Establishment and Jurisdiction of the Real Estate Appellate Tribunal under RERA

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

Date: 22.08.2026

Establishment and Jurisdiction of the Real Estate Appellate Tribunal under RERA

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to bring transparency, accountability, and efficiency to the real estate sector in India. A key feature of RERA is the establishment of the Real Estate Appellate Tribunal, which serves as the primary forum for appeals against decisions of the Real Estate Regulatory Authority (RERA Authority) and adjudicating officers. The case of Radicon Infrastructure And Housing Private Limited v. Dhaneshwari Devi Dhyani provides important judicial interpretation on the Tribunal’s establishment, jurisdiction, and functioning.

Background of the Case

• Parties Involved:
  • Appellant: Radicon Infrastructure And Housing Private Limited (promoter/builder)
  • Respondent: Dhaneshwari Devi Dhyani (allottee)
• Dispute: The respondent booked a flat in 2013. Due to disputes over charges and delayed possession, she filed a complaint before the U.P. Real Estate Regulatory Authority, seeking relief from various penalties and compensation for delay.
• Regulatory Authority’s Order: The Authority ordered the builder to deliver possession and pay 24% interest on the deposited amount from 2015 until possession. The builder appealed this decision.

Key Legal Questions Addressed

1. Can a Designated Appellate Tribunal Continue Beyond One Year?
   • Section 43(1) of RERA mandates the establishment of a Real Estate Appellate Tribunal within one year of the Act coming into force. However, the proviso allows the government to designate an existing tribunal to hear appeals until the regular tribunal is established.
   • The court clarified that the designated tribunal can continue to function beyond one year if the regular tribunal is not yet established, to avoid chaos and ensure consumer protection.
2. Does Appointment of Chairperson and Members Establish the Tribunal?
   • The government appointed the Chairperson and members before officially establishing the tribunal by notification.
   • The court held that the tribunal is established only upon official notification under Section 43(1), not merely by appointing its members. The functioning of the designated tribunal remains valid until the regular tribunal is formally established and authorized.
3. Jurisdiction of the Designated Tribunal After Establishment of the Regular Tribunal
   • Once the regular tribunal is established, all pending matters before the designated tribunal must be transferred to the new tribunal. Orders passed by the designated tribunal before this transfer remain valid.

Judicial Reasoning and Interpretation

• Mandatory vs. Directory Provisions:
  • While the Act uses the word “shall” regarding the one-year period for establishing the tribunal, the court interpreted this timeline as directory, not mandatory. This means that failure to establish the tribunal within one year does not invalidate its later establishment or the actions of the designated tribunal.
  • The court emphasized that statutory interpretation should not frustrate the Act’s objectives or cause injustice to parties who have no control over government delays.
• Substantial Compliance:
  • The court applied the principle of substantial compliance, holding that as long as the government eventually establishes the tribunal and authorizes its members, minor procedural lapses or delays do not nullify the tribunal’s actions.

Practical Implications for Stakeholders

1. For Homebuyers and Allottees:
   • The appellate mechanism under RERA remains accessible even if there are delays in establishing the regular tribunal. Orders passed by designated tribunals are valid until the regular tribunal takes over.
2. For Builders and Promoters:
   • Appeals must be filed before the appropriate tribunal as designated by the government. Builders are required to deposit a portion of the penalty or compensation before their appeal is entertained.
3. For Government Authorities:
   • There is a statutory obligation to establish the Real Estate Appellate Tribunal within one year, but delays do not invalidate the process. However, timely establishment is crucial for effective dispute resolution.

Conclusion

The judgment in Radicon Infrastructure And Housing Pvt. Ltd. v. Dhaneshwari Devi Dhyani clarifies that the establishment of the Real Estate Appellate Tribunal under RERA is mandatory, but the one-year timeline is directory. The functioning of designated tribunals remains valid until the regular tribunal is formally established and authorized. This interpretation upholds the Act’s objectives of consumer protection and efficient dispute resolution in the real estate sector.

Connected Matter

Discretion and Due Process: Tribunal’s Power to Demand Higher Pre-Deposit under RERA Examined

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Source: Allahabad High Court

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