Section 8 of RERA Act, 2016: Authority's Duties After Lapse or Revocation of Registration

Section 8 of the Real Estate (Regulation and Development) Act, 2016 (RERA) deals with the steps that the Real Estate Regulatory Authority may take when a project's registration lapses or is revoked. Its purpose is to facilitate completion of the remaining development works while protecting the interests of allottees.

Meaning and scope of Section 8

A lapse of registration generally refers to the expiry of the period for which registration was granted under Section 5, where no effective extension continues it under Section 6. Revocation is the withdrawal of registration by the Authority under Section 7 on the statutory grounds and after following the required procedure.

Section 8: Obligation of Authority consequent upon lapse of or on revocation of registration

Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority:
Provided that no direction, decision or order of the Authority under this section shall take effect until the expiry of the period of appeal provided under the provisions of this Act:
Provided further that in case of revocation of registration of a project under this Act, the association of allottees shall have the first right of refusal for carrying out of the remaining development works.

How the Authority may arrange completion

After registration lapses or is revoked, the Authority may consult the appropriate Government and decide how the unfinished development should proceed. Section 8 expressly contemplates completion through a competent authority, the association of allottees, or another arrangement determined by the Authority. The provision gives the Authority discretion to choose a suitable course of action; it does not automatically transfer the project to the allottees or require a particular agency to complete it in every case.

The term allottee is defined in Section 2(d) and generally includes a person to whom a plot, apartment or building has been allotted, sold or otherwise transferred by the promoter, subject to the statutory exclusions. A competent authority is defined in Section 2(p), while the appropriate Government is defined in Section 2(g). Their statutory roles depend on the project and jurisdiction.

Appeal period and when directions take effect

The first proviso to Section 8 expressly states that no direction, decision or order under that section takes effect until the appeal period under RERA has expired. Section 44 generally provides a period of 60 days for an appeal to the Real Estate Appellate Tribunal from receipt of a copy of the relevant direction, decision or order, subject to its provision permitting delayed appeals on sufficient cause. The precise procedural position, including any appellate or court order, must be checked in the particular case. The statutory waiting period should not be confused with an automatic stay throughout any appeal that may subsequently be filed.

First right of refusal of the association of allottees

The second proviso confers on the association of allottees the first right of refusal to undertake the remaining development works when registration has been revoked. This priority is specifically attached to revocation; the proviso does not expressly extend that first right to a case of mere lapse. A first right of refusal gives the association priority to consider taking up completion, but does not by itself vest title, dispense with statutory approvals, or guarantee funding or possession.

Section 7(4) sets out consequences of revocation, including listing the promoter as a defaulter, facilitating the remaining works under Section 8, and directions concerning the project's separate bank account. Section 18 addresses specified rights to refund, interest and compensation where the promoter fails to complete or give possession in accordance with the Act. Section 19 deals with the rights and duties of allottees. The remedy and procedure depend on the facts and the applicable State or Union Territory rules and Authority orders.

Practical steps for allottees

Check the project's registration status, approved completion date, extension history and orders on the relevant State or Union Territory RERA portal.
Obtain the lapse or revocation order and determine whether the statutory appeal period has expired or any relevant appellate direction applies.
Coordinate through the association of allottees to examine unfinished works, approvals, estimated cost and possible completion arrangements.
Where registration was revoked, consider the association's first right of refusal and communicate its position to the Authority in the manner directed.
Assess individual claims for possession, refund, interest or compensation separately under the applicable provisions.

Official legal resources

Read the Real Estate (Regulation and Development) Act, 2016 on India Code and consult the Ministry of Housing and Urban Affairs RERA information portal. Project-specific procedures, forms, orders and implementation requirements should be verified with the relevant State or Union Territory Real Estate Regulatory Authority.