Real Estate Tribunal Restricts Project Registration Extension in West Bengal

Kolkata: The West Bengal Real Estate Appellate Tribunal has issued a significant order that restricts the extension period for a housing project's registration. This decision comes in the wake of legal challenges and regulatory complexities following the Supreme Court's 2021 ruling that struck down the West Bengal Housing Industry Regulation Act, 2017.

The project in question, Essense by Periwal Constructions LLP, initially registered with the West Bengal Housing Industry Regulatory Authority (WBHIRA) from September 6, 2019, to June 30, 2024. The project faced multiple setbacks due to the COVID-19 pandemic and subsequent legal hurdles. The Howrah Municipal Corporation halted construction in September 2022, a decision that was later overturned by the Supreme Court in September 2024.

Due to these disruptions, Periwal Constructions sought an extension of the project's registration from March 31, 2025, to December 31, 2026. The West Bengal Real Estate Regulatory Authority granted this extension, which prompted an appeal from Suman Bhaumik, an allottee of the project. Bhaumik contended that the extension exceeded the one-year limit stipulated under Section 6 of the Real Estate (Regulation and Development) Act, 2016 (RERA).

The tribunal, comprising Chairperson Justice Rabindranath Samanta and Administrative Member Subrat Mukherjee, reviewed the Supreme Court's 2021 judgment and interpreted Section 6 of the RERA Act. They concluded that while the first part of the section allows for extensions due to force majeure without a time limit, the second part mandates that extensions cannot exceed one year. Consequently, the tribunal modified the Regulatory Authority's order, limiting the extension to March 31, 2026.

The tribunal, however, dismissed Bhaumik's plea for compensation and penalties against the promoter, citing the absence of a formal complaint under Section 31 of the RERA Act and the lack of prior adjudication by the regulatory authority. This decision underscores the importance of adhering to the provisions of the RERA Act and the need for developers to manage project timelines and legal compliance effectively.

The Real Estate (Regulation and Development) Act, 2016, was introduced to regulate the real estate sector, protect the interests of homebuyers, and ensure transparency and accountability in the industry. The act requires all real estate projects to be registered with the respective state regulatory authorities and mandates that developers adhere to strict guidelines and timelines. The West Bengal Real Estate Appellate Tribunal's decision is a step towards ensuring that these guidelines are followed, thereby enhancing the confidence of homebuyers and investors in the real estate market.