Before Assam's appeal against a decision by the Real Estate Regulatory Authority (RERA) can be considered for admission, the Assam Real Estate Appellate Tribunal (REAT) has ordered a builder to deposit Rs 32,32,850.
The appeal was made by M/s Arya Erectors India Pvt. Ltd. in reaction to a decision made by the RERA, Assam, on September 21, 2022, which required the builder to give the buyer of a villa interest on a sum of Rs 1.5 crore beginning on August 28, 2020, until transferred the villa into the buyer's possession. As a further punishment, the builder was also charged Rs 1 lakh.
The Tribunal ruled under the proviso to a subsection of section 43 of the Real Estate Act, 2016, the proponent must instead deposit with the Appellate Tribunal at least 30% of the penalty, such a higher percentage as may be decided by the Appellate Tribunal before challenging a fine imposed by the RERA an appeal the REST. Second, suppose an order requiring the promoter to pay the complete sum, including interest and appropriate compensation, to the allottee is also challenged. In that case, the proponent must deposit the total amount before hearing the appeal. They are determined that the promoter must first deposit with the Appellate Tribunal Rs 32,32,850, the required statutory amount, before the request could be entertained or heard on the merits of the Tribunal. The statute gives the Appellate Tribunal no discretion to accept any deposit other than the most minuscule 30% of the penalty imposed and the total payment to be paid to the allottee by interest.
The Tribunal drew support from the Supreme Court of India's ruling in Newtech Promoters and Developers Pvt. Ltd. v. State of UP and Others, which held that the pre-deposit required by Section 43(5) of the Act is not, under any circumstances, excessively burdensome 14 or 19(1)(g) of the Indian Constitution. Accordingly, the Tribunal demanded payment of the entire amount within three weeks from M/s Arya Erectors India Pvt. Ltd.
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