Uppal Housing files appeal before Delhi High Court
Uppal Housing Private Limited [Uppal housing] has chosen to file an Appeal before the Hon’ble Delhi High Court under Section 58 of the Real Estate (Regulation and Development) Act, 2016 [RERA]. One of the key issue to be ascertained under the said Appeal was whether the Uppal Housing, being a land owner, falls within the definition of “Promoter” as defined under section 2(zk) of RERA. The Appeal was listed before the Hon’ble Chief Justice of Delhi High Court and Justice C. Hari Shanker on 01November 2019. The Hon’ble High Court was pleased to issue notice and was opinion that the said issue requires to be determined at length as it is the first time that this issue has been raised since introduction of RERA. The Uppal Housing is only the Land owner in the Project namely Winter Hills Dwara Morh Project, however, the RERA Appellate Tribunal has wrongly imposed liability of a Promoter on the Uppal Housing. The Uppal Housing has challenged the said order before the Hon’ble High Court of Delhi vide RERA Appeal under Section 58 of the of the Real Estate (Regulation and Development) Act, 2016 [RERA]. One of the issue raised before the Hon’ble High Court of Delhi is “whether the Uppal Housing, being a land owner, comes within the definition of Promoter as defined under section 2(zk) of RERA?” What needs to be determined by the Hon’ble High Court is whether Uppal Housing, a Land owner, can be brought in the category of promoters with respect to imposing liability of giving compensation and refund to the allottees and development of the project. It is important to note that RERA has categorically not defined land owner. However, Rule 3(f) of National Capital Territory of Real Estate (Regulation and Development) (General) Rules, 2016 specifically segregates the distinction between the Promoter and the land owner. Rule 3(f) states that “where the promoter is not the owner of the land on which development of project is proposed details of the consent of the owner of the land along with a copy of the collaboration agreement, development agreement, joint development agreement or any other agreement, as the case may be, entered into between the promoter and such owner and copies of title and other documents reflecting the title of such owner on the land on which project is proposed to be developed.” The Real Estate Regulatory Authority has granted registration certificate with respect to Winter Hills Dwarka Morh Project and has specifically stated that the Umang Realtech Pvt. Ltd. is the Promoter of the said Project. It is also mentioned that the Promoter shall comply with the provision of the RERA and the rules and regulation made under. Thus, the Uppal being a land owner has no liability under the RERA. The Uppal Housing is only a land owner and has duly given developmental rights to the Umang Realtech Pvt. Ltd. All the functions and duties of the Promoter stipulated under section 11 of the RERA has to be performed by the Umang Realtech Pvt. Ltd. being a promoter of the Winter Hills Dwarka Morh Project. Thus, the question to be determined by the Hon’ble High Court of Delhi is whether the Uppal Housing being a land owner falls within the definition of Promoter under the RERA and whether RERA Authority/Tribunal has power to adjudicate against the land owner and bind them under the liability of the Promoter.
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