RERA Review Powers Are Limited; Review Cannot Be Used to Rehear a Matter on Merits: MP REAT
Title: Madhya Pradesh Real Estate Regulatory Authority v. Aarti Soni & Anr.
The Madhya Pradesh Real Estate Appellate Tribunal (MP REAT) recently dismissed a review petition filed by the Madhya Pradesh Real Estate Regulatory Authority, reiterating that the power of review is limited and cannot be used as a substitute for an appeal.
The Tribunal held that review is maintainable only where there is an error apparent on the face of the record, discovery of new material/evidence, or another sufficient reason. A party cannot seek a rehearing of the matter merely because it is dissatisfied with the earlier appellate decision.
The Authority contended that subsequent action taken under Section 59 of RERA, including imposition of a ₹1 lakh fine, demonstrated compliance with the earlier directions. The Tribunal, however, found that the subsequent penalty did not establish effective compliance with the earlier order and that the requirements arising under Sections 7 and 8 of RERA continued to remain unfulfilled.
Accordingly, the Tribunal found no ground for review, dismissed the review petition and directed the Authority to proceed with compliance after affording the concerned parties an opportunity of hearing.
Key takeaway: A review petition under RERA cannot be used to reopen the merits of a reasoned appellate order. Subsequent regulatory action will not, by itself, establish an error in the original decision or cure continuing non-compliance with statutory directions.
