Assam REAT directs builder to deposit Rs. 64 lakh before appealing against RERA’s order

The Assam Real Estate Appellate Tribunal (REAT) has directed a builder to deposit Rs. 64,21,955 prior to appealing against an order of the Real Estate Regulatory Authority (RERA). REAT stated that the appeal will be considered for admission post the deposit has been made.

The appeal was filed by M/s Gargi & Associates Pvt. Ltd. against an order passed by RERA on June 2, 2022. RERA, Assam had directed the builder to return the consideration amount of Rs.34,00,000 along with interest to the buyers of a flat for failure to deliver the flat on time.

As per the order of the RERA, the rate of interest is to be calculated from the date of receipt of the consideration amount by the builder.

The Tribunal ruled that the provision to sub-section (5) of section 43 of the Real Estate (Regulation and Development) Act, 2016 contains two distinct parts relating to the quantum of deposit, required to be made by the promoter with the Appellate Tribunal before the appeal is entertained.

RERA imposed the penalty on the first part which has been challenged by a promoter by way of appeal.

“In this case, the promoter must first deposit with the Appellate Tribunal at least 30 percent of the penalty,” ordered REAT.

“The second part is where challenge is made to an order of RERA where a promoter has been directed to make payment of the total amount to the allottee against the purchase of a flat. In this case, the promoter has to deposit with the REAT the total amount to be paid to the allottee including interest before the appeal can be entertained. The Appellate Tribunal cannot accept any deposit other than the total amount,’ the Tribunal added.

The Tribunal, therefore, asked the builder to first deposit Rs. 64,21,955 including the consideration amount of Rs. 34,00,000 paid by the buyers to the builder and the interest amount of Rs. 30,21,955.

The order has been passed by Justice (Retd.) Manojit Bhuyan, Chairperson and Onkar Kedia, Member of Assam REAT.

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