Madhya Pradesh High Court

Appeal against administrative letter is premature until Authority passes a final order after hearing.

M/S Khare Builders vs Real Estate Regalaratory Authority

Madhya Pradesh High CourtJUDGMENT: July 06, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

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. 2

Although 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. 2

The 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. 2

The 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, 2
02

Issues

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, 4

2. Whether the RERA Authority can impose or recover penalties without adhering to the principles of natural justice

Source reference: para. 4, 6
03

Law 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. 3

Section 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. 3

Furthermore, Section 44 allows for appeals to the Tribunal against a "decision or order" passed by the Authority

Source reference: para. 3
04

Reasoning

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. 4

In 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, 5

The 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. 4

The Court noted the appellant's concern regarding ongoing monthly penalties and emphasized that recovery cannot precede a formal hearing

Source reference: para. 6
05

Holding

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, 7
Madhya Pradesh High Court

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M/S Khare BuildersvsReal Estate Regalaratory Authority

Madhya Pradesh High Court · July 06, 2026

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