Point of Law : Section 3(1) prescribes that no promoter shall advertise, sell or offer to sell, or invite persons to purchase any plot, apartment or building in any real estate project which is not registered under Act.

JUDGMENT :

Yashwant Varma, J.

1. The petitioner who is a builder developer by profession has instituted these proceedings seeking the following reliefs: -

“(a) Issue a writ, order and direction, directing the respondent to place on record all the necessary records pertaining to case titled (Suo Motu Case) REAT/0002/2021 titled as “Court of Its Own Motion Vs. Commissioners of all the Municipal Zones & Anrs.”;

(b) Set aside and quash the orders and proceedings in respect of (Suo Motu Case) REAT/0002/2021 titled as “Court of Its Own Motion Vs. Commissioners of all the Municipal Zones & Anrs.”;

(c) Set aside orders dated 24/11/2021 and 17/11/2021 passed by Real Estate Appellate Tribunal, New Delhi in (Suo Moto Case) REAT/0002/2021 titled as “Court of Its Own Motion vs. Commissioners of all the Municipal Zones & Anr;”

2. In terms of the impugned orders, the Real Estate Appellate Tribunal Appellate Tribunal has drawn suo moto proceedings in respect of various residential and commercial projects and construction activity being undertaken in connection therewith in the National Capital Territory of Delhi and passed orders of restraint in terms noted hereinafter. The order of 17 November 2021 in terms of which proceedings were initiated records as follows: -

“ORDER:

It has been mentioned before us that there are large number of projects under construction, falling within the jurisdiction of this Tribunal. where the mandatory provision for registration of project under the Real Estate (Regulation and Development) Act, 2016 has not been complied with. A number of projects have been mentioned at the Bar. However, we deem it necessary to further verify the details, before we name the properties herein.

Section 3 in Chapter 11 of the Act provides for Registration of a Real Estate Project Sub-section (1) of Section 3 stipulates that no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act. Sub Section (2) relates to the applicability of the Act - (a) where the area of land proposed to be developed exceeds five hundred square meters or the number of apartments proposed to be developed exceeds eight, inclusive of all phases. It has been submitted before us that despite the clarity of the provisions of the Act regarding their applicability, there is a rampant non-compliance of these provisions within the city.

The Registry of the Tribunal also points out that they had addressed a couple of communications to the Commissioner of Police seeking details of the FIRS registered in respect of societies/individuals offering membership of housing projects and fraudulently collecting huge amounts of money from the gullible buyers within the jurisdiction of Delhi and especially in areas falling under the land pooling policy initiated by the Delhi Development Authority. The details are stated to have not been received till date, despite lapse of considerable time and also a reminder.

Keeping in view the aforesaid background, it is considered appropriate that suo-moto proceedings are initiated in the matter to ensure that there is strict compliance of the provisions of the Act and that the gullible buyers are not left to be cheated by the unscrupulous persons operating in the construction business.

Accordingly, issue notice to the Commissioners of all the Municipal Zones, the Vice Chairman of the Delhi Development Authority. Chairperson. NDMC as also the Commissioner of Police. Delhi, returnable on 24.11.2021.”

3. In terms of the order of 24 November 2021, the Appellate Tribunal has noticed that the Real Estate (Regulation and Development) Act, 2016 Act places an obligation on all developers and builders to ensure that projects are duly registered and completed in accordance with the provi