Punjab & Haryana High Court Clarifies RERA Rules for Haryana Real Estate: Pre-Deposit, Adjudication Powers, and Retroactive Application Upheld

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

Date: 08.08.2026

Punjab & Haryana High Court Clarifies RERA Rules for Haryana Real Estate: Pre-Deposit, Adjudication Powers, and Retroactive Application Upheld

The High Court of Punjab and Haryana at Chandigarh delivered a comprehensive judgment addressing a series of writ petitions filed by real estate developers, infrastructure companies, and other stakeholders against the Union of India and state authorities. The core issues revolved around the interpretation and constitutional validity of several provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA), the Haryana Real Estate (Regulation and Development) Rules, 2017, and their subsequent amendments. This article provides a detailed analysis of the judgment, its background, and its implications for the real estate sector in Haryana and beyond.

Background: The Disputes and Stakeholders

The judgment consolidated numerous petitions from prominent real estate companies such as Experion Developers Pvt. Ltd., Jasmine Buildmart, SS Group, Bestech India, Parsvnath Developers, Emaar MGF Land, Supertech, BPTP, and others. These petitions challenged various aspects of the regulatory framework governing real estate projects, including:

• The requirement for promoters to make a pre-deposit before appealing orders of the Real Estate Regulatory Authority (RERA) or Adjudicating Officer (AO).
• The division of adjudicatory powers between the RERA Authority and the AO.
• The validity of amendments to Haryana Rules 28 and 29 and related forms.
• The retroactive application of RERA to ongoing projects.

Key Legal Issues Addressed

1. Pre-Deposit Requirement for Appeals (Section 43(5) of RERA)

Issue: Whether the statutory requirement for promoters to deposit at least 30% of the penalty or the total amount payable to allottees before their appeal is heard is constitutional and reasonable.

Court’s Findings:

• The High Court upheld the validity of the pre-deposit requirement, citing Supreme Court precedents that allow legislatures to impose conditions on the right to appeal.
• The Court found that promoters and allottees are distinct classes with different rights and obligations, justifying the differential treatment.
• The pre-deposit is intended to deter frivolous appeals and ensure timely delivery of real estate projects.

Example: If a developer is penalized by RERA and wishes to appeal, they must first deposit 30% of the penalty or the amount owed to the buyer, ensuring only serious appeals proceed.

2. Division of Powers: RERA Authority vs. Adjudicating Officer

Issue: Whether the amendments to Haryana Rules 28 and 29, which delineate the powers of the Authority and AO, are valid and consistent with the Act.

Court’s Findings:

• The Authority has broad powers to adjudicate complaints regarding violations of the Act, including refund, interest, and penalties.
• The AO’s role is limited to determining the quantum of compensation or interest by way of compensation for violations under Sections 12, 14, 18, and 19.
• The amended rules and forms (CRA and CAO) harmonize the adjudicatory process and are not ultra vires the Act.

Example: If a buyer seeks both a refund and compensation, the Authority first determines if a violation occurred. If so, the matter of compensation is referred to the AO for quantification.

3. Retroactive Application of RERA to Ongoing Projects

Issue: Whether applying RERA to projects that commenced before the Act’s enforcement is constitutional.

Court’s Findings:

• The Act and Haryana Rules were intended to cover ongoing projects (those without a completion certificate as of May 1, 2017).
• The retroactive application is justified by the need to protect buyers and regulate the sector, and does not violate constitutional rights.
• Agreements entered into before RERA are subject to the new legal regime for the benefit of consumers.

Example: A project started in 2015 but not completed by 2017 must register under RERA and comply with its provisions, ensuring buyers have recourse under the new law.

4. Procedural Directions and Reliefs

• The Court provided a one-time opportunity for petitioners to make the required pre-deposit by November 16, 2020, to have their appeals heard.
• All interim orders were vacated, and pending appeals were directed to proceed as per law.

Implications for the Real Estate Sector

• For Developers: The judgment reinforces the need for compliance with RERA’s procedural safeguards, especially the pre-deposit for appeals. Developers must be prepared for stricter regulatory oversight and cannot avoid RERA’s provisions for ongoing projects.
• For Homebuyers: The decision strengthens consumer protection, ensuring that buyers of ongoing projects have access to RERA’s remedies, including compensation and timely possession.
• For Legal Practitioners: The clear delineation of powers between the Authority and AO streamlines dispute resolution and reduces jurisdictional confusion.

Conclusion

The High Court’s judgment is a landmark in clarifying the regulatory landscape for real estate in Haryana. By upholding the constitutionality of key provisions and amendments, the Court has reinforced the objectives of RERA: transparency, accountability, and consumer protection in the real estate sector. Stakeholders must align their practices with these legal standards to ensure compliance and foster trust in the market.

Connected Matter

Jurisdiction of RERA Authority to Grant Refund/Interest and Scope of High Court’s Power to Waive Pre-Deposit under Section 43(5) of the RERA Act- 2016

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Source: Punjab & Haryana High Court

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