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Supreme Court of India 2021-11-11 dismissed

M/s. NEWTECH PROMOTERS AND DEVELOPERS PVT. LTD vs STATE OF UP & ORS. ETC

Bench: 3 — Uday Umesh Lalit, Ajay Rastogi, Aniruddha Bose

In Brief

This Supreme Court judgment comprehensively addresses five key issues raised by real estate developers challenging the Real Estate (Regulation and Development) Act, 2016. The Court held that the Act applies retroactively to ongoing projects without completion certificates, protecting allottees' investments without violating constitutional rights. The Authority, not the Adjudicating Officer, determines refund claims and interest on demand; the Officer adjudges compensation separately. Section 81 validly permits delegation to a single member for handling complaints. Pre-deposit requirements for appeals (30% of penalty or full refund amount) are constitutional safeguards preventing frivolous litigation. Recovery certificates extend to principal amounts under Section 40(1). The Court rejected developers' arguments and upheld the Act's consumer-protective framework while maintaining checks through appellate remedies.

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Real Estate Regulation Consumer Protection Administrative Law Constitutional Law Statutory Interpretation Delegation of Powers Appeal Procedure Refund of Amount Home Buyers' Rights

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