West Bengal Real Estate Tribunal Limits Project Registration Extension
The West Bengal Real Estate Appellate Tribunal has issued a landmark order limiting the extension period for a housing project's registration, following legal challenges and regulatory complexities.
Real EstateProject RegistrationReraWest BengalLegal ChallengesReal EstateNov 19, 2025
The project, 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, prompting 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 has significant implications for the real estate sector in West Bengal, emphasizing the need for strict adherence to regulatory guidelines and proactive management of project timelines.
Frequently Asked Questions
What is the Real Estate (Regulation and Development) Act, 2016 (RERA)?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a regulatory act in India aimed at protecting the interests of homebuyers and promoting transparency, accountability, and efficiency in the real estate sector.
Why was the extension period for the Essense project limited?
The extension period for the Essense project was limited because the West Bengal Real Estate Appellate Tribunal interpreted Section 6 of the RERA Act, which mandates that extensions cannot exceed one year, despite allowing extensions due to force majeure.
What legal challenges did the Essense project face?
The Essense project faced legal challenges including the halt of construction by the Howrah Municipal Corporation in September 2022, which was later overturned by the Supreme Court in September 2024.
Who appealed the extension of the Essense project's registration?
Suman Bhaumik, an allottee of the Essense project, appealed the extension of the project's registration, contending that the extension exceeded the one-year limit stipulated under Section 6 of the RERA Act.
What was the outcome of the tribunal's decision?
The tribunal modified the Regulatory Authority's order, limiting the extension to March 31, 2026, and dismissed Bhaumik's plea for compensation and penalties against the promoter due to the absence of a formal complaint under Section 31 of the RERA Act.
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