Court Quashes RERA Bihar's Rejection Order for Exceeding 30-Day Statutory Limit, Stresses Strict Compliance with RERA Act Provisions on Project Registration
In a significant judgment delivered on November 5, 2026, the Patna High Court, presided over by Justice Ajit Kumar, ruled in favor of Aditya Niwas Developers and Colonizers, holding that their real estate project "Chhabilchandra Enclave" stands deemed registered under the Real Estate (Regulation and Development) Act, 2016 (RERA Act) due to the Bihar Real Estate Regulatory Authority's failure to grant or reject the registration application within the mandatory 30-day period.
The petitioner, a partnership firm led by partner Niraj Kumar, had applied for registration of their G+3 residential project located at Danapur, Patna, on June 19, 2025. Despite responding promptly and repeatedly to queries from the RERA Authority, the registration application remained pending beyond the statutory 30-day window. The Authority issued a notice proposing rejection only on December 18, 2025, followed by an order dated January 8, 2026, and a formal rejection (Form-D) on February 16, 2026-well beyond the prescribed timeline.
The Court analyzed the statutory scheme under Section 5 of the RERA Act, which mandates that the Authority must either grant or reject a registration application within 30 days of receipt. Failure to act within this period results in deemed registration, automatically conferring registration status on the project. The Court emphasized that the Authority cannot extend this period indefinitely by raising successive queries or demanding documents not prescribed by the Act or relevant Rules.
Crucially, the Court found the Authority's insistence on documents such as the cooperative society's bye-laws permitting multi-storeyed construction, approval from the Registrar of Co-operative Societies for land-use conversion, and amendment deeds to the original sale deed, to be beyond the scope of Section 4(2) of the RERA Act and Rule 3 of the Bihar RERA Rules, 2017. Such demands were held to be ultra vires the Authority's powers.
The Court also clarified that RERA is a regulatory authority with limited jurisdiction and cannot assume the role of a planning or municipal sanctioning body. Since the Patna Municipal Corporation had already sanctioned the building plan and layout, RERA was not empowered to reopen or question these approvals during registration.
Rejecting the Authority's argument that the application was incomplete and thus the 30-day period never commenced, the Court held that the statutory timeline begins on receipt of the application as per the checklist and cannot be suspended by ongoing demands for additional documents not statutorily prescribed.
Highlighting settled principles of statutory interpretation, the Court underscored that where a statute prescribes a time limit and its consequences, such provisions are mandatory and cannot be circumvented. The Court relied on Supreme Court precedents including the 2025 ruling in Uttar Pradesh Real Estate Regulatory Authority v. Larsen & Toubro Limited, which affirmed that RERA Authorities have only two options within 30 days-grant or reject registration-and must not keep applications pending indefinitely.
Accordingly, the Patna High Court quashed the RERA Authority's notice dated December 18, 2025, the order dated January 8, 2026, and the rejection Form-D dated February 16, 2026, declaring them without jurisdiction. The project "Chhabilchandra Enclave" was held deemed registered under Section 5(2) of the RERA Act. The Court directed the Authority to immediately provide the petitioner with the registration number, Login ID, and password for accessing the RERA portal.
This judgment reinforces the importance of strict adherence to statutory timeframes under the RERA Act and curbs regulatory overreach by Authorities seeking documents beyond prescribed limits. It also underscores the protective intent of the RERA regime to facilitate timely registration and promote transparency and efficiency in real estate development.
Bottom Line:
Real Estate (Regulation and Development) Act, 2016 - If RERA neither grants nor rejects registration within 30 days of receipt of application, deemed registration under Section 5(2) follows automatically - RERA cannot keep application pending by raising successive queries or demand documents not prescribed under Section 4 and Rule 3 of Bihar RERA Rules, 2017.
Statutory provision(s):
Real Estate (Regulation and Development) Act, 2016 Sections 4, 5(1), 5(2); Bihar Real Estate (Regulation and Development) Rules, 2017 Rule 3; Bihar Real Estate Regulatory Authority (General) Regulations, 2024 Regulation 5
Aditya Niwas Developers and Colonizers v. State of Bihar, (Patna) : Law Finder Doc Id # 3014899
