The execution of sale deeds post-enactment of the Real Estate Act mandates project registration irrespective of prior agreements, emphasizing statutory compliance and buyer protection.

JUDGMENT :

EASWARAN S., J.

1. Interpretation of Section 3 of the Real Estate (Regulation and Development) Act, 2016 falls for consideration in this appeal. The present appeal arises out of the order passed by the Kerala Real Estate Appellate Tribunal, Ernakulam dated 28.05.2025 in REFA No. 44 of 2025 affirming the interim order passed in Complaint No. 160 of 2023 by the Kerala Real Estate Regulatory Authority, Thiruvananthapuram dated 23.01.2025.

2. The brief facts necessary for the disposal of the appeal are as follows:

2.1. The 1^st appellant is the proprietor of the company named ‘Top Constructions’, which constructed the Flat in the name ‘Top Crystal Apartments’ in Thrissur district. The allottees of the said apartments formed an association in the name ‘Top Crystal Owners Association’. They approached the Kerala Real Estate Regulatory Authority, Thiruvananthapuram with a complaint stating that the promoter has not registered the project under Section 3 of the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as the ‘Act of 2016’ for short). The complaint was filed on 31.07.2023. According to the complainants, there are 32 flats in the building situated in a total extent of 9.71 Ares in Sy. No. 1958/1 part and 1958/5 part of Thrissur Village. 27 members are there in the Complainant Association/1^st respondent herein, 5 apartments are yet to be sold and retained by the respondents/appellants herein. Even though Sale Deed was executed as early as in 2015, no steps were initiated for the formation of an Owners’ Association. They also did not arrange the opportunity for the owners to meet, and the building was also incomplete. Later, in 2018, the association was formed forcibly by the owners and then it was registered. In the complaint, various grievances touching upon the use of the amenities and the common area were raised.

2.2. The respondents/appellants herein entered appearance and contested the claim by raising a preliminary objection that the project was not liable to be registered under Section 3 (1) of the Act of 2016. This objection was primarily on the ground that the project of the appellants herein is not an ongoing project which falls for registration under Section 3 of the Act of 2016. According to the appellants, various agreements of sale were executed prior to the cutoff date i.e. 01.05.2017. Therefore, according to them, the provisions of Section 3 (1) of the Act of 2016 read with Section 13 of the Act of 2016 would clearly indicate that the registration is intended only to those cases where the promotor offers for sale, invite persons or advertise or market, book or sell the apartments after the Act of 2016 came into force.

2.3. This objection was taken up for consideration by the Kerala Real Estate Regulatory Authority, Thiruvananthapuram and vide order dated 23.01.2025, the authority rejected the objection and directed the appellants herein to complete the process of registration under the Act of 2016. Aggrieved, the appellants herein preferred an appeal under Section 43 of the Act of 2016 before the Kerala Real Estate Appellate Tribunal, Ernakulam. The Appellate Tribunal by order impugned in this appeal dated 28.05.2025, concurred with the finding of the Kerala Real Estate Regulatory Authority, Thiruvananthapuram and dismissed the appeal stating that the project is required to be registered. It is aggrieved by the order of the Appellate Tribunal, Ernakulam, that the present appeal is preferred under Section 58 of the