West Bengal Tribunal Upholds Restrictions on 'Atmosphere' Promoter
The West Bengal Real Estate Appellate Tribunal has dismissed an appeal filed by Forum Projects Private Limited, the promoter of “Atmosphere – The Luxurious Condominium”, and upheld interim restrictions imposed by the West Bengal Real Estate Regulatory Authority (WBRERA). This decision comes as a significant victory for homebuyers who had filed a complaint alleging various violations of the Real Estate (Regulation and Development) Act (RERA).
The luxury residential project, located at 1001/A, Eastern Metropolitan Bypass, adjacent to Science City in Kolkata, has been under scrutiny for several alleged irregularities. The appeal challenged an interim order passed by WBRERA in April 2025, which restrained the promoter from dealing with, transferring, or alienating any part of the project or its common areas pending the disposal of a complaint by several flat owners. The order also directed an inspection by the Kolkata Municipal Corporation (KMC) and verification by WBRERA officials.
The complaint was filed by ten homebuyers who alleged multiple violations of RERA. According to a WBRERA press note, the complainants claimed that the promoter had executed multiple sub-lease agreements and deeds that deviated from the formats disclosed to the regulator. Additionally, the promoter was accused of unilaterally revising the sanctioned plan by adding residential units without obtaining the mandatory consent of at least two-thirds of the allottees.
The residents further alleged that a portion of the first-floor “E-Deck”, designated as a common area, was converted into an additional apartment, and that two residential units were constructed above the originally sanctioned floors, thereby affecting the common area rights. They also raised concerns about the failure to transfer special and sinking funds to the association and the stoppage of maintenance services.
In response to these allegations, Forum Projects Private Limited argued that the revised building plan had been applied for before the consent provision came into force. However, the tribunal held that the decisive stage is when the modified plan is sanctioned, noting that when the KMC approved the revised plan in November 2018, the statutory consent requirement was already in force. The tribunal emphasized that there can be no estoppel against a statute, contractual clauses cannot override mandatory legal provisions, and arbitration proceedings do not bar regulatory action.
Finding a prima facie violation, the tribunal upheld all interim directions and directed WBRERA to dispose of the complaint expeditiously. This decision underscores the importance of adhering to regulatory norms and the rights of homebuyers in the real estate sector. The West Bengal Real Estate Regulatory Authority (WBRERA) plays a crucial role in ensuring transparency and accountability in the real estate market, and this ruling serves as a reminder to promoters to comply with legal requirements to avoid penalties and legal complications.
The decision is expected to set a precedent for similar cases and provide a sense of security and assurance to homebuyers in the region. It also highlights the need for continuous vigilance and strict enforcement of regulations to protect the interests of consumers in the real estate industry.
