Jharkhand Real Estate Appellate Tribunal Orders Refund of Pre-Deposit Penalty

The Jharkhand Real Estate Appellate Tribunal (JREAT) has ruled in favor of a promoter by ordering the refund of 30% of the penalty amount deposited as a pre-condition for entertaining an appeal. The tribunal clarified that this deposit is not punitive but rather a prerequisite for the hearing.

Case Details:

• Appellant: Seem Singh, Proprietor of Shiv Sai Infrastructure
• Tribunal: Jharkhand Real Estate Appellate Tribunal
• Judges: Justice B.B. Mangalmuti (Chairman), Manoranjan Kavi (Member, Judicial)
• Deposit Amount: ₹3 lakhs (30% of ₹10 lakhs penalty)

Tribunal’s Observations:

• The appeal process should not be punitive.
• The 30% deposit made under Section 45(3) of the RERA Act is a pre-condition for the hearing.
• This deposit does not serve as a penalty intended to discourage appeals.

Ruling:

The tribunal directed the refund of ₹3 lakhs deposited by the appellant, emphasizing that the pre-deposit requirement was not punitive in nature. This decision underscores the tribunal’s stance that the appeal mechanism should remain accessible and fair, without undue financial burdens deterring legitimate appeals.

Implications:

• Promoters and other parties can appeal without the fear of punitive pre-deposit requirements.
• Ensures that financial conditions do not deter the exercise of the right to appeal.

For comprehensive market coverage, business news, and real-time stock market updates, visit Kanishk Social Media.

If you like this story, share it with a friend!