Case Note & Summary
The judgment involves three second appeals filed by Lavasa Corporation Limited against orders of the Real Estate Regulatory Authority (RERA) and the Appellate Tribunal. The appellant, a real estate developer, had entered into agreements with respondents for sale of flats in a project called 'Lavasa' prior to the commencement of the Real Estate (Regulation and Development) Act, 2016 (RERA). The respondents filed complaints before RERA alleging delays and deficiencies. RERA entertained the complaints and passed orders. The appellant challenged these orders on the ground that RERA had no jurisdiction to entertain complaints regarding agreements executed before the Act came into force. The High Court considered the issue of whether RERA can retrospectively apply to agreements executed prior to the Act. The court analyzed Section 3 of the RERA Act, which applies to projects where completion certificate is not obtained before the commencement of the Act. The court held that the Act does not have retrospective effect and that RERA cannot entertain complaints in respect of agreements executed prior to the Act. The court allowed the appeals, setting aside the orders of RERA and the Appellate Tribunal, and held that the complaints were not maintainable. The court emphasized that the jurisdiction of RERA is prospective and cannot be invoked for pre-Act agreements.
Headnote
A) Real Estate Law - Jurisdiction of RERA - Retrospective Application - Section 3, Section 79 of the Real Estate (Regulation and Development) Act, 2016 - The issue was whether RERA can entertain complaints regarding agreements executed before the Act came into force. The Court held that RERA has no jurisdiction over such complaints as the Act does not have retrospective effect. The agreements were executed prior to the commencement of the Act, and thus, the complaints were not maintainable before RERA. (Paras 1-10) B) Real Estate Law - Maintainability of Complaint - Agreement Prior to Act - Section 3 of the Real Estate (Regulation and Development) Act, 2016 - The Court held that the provisions of the Act apply only to projects for which completion certificate is not obtained prior to the commencement of the Act. Since the agreements in question were executed before the Act, the complaints were not maintainable. (Paras 1-10)
Issue of Consideration
Whether the Real Estate Regulatory Authority (RERA) has jurisdiction to entertain complaints in respect of agreements executed prior to the commencement of the Real Estate (Regulation and Development) Act, 2016.
Final Decision
The High Court allowed the appeals, set aside the orders of RERA and the Appellate Tribunal, and held that the complaints were not maintainable before RERA as the agreements were executed prior to the commencement of the Act.
Law Points
- Jurisdiction of RERA
- Retrospective application of RERA
- Maintainability of complaint before RERA
- Agreement executed before commencement of RERA
- Section 3 of RERA
- Section 79 of RERA
