Tribunal overturns Regulatory Authority's decision, mandates refund with interest instead of possession based on temporary occupation certificate.
In a significant decision, the Uttar Pradesh Real Estate Appellate Tribunal, Lucknow Bench, has ruled in favor of an allottee seeking a refund in a delayed real estate project. The Tribunal, comprising Mr. Justice Suneet Kumar and Mr. Rameshwar Singh, delivered the judgment on November 24, 2025, in the case of Vijendra Singh Raghav v. Strategic Developers Private Limited.
The Tribunal was tasked with reviewing an appeal filed by Vijendra Singh Raghav, who challenged the order of the U.P. Real Estate Regulatory Authority. The Regulatory Authority had previously directed the possession of a unit based on a temporary occupation certificate, despite Raghav's plea for a refund due to project delays.
The central issues in the appeal were whether the Regulatory Authority erred by granting relief beyond the pleadings and if possession could be offered based on a temporary occupation certificate. The Tribunal emphasized that relief granted beyond what was sought in pleadings is unsustainable. It ruled that the Regulatory Authority's decision to offer possession, rather than a refund, was invalid.
The Tribunal referred to several precedents from the Supreme Court, emphasizing that relief not claimed cannot be granted, and courts must adhere to the pleadings and prayers presented. It highlighted the unconditional right of an allottee to withdraw from a delayed project under Section 18 of the Real Estate (Regulation and Development) Act, 2016.
Further, the Tribunal clarified the distinction between a temporary occupation certificate and an occupancy certificate, noting that the former does not equate to lawful possession under the Act. The Tribunal observed that the temporary occupation was granted before the project's completion and was not a valid basis for possession.
As a result, the Tribunal set aside the Regulatory Authority's order and directed Strategic Developers Private Limited to refund the amount of Rs. 20,96,239 along with interest at MCLR+1% to Raghav within 45 days.
The judgment underscores the importance of adherence to legal principles in real estate disputes, particularly concerning the rights of allottees in delayed projects.
Bottom Line:
Real Estate (Regulation and Development) Act, 2016 - Relief granted beyond pleadings and prayer by the Regulatory Authority is unsustainable - Refund of deposit claimed by allottee in delayed project cannot be substituted with possession based on temporary occupation certificate.
Statutory provision(s): Real Estate (Regulation and Development) Act, 2016 Sections 18, 2(q), 2(zf), 11; Greater Noida Building Regulations
