Facts
The appellant, a colonizer, registered a residential project "Swarnika Homes" with the Real Estate Regulatory Authority (RERA) on 01.05.2017
Source reference: para. 2Although the project was completed and a completion certificate was issued by the local authority on 06.10.2022, the appellant could not upload it to the RERA portal due to a technical delay
Source reference: para. 2The Secretary of RERA, via a letter dated 22.05.2024, directed the appellant to upload the certificate only after paying a late fee/penalty
Source reference: para. 2The appellant challenged this letter before the M.P. Real Estate Appellate Tribunal, which dismissed the appeal on 06.11.2025 as "not maintainable"
Source reference: para. 1, 2Issues
1. Whether an appeal under Section 44 of the RERA Act, 2016 is maintainable against a secretarial communication demanding late fees in the absence of a formal adjudicatory order by the Authority
Source reference: para. 3, 42. Whether the RERA Authority can impose or recover penalties without adhering to the principles of natural justice
Source reference: para. 4, 6Law Applied
The Court applied Section 38 of the Real Estate (Regulation and Development) Act, 2016, which empowers the Authority to impose penalties or interest for contraventions by promoters
Source reference: para. 3Section 38(2) mandates that the Authority must be guided by the principles of natural justice and is empowered to regulate its own procedure
Source reference: para. 3Furthermore, Section 44 allows for appeals to the Tribunal against a "decision or order" passed by the Authority
Source reference: para. 3Reasoning
The Court observed that under Section 38, while the Authority has the power to penalize, such a power must be exercised following the principles of natural justice
Source reference: para. 4In the present case, the impugned communication dated 22.05.2024 was merely a letter from the Secretary and did not constitute a "final order" or a formal decision by the RERA Authority imposing a penalty
Source reference: para. 4, 5The Court reasoned that since no formal adjudicatory process had taken place, the Appellate Tribunal's conclusion—that the appeal was premature and not maintainable—was correct
Source reference: para. 4The Court noted the appellant's concern regarding ongoing monthly penalties and emphasized that recovery cannot precede a formal hearing
Source reference: para. 6Holding
The High Court affirmed the Tribunal's order, holding that the appeal was not maintainable at the current stage
The Court directed the appellant to submit a detailed reply to the Secretary's letter, after which the Authority must pass a formal decision following a personal hearing. The Court further ordered that no penalty shall be recovered from the appellant until the Authority passes a final order. The appeal was disposed of with these directions
Source reference: para. 6, 7Original Court PDF
M/S Khare BuildersvsReal Estate Regalaratory Authority
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