Bihar RERA Drops Suo Motu Case Against Developer; Finds No Advertisement Of Unregistered Project

The Bihar Real Estate Regulatory Authority has dropped suo motu proceedings against developer Kushika Tradserv Pvt Ltd in relation to its project “Basmati Vatika."

The Authority held that the action, initiated under Sections 35 and 59 of the Real Estate (Regulation and Development) Act, 2016, could not be sustained, as no advertisement of the project was found.

Inquiry Commissioner Sanjaya Kumar Singh directed the developer to apply for registration of the project.

The Authority also restrained the promoter from advertising, marketing, or selling any unit until registration is obtained. It requested the Inspector General of Registration, Bihar to ensure that no sale deeds are executed in respect of the project until registration is secured.

Explaining its reasoning, the Authority observed that "after perusing the material placed on record and considering the submissions of both the parties, it is clear that project has been applied for registration with the Authority and that no advertisement has been found at the work site or on online platform which could establish contravention of section 3 of the Real Estate (Regulation and development) Act 2016".

The proceedings began with a preliminary notice issued on November 15, 2024. This followed the Authority's finding that construction at the site had continued even after the developer's registration application, filed on June 13, 2024, was rejected on September 8, 2024 due to documentary defects.

When the Authority later ordered an inspection on January 20, 2026, the site visit revealed that the project was only around 20% complete. Significant construction activity was still ongoing.

During this inspection, the Authority did not find any advertisement of the project, either at the site or on online platforms. There were also no display boards or promotional material at the location.

On this basis, it held that contravention of the requirement of prior registration under the Act was not established in the absence of any advertisement, and the proceedings were liable to be dropped.

"The Promoter is further restrained from advertising, marketing, or effecting sale of any unit of flat/ shop/ part thereof in the said project until due registration is duly obtained under the Act," the Authority held.

For Petitioner (Authorised Representative of RERA): Advocate Ojaswi Ishani.

For Respondent (Kushika Tradserv Pvt Ltd): Advocate Sumit Kumar.