The court affirmed that registration of real estate projects under the Real Estate Act is mandatory before obtaining Final Approval under the KTCP Act, emphasizing consumer protection and compliance with statutory requirements.

ORAL ORDER

The petitioner has commenced plotted development in an extent measuring 2 acres 09 guntas in Sy No. 46/5, 50/3, 46/1, 46/3 and 50/2 of Guluru Village and Hobli, Tumakuru Taluk. This development, for convenience, is referred to as ‘the Project’, and this extent of 2 acres and 09 guntas is referred to as the ‘Subject Property’. The Second respondent – the Tumakuru Urban Development Authority ['the Planning Authority'] has accorded Provisional Approval under section 17 [2-A] of the Karnataka Town and Country Planning Act, 1961 [the KTCP Act] and then issued the Work Order dated 21.08.2023 [Annexure - B] permitting commencement of the Project. However, the Planning Authority has not issued the Final Approval under section 17 [2-B] of the Karnataka Town and Country Planning Act, 1961 [the KTCP Act].

2. The Planning Authority has issued the impugned Endorsement dated 28.02.2024 [Annexure - G] calling upon the petitioner to register the Project with the Karnataka Real Estate Regulatory Authority [the fourth respondent and referred to as ‘the Regulatory Authority’] and then apply for Final Approval under section 17 [2-B] of the KTCP Act. The Planning Authority has issued this Endorsement because the Regulatory Authority has addressed Communication dated 20.02.2024 [Annexure - H]. The Regulatory Authority, by this Communication, has informed the Planning Authority:

[a] that every Real estate project involving construction which is in excess of 500 square meters [or 8 units] and involves plot development must be compulsorily registered under the provisions of the Real Estate (Regulation and Development) Act, 2016 [for short, the Real Estate Act], and

[b] that the condition that the Real estate project must be registered under the Real Estate Act must be incorporated in the Provisional Approval and the Final Approval should not be granted under unless a real estate project is registered.

The petitioner has called in question the Endorsement dated 28.2.2024 [Annexure – G] and the Communication dated 20.02.2024 [Annexure – H].

3. The petitioner's grievance with these impugned Endorsement and Communication is because of the stipulation that Final Approval under KTCP Act shall not be granted unless his Project is registered under the provisions of the Real Estate Act. This grievance is premised in the assertion that the Real Estate Act does not stipulate that a Planning Authority must withhold approval [Final Approval] under Section 17[2-B] of the KTCP Act for a project until the concerned real estate project is registered under Section 3 thereof even if the proponent has completed such project from out of its own funds without marketing/ selling [or offering to sell] any part of the Project and proposes to market/sell [or offer to sell] only after registering such project under the Real Estate Act.

4. A brief statement of the facts: As first mentioned, the Planning Authority has accorded Provisional Approval for the Project under section 17[2-A] of the KTCP Act on 01.07.2023, The petitioner has not produced a copy of this Provisional Approval, but the Planning Authority has produced it as Annexure – R 1 to it Statement of objections. stipulating, amongst others, that the petitioner must register the Project with the Regulatory Authority under the Real Estate Act. The Planning Authority has next issued the Work Order dated 21.08.2023 The petitioner has begun the execution of the Project and the completion of certain works in the Project is certified by the following authority.

[i] An Engineer with the concerned Zilla Panchayat: This Engineer has addressed the Communication dated 05.02.2024 to the Planning Authority confirming that the petitioner has completed the execution of laying water pipes and sewage lines [Annexure – C].

[ii] The Development Officer of the concerned Town Panchayat. This Officer has issued Endorsement dated 07.02.2024 listing the works completed by the petitioner including the works such as constructing fence