High Court of Punjab & Haryana Remands RERA Registration Dispute: Judicial Scrutiny of Regulatory Compliance, Contractual Rights, and Project Transparency

Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

Date: 05.08.2026

High Court of Punjab & Haryana Remands RERA Registration Dispute: Judicial Scrutiny of Regulatory Compliance, Contractual Rights, and Project Transparency

This article provides an in-depth look at the recent decision by the High Court of Punjab & Haryana in the RERA Appeal No. 48 of 2022, involving Tri Star Hotels Private Limited (the appellant) and Curo India Private Limited (the respondent), and its implications for real estate regulation, project registration, and stakeholder rights in India.

Background of the Dispute

1. The Initial Agreement
   • In 2006, Tri Star Hotels Pvt. Ltd. entered into an agreement with Dynamic Continental (now Curo India Pvt. Ltd.) to purchase 1.53 acres of land for developing a five-star hotel in Mullanpur-Garibas, Punjab.
   • Tri Star paid Rs. 6.5 crores as part of a total consideration of Rs. 12.5 crores.
   • The agreement was contingent on obtaining Change of Land Use (CLU) permissions and other regulatory approvals.
2. Breakdown and Allegations
   • In 2008, Curo India informed Tri Star that due to insufficient frontage (120 ft. instead of the required 200 ft.), CLU could not be obtained, frustrating the agreement.
   • Tri Star alleged that Curo India later developed the same land for other commercial and residential projects (Curo One Part I & II) without honoring the original agreement or refunding the money.
   • Tri Star sought revocation of Curo India’s RERA registration and compensation.

Legal Proceedings and Key Contentions

Appellant’s (Tri Star) Arguments

1. Violation of RERA and Transparency
   • Curo India failed to disclose the prior agreement and did not deposit 70% of the collected funds in a separate account as required by RERA.
   • The Non-Encumbrance Certificates (NECs) submitted for project registration were allegedly flawed and not in compliance with statutory requirements.
2. Right to Refund and Penalty
   • As per the agreement, failure to obtain CLU within 24 months entitled Tri Star to a refund and penalty.
   • Tri Star argued that the main grievance was not specific performance but revocation of project registration due to regulatory violations.

Respondent’s (Curo India) Arguments

1. Frustration of Contract
   • The agreement was frustrated due to a government notification requiring a 200 ft. frontage for hotels, which the land did not have.
   • The transaction was a commercial contract, not a promoter-allottee relationship under RERA.
2. Jurisdiction and Limitation
   • The dispute arose before the enactment of RERA (2016), and thus, the authority lacked jurisdiction.
   • Tri Star’s claim was time-barred due to a 12-year delay in seeking legal remedy.

Court’s Analysis and Findings

1. Nature of the Agreement and Rights

• The court found that the agreement was for the purchase of land, not for an allotment in a registered real estate project.
• At the time of the agreement, Curo India was not a registered promoter, nor was the land part of a registered project.
• Tri Star was not considered an “allottee” under RERA.

2. Delay and Inaction

• There was a 12-year gap with no legal action or communication from Tri Star, undermining the enforceability of the agreement.
• The court held that the agreement had lost its legal significance due to prolonged inaction.

3. Irregularities in Project Registration

• The court noted serious lapses in the registration and revision of the Curo One projects:
  • NECs were not issued as per statutory requirements (not through a qualified advocate or proper revenue authority).
  • Successive revisions of project registration were granted without proper legal basis or compliance with Section 14 of RERA.
  • The transfer of project promoter without the consent of two-thirds of allottees was flagged as irregular.

4. Authority’s Responsibility

• The Real Estate Regulatory Authority (RERA) failed to ensure compliance with mandatory documentation and transparency norms.
• The court emphasized the importance of NECs and proper disclosure for safeguarding allottees and stakeholders.

Final Judgment and Directions

• The High Court set aside the orders of the RERA Authority and the Appellate Tribunal, remanding the matter back to the Authority for fresh consideration of the registration and revised registration of both Curo One projects.
• The Authority was directed to pass a new order in accordance with the law, specifically scrutinizing the validity of NECs and compliance with RERA provisions.
• The liberty for Tri Star to maintain a complaint for non-disclosure of vital information was preserved.

Key Takeaways for Stakeholders

1. Strict Compliance with RERA
   • Promoters must ensure all statutory documents, especially NECs, are obtained and submitted as per the law.
   • Any manipulation or dilution of mandatory clauses in agreements or declarations can lead to regulatory action.
2. Timely Legal Action
   • Parties must act promptly to enforce contractual rights; prolonged inaction can render agreements unenforceable.
3. Transparency and Disclosure
   • Authorities and promoters are both responsible for maintaining transparency, especially regarding encumbrances and prior agreements.
4. Remedies and Revocation
   • RERA provides for revocation of project registration in cases of default, fraud, or unfair practices, but due process and proper documentation are essential.

Conclusion

This case underscores the critical importance of regulatory compliance, transparency, and timely action in real estate transactions. It also highlights the evolving role of RERA and the judiciary in protecting the interests of all stakeholders in the real estate sector.

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Source: Punjab & Haryana High court

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