The definition of 'promoter' under the Real Estate Act includes welfare societies, irrespective of profit motives, in context of members' housing.

ANIL KSHETARPAL, J.

1. Through the present Appeal filed under Section 58 of the Real Estate (Regulation & Development) Act, 2016 [hereinafter referred to as “the Act”], the Appellant assails the correctness of order passed on 07.02.2025 by the Ld. Real Estate Regulatory Authority Appellate Tribunal (RERA Appellate Tribunal), NCT of Delhi and UT of Chandigarh, New Delhi whereby an Appeal on account of failure to pre-deposit the decretal amount, as ordered by the Real Estate Signature Not Verified Signed By:JAI RERA APPEAL 5/2025 Page 1 of 8 Regulatory Authority as mandated under Section 43(5) of the Act, was dismissed.

2. The Constitutional validity of Section 43(5) of the Act has been upheld by the Hon‟ble Supreme Court vide judgment dated 11.11.2021 passed in Civil Appeal Nos. 6745-6749 of 2021 captioned as M/s Newtech Promoters and Developers Pvt. Ltd. Vs. State of UP and Ors etc

3. Learned counsel representing the Appellant while submitting that the Appellant is not a „promoter‟ as defined in the Act, has made the following submissions:

i. Appellant is a welfare society registered under the Societies Registration Act, 1860; and ii. Appellant has neither carved out the plots nor got the buildings constructed.

4. Before analysing the arguments, it is necessary to note brief and relevant facts. As per the case of the Appellant, the Society was established to provide cost effective housing for Lok Sabha Secretariat officials.

5. In 2013, the Respondent Nos. 1, 2 and 3 became members of the Society by paying a fee of Rs. 5,000/- (Rupees Five Thousand only). Subsequently, each of the Respondent paid Rs.12,40,250/- (Rupees Twelve Lakh Forty Thousand Two Hundred and Fifty Only) which was utilized by the Society to purchase land admeasuring 85 Bigha 3 Biswa in village Khera Kalan, located in P-1 Zone.

Signature Not Verified Signed By:JAI RERA APPEAL 5/2025 Page 2 of 8

6. Thereafter, on account of reduction of Floor Area Ratio (FAR), under revised Land Pooling Policy, from 400 to 200 by the Delhi Development Authority (DDA), the Society vide Circular No. SAWS/2/2018 dated 16.11.2018 requested its members to provide their inputs.

7. On 31.01.2019 vide Circular No. SAWS/1/2019, the Society offered its members the option to withdraw.

8. Subsequently, the Society on 15.12.2021 expressed its interest in participating in DDA‟s Land Pooling Policy, 2018 by submitting details on the official portal, however, no progress was evident as the houses/ apartments were never constructed.

9. The Respondents who are members of the Society filed a complaint with Real Estate Regulatory Authority (RERA) seeking a refund with 18% interest which was allowed on 21.11.2023 directing the Society to refund Respondents‟ contribution with interest at the rate of 10.75% p.a. (MCLR+2%) from the date of payment of each sum until the date of its actual return.

10. In accordance with Memorandum of Association of the Society, the aims and objective of the Society is to acquire land for development and construction of residential houses/ flats for its members at cost price which shall be shared by the members of the Society.

11. The expression „promoter‟ has been defined in Section 2(zk) of the Act, the same has been reproduced hereunder:

“promoter means—

Signature Not Verified Signed By:JAI RERA APPEAL 5/2025 Page 3 of 8 (i) a person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees; or (ii) a person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project, whether with or without structures thereon; or (iii) any development authority o