HT Bureau
Guwahati, July 31: The Assam Real Estate Appellate Tribunal (REAT) has asserted that the mere pendency of civil suits cannot be used as a legal excuse to avoid the registration of real estate projects. The tribunal made this observation while dismissing an appeal filed by a builder against a judgment delivered by the Real Estate Regulatory Authority (RERA) of Assam.
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In the case in question, RERA had imposed a penalty of Rs 20 lakh on the builder for failing to register a real estate project comprising 252 flats. As per Sub-Section (1) of Section 3 of the Real Estate (Regulation and Development) Act, 2016, it is mandatory for builders to register their projects with RERA before advertising, marketing, selling, or offering any plots, apartments, or buildings for sale.
The builder, in his own admission, had commenced construction on April 3, 2018 and had already received advance payments from 106 individuals, totalling Rs 14 crore, without registering the project with RERA, in violation of the Act.
During the appeal, the builder argued that the project was entangled in various civil suits with landowners since 2018, and therefore, its fate was uncertain. However, the Tribunal rejected this argument, stating that the pendency of civil suits does not exempt the builder from complying with the statutory provisions of Section 3 of the Real Estate (Regulation and Development) Act, 2016.
The Assam REAT, chaired by Justice (Retd) Manojit Bhuyan and Onkar Kedia, member, directed the builder to deposit the entire penalty amount with Assam RERA within three weeks. The full text of the order is available on the official website of the Tribunal at reat.assam.gov.in.
