#Real Estate Law

The Allahabad HC quashed a third compounding order for Gulmohar Greens, holding repeated compounding for identical offences barred. It ruled Air Force land cannot count toward FAR, mandated prior apartment-owner consent for alterations under the UP Apartment Act, and required a completion certificate before flat transfers. Demolition of unauthorized floors and a fresh police probe were ordered.

The Bombay High Court ruled that the RERA Appellate Tribunal cannot adjudicate merits when the Regulatory Authority dismissed a complaint on maintainability grounds without a merits hearing. Doing so would deprive parties of their statutory right to first-instance adjudication and a subsequent appeal. The Tribunal must remand the matter to the Authority for fresh merits determination.

The Bombay HC held that a promoter may terminate an allotment for non-payment of stamp duty under RERA, setting aside Maha RERA and Appellate Tribunal orders. It directed refund of Rs.12.3 lakh with interest at SBI MCLR+2% from July 2016, affirming that payment of statutory charges is a condition precedent to the allottee's rights.

The Allahabad High Court has mandated that the Real Estate Regulatory Authority must conclude registration proceedings initiated via notice under Section 59 of RERA, 2016, within three months of its production. This enforces a strict statutory deadline, protecting homebuyers from indefinite delays and reinforcing RERA’s obligation to act with urgency, not discretion.

CESTAT Bangalore rules that real estate transactions on principal-to-principal basis are not taxable as 'Real Estate Agent Services' and works contract valuation must exclude goods value under Rule 2A(i) of Service Tax Rules.

The Madhya Pradesh High Court has ruled that basement construction area does not count toward permissible ground coverage under the MP Bhumi Vikas Rules, 2012, invalidating arbitrary stoppage orders against developers. This clarifies a critical ambiguity for real estate builders across Madhya Pradesh, enabling more efficient land use without violating density norms.

Bombay High Court rules that builders cannot seek vacation of property attachment orders under MahaRERA without first complying with recovery certificates. The judgment reinforces strict enforcement of consumer rights, mandating full payment of dues before any relief is granted to defaulting developers.

Bombay High Court rules that an allottee’s right to interest under RERA for delayed possession is absolute and cannot be waived by conduct, silence, or acceptance of revised timelines. The judgment clarifies that RERA’s consumer protection provisions prevail over contractual defenses under the Indian Contract Act, ensuring homebuyers are not deprived of statutory remedies.

The Bombay High Court has ruled that once a developer has exhausted the permissible development rights under MOFA, they cannot delay transferring land to the housing society by alleging potential future Floor Space Index. This clarifies that deemed conveyance is triggered by completed development, not speculative future gains, protecting cooperative societies from prolonged legal obstruction by builders.

Bombay High Court rules that promoters must secure explicit informed consent from existing apartment owners under Section 7 of the Maharashtra Ownership Flats Act (MOFA), 1963, before undertaking structural alterations. The Court overturned a blanket injunction, permitting construction subject to undertakings to preserve amenities, reinforcing promoter obligations and buyer rights in real estate disputes.

The Bombay High Court has ruled that developers cannot bypass MahaRERA’s statutory appeal mechanism by filing writ petitions challenging recovery orders under Section 40 of RERA. This reinforces that specialized tribunals like RERA are the exclusive forum for resolving real estate disputes, preserving legislative intent and preventing forum shopping by promoters.

The Rajasthan High Court ruled that a statutory authority cannot forfeit ₹9.46 crores in earnest money for failing to deliver encroachment-free land as promised in public auctions. The court directed a full refund with 10% interest, reinforcing that state entities cannot escape liability for contractual breaches under the guise of administrative discretion.

The Supreme Court has ruled that when a subsequent contract explicitly states that all terms of a prior agreement form part of it, the arbitration clause in the earlier contract is validly incorporated - even without repeating its language. This clarifies the legal standard for incorporation by reference, empowering developers and parties in real estate and commercial contracts to enforce arbitration where clear contractual language exists.

Allahabad High Court rules that a lessee without the right to sell units does not qualify as a 'promoter' under RERA, as the statutory definition mandates the ability to transfer or sell units. The judgment clarifies that leasehold arrangements lacking sale rights fall outside RERA's registration requirements, impacting real estate developers and regulatory authorities.

Bombay High Court rules that Transferable Development Rights (TDR) lawfully acquired but unutilised due to external constraints retain validity. The Court directs revalidation under DCPR 1991, reinforcing property rights protection for developers facing unavoidable delays in project execution.