Delhi–Chandigarh REAT Quashes ₹10 Lakh Penalty on DDA After RERA Missed 30-Day Project Registration Deadline

Enforcing the 30-day deadline already prescribed under the RERA law, the Real Estate Appellate Tribunal for NCT of Delhi and UT of Chandigarh has held that the Real Estate Regulatory Authority cannot keep project registration applications pending indefinitely.

Setting aside a Rs 10 lakh penalty imposed on the Delhi Development Authority, the tribunal said the Authority must either approve or reject an application within that period.

A bench led by Judicial Member Lorren Bamniyal said the statute leaves no room for administrative discretion on timelines. The tribunal said the law must be applied as written.

"The words of the statute are always to be treated sacrosanct as they represent the legislative intent. Their literal and plain meaning is not required to be interfered with unless the provision runs contrary to the statement of objects and reasons of the statute or is palpably in violation of any other law.", the court said.

The case concerned DDA's high-income group housing project in Dwarka. DDA first applied for RERA registration in February 2023. Over the months that followed, the Authority flagged deficiencies and sought clarifications.

Final approval came only in April 2024, nearly 13 months later. During this period, DDA launched a Diwali housing scheme and advertised allotments in late 2023. That led RERA to impose a Rs 10 lakh penalty in June 2025 for advertising a project without registration.

Before the tribunal, DDA said nearly 90 percent of the project was already complete when it applied for registration. It said it had repeatedly asked the Authority to process the application urgently.

According to DDA, the prolonged delay left it with no option but to rely on deemed registration under the Act. RERA opposed the appeal, saying DDA's application was incomplete because the prescribed fee was not paid initially. It argued that the 30-day clock starts only after a complete application is filed. RERA also said government bodies like DDA are promoters under the law and enjoy no exemption.

The tribunal rejected this interpretation. It said the Act does not distinguish between complete and incomplete applications for the purpose of timelines. If an application has defects, the Authority must reject it within 30 days after giving the applicant a hearing. It cannot keep the application pending.

“The Authority could not have kept the application pending.” The tribunal said reading the law otherwise would make key provisions “otiose and meaningless.” It also warned that ignoring statutory timelines is “an invitation to allegations of corruption and mischief.”

Finding no justification for the delay, the tribunal set aside the Rs10 lakh penalty and directed RERA to strictly ensure that all future applications are either approved or rejected within 30 days.

For DDA – Advocates Anil Kumar Sharma, Vrinda Kapoor Dev, Vishal Vaid, Mayank Sharma, with Sandeep Kumar

For RERA – Advocate Siddharth Panda