NEW DELHI: Delays in processing registration applications from builders and promoters have raised corruption concerns. Delhi’s real estate tribunal has instructed the Real Estate Regulatory Authority (RERA) to make decisions—either approve or deny—within 30 days of receiving applications.
“The clear directive is that the Real Estate Regulatory Authority must address applications within 30 days of receipt, making decisions based on the merits. Protracted delays violate statutory timelines and can lead to accusations of corruption and malpractice, which can be mitigated by adhering to the law,” remarked the Real Estate Appellate Tribunal last week.
The tribunal reviewed an appeal from the Delhi Development Authority (DDA), which faced a Rs 10 lakh penalty from RERA for failing to register a multistorey housing project in Dwarka on schedule. While RERA criticized DDA for submitting an incomplete application, the DDA claimed its request had been pending for several months.
Tribunal member Lorren Bamniyal emphasized that the RERA Act treats all applications equally, regardless of completeness. “In this instance, there was no justification for RERA to leave the application unresolved for an extended duration and then penalize the appellant with Rs 10 lakh,” he noted, after attorneys Anil Kumar Sharma and Vrinda Kapoor Dev stated that DDA had submitted its registration request online on February 28, 2023, but RERA failed to act on it.
DDA’s representatives indicated that RERA took nearly seven months to respond, citing missing information and requesting a complete application.
To avert such delays, the tribunal’s ruling mandated strict compliance with Section 5 of the Act pertaining to registration processes. “If an application is rejected, RERA must hold a hearing for the applicant. Furthermore, if RERA neither approves nor denies the application within the designated 30 days, the applicant may claim ‘deemed registration’. The authority is then obligated to provide a registration number and login credentials within seven days after the 30-day period expires, granting access to the authority’s website to establish a project page,” the order stated, referencing the timelines specified in the RERA Act.
