M.P. RERA cannot question trust title after Registrar's final order: High Court dismisses appeal.

The Madhya Pradesh High Court has upheld the Real Estate Appellate Tribunal's order directing the state Real Estate Regulatory Authority (RERA) to register a trust's housing project, ruling that RERA cannot second-guess the final title determination made by the Registrar under the M.P. Public Trusts Act.

The Division Bench of Acting Chief Justice Vivek Rusia and Justice Pradeep Mittal dismissed M.P. RERA's appeal under Section 58 of the Real Estate (Regulation and Development) Act, 2016, affirming that the Authority exceeded its jurisdiction by refusing registration based on its own assessment of the promoter's title over the land.


A Tale of Two Statutory Regimes

The dispute began when Shankar Ji Maharaj Trust applied for registration of its residential project "Shree Shankar Ji Niwas" in Tehsil Patan, District Jabalpur, on June 8, 2023. The application covered Khasra Nos. 231, 269/1 and 297, admeasuring 2.0957 hectares. M.P. RERA initially rejected the application in December 2023 on the ground that a trust did not qualify as a "person" under the Act. After the High Court set aside that order and remanded the matter in January 2025, RERA again refused registration on June 6, 2025—this time asserting that the trust had failed to establish clear and marketable title under Section 4(2)(l)(A) read with Rule 6(1)(a) of the State Rules.

The bone of contention was that revenue records since 1954-55 showed the land in the name of "Shri Shankar Ji Maharaj Temple," which RERA treated as an entity distinct from the trust. RERA insisted that the trust produce the trust deed and land-donation documents, which it claimed were never furnished despite multiple deficiency notices.

The Tribunal, however, set aside that order on January 23, 2026, holding that the Registrar of Public Trusts, Patan, had already conducted a statutory inquiry under Section 5 of the M.P. Public Trusts Act and recorded the land as trust property on June 2, 1986. A subsequent order on December 14, 2021, granted the trust permission to develop the land. The Tribunal ruled that these findings had achieved finality under Section 7(2) of the Trusts Act and could not be reopened by RERA.


Arguments: Statutory Finality v. Regulatory Prudence

M.P. RERA argued that it acted within its mandate under Sections 4 and 5 of the RERA Act. Despite repeated opportunities, the trust had not produced the required title documents. Mere registration under the Trusts Act, RERA contended, did not itself confer ownership of the land, and the Registrar had no jurisdiction to adjudicate title to immovable property—that could only be done by a civil court. RERA also relied on the Supreme Court's decision in State of Madhya Pradesh v. Pujari Utthan Avam Kalyan Samiti (2021) to argue that temple property vests in the deity as a juristic person, and no other person, including the trust, can claim ownership.

The trust countered that the project land had been the subject of a full inquiry by the Registrar under Section 7 of the Trusts Act, and the resulting entry had never been set aside by a civil court or modified. It argued that the orders attained finality under Section 7(2), which provides that an entry made in the register of public trusts "shall be final and conclusive" subject only to a civil suit. The Authority, not being a civil court, had no jurisdiction to reopen that finality or to treat the trust and the deity/temple as distinct entities.


High Court's Analysis: When One Statutory Authority Cannot Override Another

The Court framed the narrow question: whether the Tribunal's order suffered from any error going to jurisdiction or gave rise to a substantial question of law warranting interference under Section 58(1), which confines the appeal to grounds under Section 100 of the CPC.

Rejecting RERA's appeal, the Court held that while Section 4(2)(l)(A) requires a promoter to demonstrate legal title, this regulatory power cannot be stretched to transform RERA into a title-adjudicating court. The Authority can verify the existence of valid title documents but cannot sit in appeal over a final order passed by the Registrar under a special law.

The Court underscored the fundamental principle of administrative law: quasi-judicial bodies must operate within the boundaries of their parent statutes. The Registrar of Public Trusts is specifically empowered under the Trusts Act to hold inquiries and make final determinations about trust property. Section 7(2) makes those entries "final and conclusive" unless challenged before a civil court. A regulatory authority created under a different enactment cannot disregard that finality.

The Court also distinguished the Pujari Utthan case, noting that it dealt with an unauthorized priest claiming personal bhumiswami rights over government temple land—a scenario entirely different from a legally recognized, registered public trust handling its estate.

"The distinction the Authority sought to draw, between the respondent/Trust and the Temple in whose name some of the earlier revenue entries stood, cannot survive scrutiny once it is seen that the Registrar of Public Trusts, exercising the very inquisitorial jurisdiction the Trusts Act confers on him for precisely this purpose, has already found the land to be the property of the Trust," the Bench observed.

The Court further noted that a temple deity, being a juristic person, remains a minor in law and must act through a lawful management agency. A duly registered public trust is the legally recognized face of the deity. Revenue records showing the temple's name are inherently represented by the registered trust.


Key Observations

"Once a competent statutory authority under the Public Trusts Act has conducted a formal inquiry and officially recorded a specific piece of land as trust property, that entry attains statutory finality. A regulatory body established under a different special enactment, such as the Real Estate Regulatory Authority (RERA), has no jurisdiction to look behind or bypass this finality."

"A quasi-judicial authority such as the Authority, created under a separate statute for the limited purpose of regulating the real estate sector, cannot record a finding at variance with a final and conclusive determination made by the authority statutorily empowered to make that very determination."

"The distinction drawn by the Authority between the Temple (deity) and the Trust is legally unsustainable. A temple deity, being a juristic person, remains a minor in the eyes of law and must act through a lawful management agency. A duly registered Public Trust is the legally recognized face of the deity."


Final Decision: Appeal Dismissed, Registration Stands

The High Court found no infirmity, legal or jurisdictional, in the Tribunal's order dated January 23, 2026. The appeal was dismissed as devoid of merit, and the Tribunal's direction to M.P. RERA to register the trust's project was affirmed. No order as to costs was made.

The ruling clarifies the interplay between RERA's title verification power and the finality of findings under the M.P. Public Trusts Act. It establishes that when a statutory authority under a special law has already determined the character of land as trust property, RERA cannot revisit that determination. The judgment reinforces the principle that regulatory authorities must respect the jurisdictional boundaries set by their enabling statutes, and that the finality of quasi-judicial orders under one enactment cannot be undermined by a different regulatory body.