Bombay High Court refused to extend RERA registration deadline

The Nagpur bench of Bombay High Court on Wednesday declined to extend the registration deadline under the Real Estate (Regulation and Development) Act, 2016 and has directed a group of builders to complete the registration process before July 31 deadline. The court was hearing a petition by four builders, namely Swapnil Promoters and Developers, Swapnil Associates, Sukhyog Construction and Guru Construction, who alleged that provisions which restricted sale of real estate, required opening of escrow account and registration of existing projects with RERA were unconstitutional. They questioned the constitutional validity of certain “arbitrary and draconian’’ provisions of the new law, which, they said, would apply retrospectively to older projects, already under construction. In an affidavit the Central Government said that the “act is not unconstitutional’’ nor is it a retrospective application as ongoing projects are not complete. “The Real Estate Act does not envisage penalty for violations prior to the commencement of the Act,’’ said the Centre in its affidavit. The various sections which provide for responsibilities of the promoter and penalties for their breach come into effect only from May 1, the government added. A division bench of Justice Bhushan Dharmadhikari and Justice Rohit Deo allowed the petitioners to amend their petition within a week and adjourned the matter to August 21 for further hearing. The court recorded a submission by senior counsel Sunil Manohar who appeared for the developers, that they would comply with the registration deadline.