Delhi High Court Ruled Deemed Occupancy Certificate Claim Cannot Override RERA

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

Date: 02.11.2026

Delhi High Court Ruled Deemed Occupancy Certificate Claim Cannot Override RERA

The Delhi High Court has dismissed two appeals by CJ Infrastructure Pvt. Ltd., holding that the developer could not avoid the Real Estate (Regulation and Development) Act, 2016 (RERA) on the basis of a claimed “deemed” occupancy certificate and was required to comply with the statutory pre-deposit condition before its appeals could be heard.

Background: Metroplex East commercial complex

CJ Infrastructure developed Metroplex East, a commercial complex at 21, District Centre, Laxmi Nagar, Delhi. The project comprises 197 units along with common areas, including the entrance lobby, elevators and staircases. The developer stated that construction was completed on 14 February 2013 and that an architect had certified the building as fit for occupation.

According to the company, it applied to the Delhi Development Authority (DDA) for an Occupancy-cum-Completion Certificate (OCC) in 2013 and early 2014. It argued that, because the DDA did not respond within the applicable period, the OCC should be treated as having been granted by operation of the building bye-laws.

Between 2013 and 2015, the company sold or allotted 149 commercial units and executed registered conveyance deeds in favour of purchasers. Later, several purchasers initiated proceedings under RERA, principally alleging that the developer had not obtained a formal OCC for the building.

The central dispute: Was the OCC deemed to have been granted?

The developer’s principal argument was that the project had effectively been completed before RERA came into force and that a deemed OCC had arisen because of the DDA’s alleged inaction. On that basis, it contended that the RERA authorities lacked jurisdiction over the complaints.

The Court did not accept this position. It examined the record placed by the DDA and highlighted key deficiencies:

• The developer claimed that it had applied for completion on 14 February 2013, but the Fire Safety Certificate relied upon was dated 30 October 2013. The certificate was required for a completion application.
• The OCC-fee receipt produced by the developer was dated 20 April 2017, approximately four years after the claimed OCC application.
• The DDA reported deviations from the sanctioned plan.
• The application was scrutinised under the Unified Building Bye-Laws, 2016, and the stated deficiencies were not rectified despite opportunities to do so.
• The DDA rejected the OCC application on 8 September 2021.

The Court held that a deemed OCC could not be claimed in these circumstances. It noted that deemed approval requires the applicant to have met the necessary requirements, including payment of applicable fees, and cannot authorise conduct contrary to lease conditions, the master plan, regulations or building bye-laws.

Most importantly, the Court found that no OCC existed when the appeals were before the Real Estate Appellate Tribunal (REAT). Therefore, the project remained subject to RERA.

Why the RERA pre-deposit requirement applied

The second major issue concerned Section 43(5) of RERA. This provision requires a promoter challenging an order before the appellate tribunal to first deposit at least 30% of the penalty, or such higher percentage as the tribunal directs, or the total amount payable to the allottee, including interest and compensation, depending on the nature of the order.

The REAT had required CJ Infrastructure to deposit the full adjudicated amounts as a condition for continuing its appeals. When the company did not make that deposit, the REAT dismissed the appeals.

The Delhi High Court upheld that decision. It emphasised that the statutory wording, including “it shall not be entertained,” makes pre-deposit a mandatory threshold condition for a promoter’s appeal. The Court relied on the Supreme Court’s ruling in Newtech Promoters and Developers Pvt. Ltd. v. State of Uttar Pradesh, which had held that this requirement is not unconstitutionally burdensome and serves to protect allottees’ financial interests.

The Court also rejected the developer’s offer to provide immovable-property security instead of making the deposit. RERA contains no provision permitting such a substitute.

Judgment and implications

The High Court found no error in the REAT’s orders and dismissed both appeals. It nevertheless allowed the appellants an opportunity to seek revival of their REAT appeals within 30 days of the judgment, provided they comply with the applicable pre-deposit condition under Section 43(5).

The ruling reinforces two important principles for real-estate developers:

1. A deemed occupancy certificate cannot be assumed merely from alleged administrative inaction. The applicant must show compliance with the applicable approval requirements, including supporting documentation, fees and rectification of identified shortcomings.
2. The RERA pre-deposit requirement is mandatory for promoters’ appeals. A developer cannot ordinarily have an appeal heard by REAT without first making the required statutory deposit, and offering property as security is not an authorised alternative.

The judgment, pronounced on 29 August 2025 by a Division Bench of Justice Anil Kshetarpal and Justice Harish Vaidyanathan Shankar, underscores the courts’ approach of enforcing RERA’s safeguards for allottees while requiring strict compliance from promoters seeking appellate relief.

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Source: Delhi High Court

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