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The Uttarakhand High Court has upheld a RERA order requiring Paratus Real Estates to deposit half of the penalty amount before filing its appeal, rejecting the promoter's request to limit the deposit to thirty per cent. The order followed RERA Dehradun's directive to refund two homebuyers with accrued interest for delays in project delivery. The court clarified that the legislation must be interpreted strictly to safeguard consumer rights, thereby reinforcing the accountability of real estate developers under Indian regulatory law.
The Uttarakhand High Court has affirmed RERA Dehradun's decision mandating that Paratus Real Estates Pvt Ltd deposit 50% of the penalty before its appeal could be considered. The company had sought permission to proceed with a reduced deposit of 30% under provisions of the Real Estate (Regulation and Development) Act, 2016, arguing that the allottees had themselves defaulted on EMI payments. Advertisement
Justice Pankaj Purohit, presiding over the single bench, dismissed these arguments and rejected the petitions filed by the firm. He noted that the objective of the Act is to protect homebuyers' interests and therefore must be enforced with strict interpretation.
Previously, RERA Dehradun had directed the promoter to refund Rs 22,69,159 to one allottee and Rs 13,50,000 to another, along with 11.10% annual interest calculated from the dates of their respective payments. The authority specified that refunds were to be completed within forty-five days, failing which additional interest would continue to accrue. Paratus Real Estates appealed the directive under Section 43 of the Act, but its request for a reduced deposit was rejected as the court found no illegality in the tribunal's order.
By sustaining the fifty per cent deposit requirement, the Uttarakhand High Court has reaffirmed the uncompromising enforcement of RERA provisions in disputes between developers and allottees. The judgment highlights that appeals cannot be entertained on grounds of financial convenience and that promoters are expected to meet strict compliance standards.
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