupancy by other buyers.

This ruling has significant implications for homebuyers facing delayed real estate projects, particularly in cases where developers rely on partial OC/CC to deny refund claims.

Why & When Auction under RERA recovery certificates may frustrate?

This article examines the legal limitations in enforcing RERA recovery certificates through auction of promoters’ properties. It argues that amounts recoverable under RERA are not “arrears of land revenue” in substance, and therefore cannot override secured interests such as mortgages and debenture rights. Drawing on key High Court precedents, the piece highlights how indiscriminate auctions by revenue authorities can frustrate homebuyers and create further litigation, and suggests a more structured approach by RERA to identify encumbrance-free assets before issuing recovery certificates.

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 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

Uttar Pradesh Real Estate Appellate Tribunal Regulations, 2019

UTTAR PRADESH REAL ESTATE APPELLATE TRIBUNAL REGULATIONS 2019 Download PDF or .docx file WHEREAS it is expedient to frame regulations, the Uttar Pradesh Real State Appellate Tribunal in exercise of the powers conferred by Sub-section 2 of Section 53 of the Real Estate (Regulations and Development) Act, 2016, read with Sub-rule (3) of Rule 25 … Read more

Forfeiture of booking amount by builder amounts to unfair and unreasonable Practice

In a recent judgement passed by Maharashtra RERA Appellate tribunal[1] against the real estate builder confirmed that the arbitrary and one-sided interpretations make the contractual transaction unfair and unreasonable. According to the tribunal, forfeiture of the booking amount is improper and against the provisions of RERA Act, 2016 and for this reason, the builder was … Read more

Best Legal Practices to Execute RERA Orders

Best Legal Practice to Execute RERA Order in Uttar Pradesh This article contains video explanation. Watch video How to execute UPRERA Order? Under the Real Estate (Regulation & Development) Act 2016 (“the RERA Act) it is provided that if the Promoter is unable to deliver the Flat or Plot to the Allottee as per the … Read more