Uppal Housing moves High Court to know if Landowner can be called Promoter

Delhi-based real estate company Uppal Housing has approached the Delhi HC to ascertain if the ‘landowner’ can be treated as promoter of a project being developed by another company and be fined for delay.

Uppal Housing is the landowner of Winter Hills, a residential project of builder Umang Realtech at Dwarka Mor in Delhi. Now, the Appellate Tribunal of Delhi Real Estate Regulatory Authority (RERA) has imposed liability of a promoter on Uppal Housing after some homebuyers filed a complaint on delay in delivery.

Uppal Housing has filed an appeal under Section 58 of the Real Estate (Regulation and Development) Act, 2016 in the HC, challenging the move.

Manoj K Singh, legal counsel for Uppal Housing, said the court has issued notice to Delhi Real Estate Regulatory Authority (RERA) and is of the opinion that the issue requires to be determined at length as it is for the first time it has been raised since the introduction of the Act.

“What needs to be determined by the HC is whether Uppal Housing, a landowner, can be brought in the category of promoters with respect to imposing liability of giving compensation and refund to the allottees and development of the project,” said Singh of Singh & Associates law firm. “It is important to note that Real Estate Regulatory Authority (RERA) has categorically not defined landowner.”

Uppal Housing leased the land where the residential project is being executed by Delhi Metro Rail Corporation (DMRC) in 2006.

It then entered into an agreement with Umang Realtech for development of a residential complex on the land and sale of housing units. Uppal Housing was supposed to get share in the revenue.

The company has told the regulator that it cann't be made party in the case since sale is being done by Umang Realtech.

Vijay Madan, chairperson of Delhi Real Estate Regulatory Authority (RERA), said, “The case has been decided on the basis of the argument made by the complainant and facts presented to us. We have treated them as co-promoter.” Uppal Housing has 45% shareholding in Umang Realtech.

In different orders, Real Estate Regulatory Authority (RERA) had ordered compensation to homebuyers in this project and refund of amount paid to the builder.

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