The status of a "promoter" and the applicability of project registration under real estate legislation is strictly predicated upon the existence of a "sale" component. Entities lacking the legal authority to transfer absolute ownership of units and relying solely on leasehold arrangements fall outside the regulatory framework.

JUDGMENT :

SYED QAMAR HASAN RIZVI, J.

1. Sri Shobhit Mohan Shukla, learned counsel for the appellant and Sri Sudeep Seth, Senior Advocate assisted by Sri Syed Aftab Ahmad, learned counsel for the respondent are present.

2. By means of the instant appeal under section 58 of the Real Estate (Regulation and Development) Act, 2016 the U.P. Real Estate Regulatory Authority, the Appellant, has challenged the order dated 25.09.2025 passed by the Real Estate Appellate Tribunal (REAT), Lucknow in Appeal No. 135 of 2025 ( M/s. Maa Bhagwati Commercial Reality N Resorts LLP vs. UP Real Estate Regulatory Authority ) thereby directing the Regulatory Authority to grant registration for the respondent's project and to grant Registration Number including a Login ID and Password within 7 days while setting aside the order dated 10.03.2025 passed by the Real Estate Regulatory Authority (RERA) Lucknow.

3. The facts, in nut-shell, as culled out from the pleadings available on record, are that a public charitable trust, namely 'Udasin Sangat Rishi Aashram, Ranopali, Ayodhya, Uttar Pradesh, (hereinafter referred to as Trust,) registered in the Office of the Sub-Registrar, Sadar, Ayodhya, vide Registration No. 275/2019 is the owner of the plots of land having Gata Nos.309 and 328, situated at village Ranopali, Pargana Haveli Awadh, Tehsil Sadar, District Ayodhya, admeasuring, 26000.58 sq.mtrs.

4. The above-mentioned Trust granted lease for a period of 29 years and 11 months in favour of the respondent/appellant by means of Registered lease dated 29.09.2023, to construct a commercial building, on a yearly consideration at the rate of Rs.60,00,000/- with five per cent increase after every five years. The term of the 'lease' is renewable by mutual consent.

5. The Respondent/Appellant having obtained the relevant and necessary clearances, applied with the Uttar Pradesh Real Estate Regulatory Authority (hereinafter referred to as UP RERA) for registration of its project, 'Samrajya', on 02.02.2025, vide application ID 1426755, in terms of Section 4 of the Real Estate (Regulation and Development) Act, 2016 and in conformity with the Standard Operating Procedure (SOP) of the real estate project issued by U.P. Real Estate Regulatory Authority. However, the Regulatory Authority vide communication dated 06.02.2025, inter-alia, raised objection, as is reflected from the impugned order, alleging that from the land details it is not clear whether the land owner /lessor is having leasing rights and that it is also not clear as to how could the land owner give sub-leasing rights to the lessee, as the property belongs to a Trust.

6. The Respondent/Appellant acknowledged the objections/notice and submitted a reply vide communication dated 11.02.2025, inter alia, stating that the leasing rights in favour of the applicant firm are clearly ascertainable from the trust-deed itself, which had already been uploaded on the portal. Along with the same, copies of the Khatauni extracts evidencing the title of the trust over the plots in question were also furnished.

7. The Regulatory Authority, however, vide communication dated 21.02.2025 re