KOLKATA: The West Bengal Real Estate Appellate Tribunal has ruled to restrict the extension period for a housing project’s registration. This decision follows legal challenges and regulatory issues stemming from the Supreme Court’s 2021 ruling that annulled the West Bengal Housing Industry Regulation Act, 2017.
The project, Essense by Periwal Constructions LLP, was initially registered with the West Bengal Housing Industry Regulatory Authority (WBHIRA) from September 6, 2019, to June 30, 2024. However, it encountered several obstacles due to the Covid-19 pandemic and subsequent legal issues. Construction was halted by the Howrah Municipal Corporation in September 2022, a decision that was later overturned by the Supreme Court in September 2024.
As a result of these disruptions, Periwal Constructions applied for an extension of the project’s registration from March 31, 2025, to December 31, 2026. Although the West Bengal Real Estate Regulatory Authority approved the extension, Suman Bhaumik, an allottee of the project, appealed against it. Bhaumik argued that the extension was in excess of the one-year limit set under Section 6 of the Real Estate (Regulation and Development) Act, 2016 (RERA).
The tribunal, led by chairperson Justice Rabindranath Samanta and administrative member Subrat Mukherjee, reviewed the Supreme Court’s 2021 judgment and interpreted Section 6 of the RERA Act. They concluded that while the initial part of Section 6 allows for extensions due to force majeure indefinitely, the latter part stipulates that no extension can exceed one year. Consequently, the tribunal modified the Regulatory Authority’s order, capping the extension at March 31, 2026.
However, the tribunal dismissed Bhaumik’s request for compensation and penalties against the promoter, citing the lack of a formal complaint under Section 31 of the RERA Act and the absence of prior adjudication by the regulatory authority.
