WBREAT: Extension Of Project Registration Under Section 6 Of RERA Cannot Exceed One Year

Background Facts

Builder (Respondent No. 1) applied for registration of its housing project named “Essense” before the West Bengal Housing Industry Regulatory Authority under the West Bengal Housing Industry Regulation Act, 2017. The Authority granted registration for 4.8 years (valid from September 6, 2019 to June 30, 2024).

During construction, the COVID-19 pandemic disrupted project timelines. Considering this force majeure situation, the Authority extended the project's registration by nine months, making it valid up to March 30, 2025. Subsequently, the builder sought another extension and applied for registration to be further extended till December 31, 2026.

The homebuyer (Appellant) had booked a flat in the project for Rs.74,64,164. A Letter of Allotment was issued on January 3, 2022 followed by an agreement for sale on March 28, 2022, under which the builder was to hand over possession by June 30, 2024. The homebuyer had already paid Rs.58,06,744 in several instalments.

Homebuyer contended that the Authority had exceeded its powers under Section 6 of the RERA Act by extending the registration till December 31, 2026 without affording him an opportunity of hearing. He claimed to have suffered losses due to the delay in possession.

Being aggrieved, Homebuyer filed an appeal before the Tribunal challenging the Authority's order dated January 31, 2025 and seeking compensation for the delay.

Observation and Direction by Tribunal

In order to determine whether the Homebuyer has locus to file the case, the Tribunal referred to Section 44(1) of the RERA Act which permits “any person aggrieved” by an order of the Authority to file an appeal before the Appellate Tribunal.

Tribunal held that since the impugned order directly affects the Homebuyer's rights as an allottee, he qualifies as a “person aggrieved” under Section 44(1) and therefore has the locus standi to challenge the order.

Tribunal referred to Section 6 of the RERA Act which allows the Authority to extend project registration due to force majeure without any fixed time limit but limits discretionary extensions “in reasonable circumstances” to a maximum of one year. It held that the two segments of Section 6 operate distinctly, force majeure extensions are open ended while other extensions cannot exceed one year.

Tribunal observed that the builder's plea for further extension was based on the stop construction order issued by Howrah Municipal Corporation and subsequent relief granted by the Supreme Court. It held that these circumstances were reasonable grounds for extension under Section 6. However, the Regulatory Authority exceeded its power by granting an extension beyond one year.

Tribunal therefore held that the registration should have been extended only up to March 30, 2026 instead of December 31, 2026.

Lastly, the Tribunal dismissed the claim for penalty and compensation at this stage but clarified that the homebuyer is free to approach the appropriate forum under Section 31 of the RERA Act to seek refund, interest or compensation as per law.

Case – Suman Bhaumik Versus Periwal Constructions L.L.P. & anr

Citation - WBREAT/Appeal No. – 010/2025