Real Estate Appellate Tribunal does not have powers to initiate cases suo motu - Delhi HC

CASE: Praveen Chhabra v. Real Estate Appellate Tribunal

COURT: Justice Yashwant Varma of Delhi HC

The Delhi HC recently held that the Real Estate Appellate Tribunal does not have powers to initiate cases suo motu. The HC held the above while setting aside such proceedings initiated by the Appellate Tribunal to monitor construction activity in the National Capital Territory. 

The court held that the Appellate Tribunal can only consider challenges to orders passed by the Real Estate Regulatory Authority (Authority).

FACTS

In the present case, the Appellate Tribunal registered suo moto cases against various residential and commercial project activities being undertaken in association with the same in the national capital and had passed a restraining order against such projects. It also held that construction activity would have to stay till the project is registered under RERA Act.

Praveen Chhabra, a builder-developer, approached the HC after being informed that the plans he had submitted could not be approved by the Appellate Tribunal.

HELD

The HC stated that Appellate Tribunal is a creation of statute and not part of traditional judicial institutions. The Court held  “the Appellate Tribunal proceeded on incorrect and unfounded premise that all projects were liable to be compulsorily registered under this Act".