Delhi Development Authority v. Real Estate Regulatory Authority, NCT of Delhi
Forum: Real Estate Appellate Tribunal for NCT of Delhi
Facts:
DDA applied online for registration of a real-estate project on 28 February 2023. The authority raised deficiencies months later and granted registration only on 3 April 2024. In the meantime, DDA launched its Diwali Special Housing Scheme on 30 November 2023 and claimed deemed registration under Section 5(2). RERA NCT Delhi imposed a penalty of INR 1 million.
Issue:
Whether failure of the RERA authority to grant or reject an application within 30 days results in deemed registration under Section 5(2), even where the application is subsequently said to be deficient.
Held:
The Tribunal held that Section 5 provides a clear 30-day statutory period within which the authority must grant or reject registration. It found no statutory distinction between complete and incomplete applications for triggering the timeline in the circumstances and consequently set aside the penalty.
Ratio:
The statutory time limit under Section 5(2) must be given effect. Administrative delay cannot indefinitely postpone the statutory consequences contemplated by the Act.
Practical Impact:
Promoters and public authorities should maintain proof of filing dates and monitor the statutory 30-day period. RERA authorities must also ensure timely scrutiny and disposal of registration applications.
Relevant RERA Sections:
Section 3 — registration requirement; Section 4 — application for registration; Section 5 — grant/rejection of registration; Section 5(2) — deemed registration; Section 59 — penalty for non-registration.
