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The Delhi Real Estate Appellate Tribunal has directed the Real Estate Regulatory Authority to adhere strictly to statutory timelines while processing builder registration applications. The tribunal observed that prolonged delays in granting or rejecting registrations can create room for misconduct and weaken confidence in the regulatory framework. The direction followed a case involving the Delhi Development Authority, which faced a financial penalty due to delayed project registration. The order clarifies the scope of deemed registration under the RERA Act and reiterates the authority's responsibility to act within 30 days.
The Delhi Real Estate Appellate Tribunal has asked the Real Estate Regulatory Authority to ensure that builder registration applications are processed without delay. The tribunal noted that extended inaction by the regulator not only disrupts project timelines but also raises concerns about transparency and accountability in the real estate regulatory system. Advertisement
The observation came while hearing an appeal filed by the Delhi Development Authority against a penalty of INR 10 lakh imposed for failing to register a multistorey housing project in Dwarka. The authority stated that its application for registration had remained pending with RERA for several months, despite having been submitted in line with procedural requirements.
While examining the matter, the tribunal referred to provisions under the Real Estate (Regulation and Development) Act, 2016, which mandate that RERA must either approve or reject a registration application within 30 days of its receipt. The tribunal clarified that if no decision is taken within this period, the applicant becomes eligible for deemed registration under the Act.
It further explained that once the 30-day period lapses without a decision, RERA is required to issue a registration number and login credentials within the next seven days. This allows the promoter to create the project's web page and upload mandatory disclosures as prescribed under the law. The tribunal emphasized that this process is automatic and does not depend on discretionary action by the authority.
The tribunal also highlighted that the Act does not differentiate between complete and incomplete applications when it comes to the statutory timeline. It stated that RERA is expected to communicate deficiencies, if any, within the prescribed period rather than allowing applications to remain undecided.
The order reinforces the regulator's obligation to function within clearly defined timelines, especially as project registration forms the foundation of buyer protection, disclosure norms, and enforcement mechanisms under the RERA framework.
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