Friday, May 27, 2022

Real Estate Appellate Tribunal does not have suo motu powers (RERA): Delhi High Court

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The Real Estate Appellate Tribunal (Appellate Tribunal) does not have powers to initiate cases suo motu, the Delhi High Court recently held while setting aside such proceedings initiated by the tribunal to monitor construction activity in the National Capital Territory.

Single-judge Justice Yashwant Varma held that under the Real Estate (Regulation and Development) Act, 2016 (RERA), the jurisdiction of the Appellate Tribunal stands confined to consideration of challenges raised against orders passed by either the Real Estate Regulatory Authority (Authority) or the Adjudicating Authority under the RERA.

"The Act does not vest or confer any authority or jurisdiction upon the Appellate Tribunal to initiate proceedings on its own motion." 

The Court held that the Appellate Tribunal failed to keep the ambit of the Act in mind.

“The Appellate Tribunal proceeded on the incorrect and unfounded premise that all projects were liable to be compulsorily registered under the Act.” 

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