News: HC dismisses Proview Realtech & MRJV Constructions' plea challenging UP-RERA order-25-01-2021
In their WRIT petitions, companies had asked for stay on the recovery certificates issued by the authority, quashing of order passed by the authority.
NEW DELHI: Allahabad High Court has dismissed Proview Realtech and MRJV Constructions Company's petitions challenging the orders passed by the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA).
In their WRIT petitions, companies had asked for stay on the recovery certificates issued by the authority, quashing of order passed by the authority.
A home buyer had booked flat in January 2012 which was to be delivered in the year 2017. The possession of the unit was not given, hence buyer sought refund of the amount with interest. Thus, taking into consideration the default of the promoter, UP-RERA ordered refund of the principal amount along with interest.
Builders challenging the same, pleaded that one member of RERA has passed the order going against the act of 2016. Section 21 of RERA provides for formation of authority consist of chairperson along with two whole time members. It is also stated that the order to award interest by the authority is again going contrary to the provisions. The interest has been allowed even for the period prior to introduction of RERA in the state.
The court observed that the petitioner did not raise objection before the single member about his competence to adjudicate the complaint. In absence of objection, the authority proceeded with the matter. If the objection would have been taken and was sustainable, the complaint could have been decided by the authority consisting of three members. The petitioner has challenged the order in reference to the composition only when he lost in the complaint.
The court also held that the purpose and object of Section 40(1) of RERA is to allow recovery of the amount as arrears of land revenue so as to expeditiously give the relief to the consumer having suffered in the hands of the promoter.
