Introduction

The case of Mala Sharma v. Shipra Estate Limited & Jai Krishna Estate Developers Private Limited was adjudicated by the Uttar Pradesh Real Estate Regulatory Authority (RERA) on March 11, 2022. This case centered around the appellant, Mala Sharma, seeking redressal for the non-allotment of a residential plot in the "Shipra Integrated Township" project. The key issues revolved around the jurisdiction of RERA in unregistered projects and whether the appellant qualified as an "allottee" under the Real Estate (Regulation and Development) Act, 2016 (RERA Act).

The appellant entered into an agreement with the respondents for the purchase of a residential plot, paid the agreed amount in full, but failed to receive possession within the stipulated time. Subsequently, the appellant approached RERA for immediate possession and delay interest, which led to the present legal scrutiny.

Summary of the Judgment

The Uttar Pradesh RERA dismissed the appellant's complaint, holding that the "Shipra Integrated Township" project was not registered under RERA and thus fell outside the jurisdiction of the Regulatory Authority. The court determined that since the project did not involve development work as defined under Section 2(zj) of the RERA Act, it was not mandatory to register the project. Additionally, the appellant was deemed not to be an "allottee" as per Section 2(d) of the Act. Consequently, RERA lacked the authority to adjudicate the matter, and the appeals were dismissed without any orders on costs.

Analysis

Precedents Cited

The judgment references the Supreme Court case Newtech Promoters and Developers Pvt. Ltd. v. State of U.P. (Civil Appeal No (s). 6745-6749 of 2021), decided on November 11, 2021. In this landmark decision, the Supreme Court clarified that RERA's applicability is retrospective and does not cover projects that have already been completed or have been granted a completion certificate prior to the Act's enforcement. This precedent was pivotal in determining the non-retroactive applicability of RERA in Mala Sharma's case.

Legal Reasoning

The court meticulously examined whether the appellant qualified as an "allottee" under the RERA Act. As per Section 2(d) of the Act, an "allottee" is defined as someone to whom a plot, apartment, or building has been allotted, sold, or transferred by the promoter. In the present case, the agreement between the appellant and respondents was for the purchase of undeveloped land with the future promise of developing an integrated township. Since the project was in the pre-launch phase and not registered under RERA, the appellant did not fit within the statutory definition of an "allottee."

Furthermore, the court highlighted that RERA's jurisdiction is contingent upon the registration of the real estate project. The respondents had not yet launched the project as per the Integrated Township Policy, 2014, and were in the process of acquiring the necessary land and approvals. Therefore, the project did not meet the criteria under Section 2(zj) of the Act, which defines a "real estate project" as involving development work.

Impact

This judgment reinforces the importance of project registration under RERA for regulatory oversight. Developers must ensure timely registration of their projects to avail of RERA's jurisdiction, thereby safeguarding consumer interests. For consumers, it underscores the necessity to verify a project's registration status before investment. Future cases will likely reference this judgment to delineate the boundaries of RERA's authority, especially concerning pre-launch phase projects.

Complex Concepts Simplified

Conclusion

The Mala Sharma v. Shipra Estate Limited & Jai Krishna Estate Developers Pvt. Ltd. judgment serves as a crucial reminder of the prerequisites for invoking RERA's protections. It emphasizes that only registered projects, and individuals recognized as allottees under the RERA Act, fall within the Authority's purview. For developers, timely registration is imperative to comply with regulatory frameworks and facilitate consumer trust. Conversely, consumers must diligently verify the registration status of real estate projects to ensure their investments are safeguarded under RERA's mandate. This decision not only clarifies the boundaries of RERA's jurisdiction but also contributes to the evolving landscape of real estate regulation in India.