Rajasthan RERA says it has jurisdiction over unregistered projects, orders refunds
The developer had claimed that the project was completed before the RERA Act came into force.
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RERA in Jaipur. File photo
JAIPUR: The Rajasthan Real Estate Regulatory Authority (RERA) has ruled that it can act against all ongoing real estate projects, even if they are unregistered.
The ruling came in the case of Das Residency, a farmhouse project. The developer had claimed that the project was completed before the RERA Act came into force. However, RERA disagreed and declared the project ongoing.
The case was filed by Sudhir Bhushan and Praveen Bhushan. They had booked a unit in the project in 2011 for Rs 17.99 lakh. Despite years of waiting, they alleged that they never got possession. The complaint was heard ex-parte as the developer failed to appear during the final hearings.
The respondent promotor argued that the complaint was time-barred and that RERA had no authority over the project since it was not registered. They also claimed the project was completed in 2015. But RERA rejected these arguments. The Authority said the RERA Act, being a special law, overrides the Limitation Act and does not limit when a complaint can be filed.
Importantly, RERA pointed out that it can take action against unregistered ongoing projects. Since Das Residency had no completion certificate and remained unregistered, RERA took suo motu action.
It also clarified that plotted development schemes must be registered as per the 2024 RERA Regulations. The developer’s claim that possession was already given was dismissed due to lack of proof. There was also no evidence that the complainants had failed to pay stamp duty.
RERA has now ordered the developer to refund the entire amount of Rs 17.99 lakh. The refund will also include 11.10% annual interest from April 23, 2012—the expected possession date—until the refund is made.
