Court dismisses Army Welfare Housing Organisation's plea for exemption under RERA, reinforcing the need for registration of ongoing projects.
In a significant ruling, the Kerala High Court, presided over by Justice Ziyad Rahman A.A., has mandated the Army Welfare Housing Organisation (AWHO) to register its real estate project under the Kerala Real Estate (Regulation & Development) Act, 2016 (RERA). The court dismissed a series of writ petitions filed by AWHO challenging the Kerala Real Estate Regulatory Authority's (K-RERA) interim order that directed the registration of the "Chanderkunj Army Towers" project.
The court reiterated that the project, having received its occupancy certificate after the critical cut-off date of May 1, 2017, must be treated as an ongoing project, thereby necessitating registration under the RERA Act. The ruling emphasized that exemptions under Section 3(2)(c) of the RERA Act, which apply to renovations or redevelopments not involving new sales or allotments, were not applicable to projects like AWHO's that were ongoing as of the cut-off date.
The judgment highlighted the importance of ensuring that all real estate projects that fall within the purview of RERA are duly registered to safeguard the interests of the allottees. The court also noted that the statutory objective of Section 3(2)(c) is to exempt only those projects which were not ongoing as of the cut-off date from registration, thereby preventing any misinterpretation that could undermine the purpose of RERA.
The court dismissed the petitions without prejudice to the petitioners' rights to seek further statutory remedies with the appropriate authorities. This decision reinforces the regulatory framework aimed at ensuring transparency and accountability in the real estate sector.
Bottom line:-
Real Estate Projects - Exemption under Section 3(2)(c) of the RERA Act, 2016 does not apply to projects mandatorily requiring registration under the Act on the cut-off date.
Statutory provision(s): Kerala Real Estate (Regulation & Development) Act, 2016 - Section 3, Section 3(2)(c).
Army Welfare Housing Organisation (AWHO) v. Union of India, (Kerala) : Law Finder Doc id # 2928728
