Rajasthan Real Estate Case: Amicable Settlement and Its Consequences Explained

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Rajasthan Real Estate Case: Amicable Settlement and Its Consequences Explained
Rajasthan Real Estate Case: Amicable Settlement and Its Consequences Explained

In the realm of real estate disputes in Rajasthan, the Rajasthan Real Estate Regulatory Authority (RERA) plays a crucial role in ensuring fair resolutions. One such intriguing case that came before RERA was Complaint No. RAJ-RERA-C-2021-4552, involving two parties: Indra Arora, the Complainant, and Aadarsh Affordable Housing Pvt. Ltd., the Respondent. The case centers around an amicable settlement that was initially reached between the parties but took an unexpected turn due to a dishonored cheque.

Understanding the Case's Background  

To comprehend the intricacies of the case, we need to trace back its origins. The dispute stemmed from issues related to a real estate project, leading Indra Arora to file a formal complaint with RERA. Acting as a mediator, RERA's Conciliation Forum played a crucial role in facilitating discussions between the Complainant and the Respondent, ultimately leading to an amicable settlement on 09.03.2022.

Amicable settlements are of paramount importance in the real estate industry as they offer a quicker and less adversarial route to resolving disputes. By reaching an agreement that satisfied both parties, it seemed like the case had come to a close.

The Court Order and Its Implications

On 25.04.2023, Shri Shailendra Agarwal, the Hon'ble Member, passed a significant order in the case. Notably, the Respondent was absent during the proceedings, indicating their lack of concern and engagement with the matter. This raised concerns about their commitment to resolving the dispute.

The Court's attention was drawn to a dishonored cheque, which the Respondent had issued as part of the amicable settlement. The cheque was returned due to insufficient funds in the Respondent's account, raising questions about their financial responsibility.

Considering these factors, the Court decided to invoke Section 40 of the Real Estate (Regulation and Development) Act, 2016. This section empowers RERA to take action against non-compliance. Consequently, the Court directed the Registrar of the Authority to attach the unsold part of the project and the Respondent's bank account.

An auction process was set in motion to recover the ordered amount owed to the Complainant. If any surplus remained after fulfilling the Complainant's dues, it would be returned to the Respondent. This measure was taken to enforce accountability and ensure the fulfillment of the settlement.

Powers of RERA Under Section 40 of the Act  

Section 40 of the Real Estate (Regulation and Development) Act, 2016, empowers RERA to take necessary action against promoters and developers for non-compliance with its orders or decisions. In cases where parties fail to fulfill their obligations, RERA has the authority to attach unsold portions of real estate projects and even seize bank accounts of the non-compliant party.

The attachment and auction process serve as a mechanism to enforce the orders issued by RERA and ensure that the aggrieved party receives the compensation they are entitled to. This provision acts as a deterrent against any negligent behavior or lack of seriousness on the part of developers and promoters.

Consequences of Non-Compliance  

The non-compliance displayed by the Respondent in this case has serious consequences. Dishonored cheques can lead to legal repercussions and damage the credibility of the defaulting party. In the real estate industry, where trust and financial integrity are paramount, such instances can tarnish a developer's reputation.

Furthermore, non-compliance can result in prolonged legal battles, costing both parties time and resources. Developers and promoters risk facing penalties, forfeiture of properties, and even potential project delays due to legal entanglements.

In this case, the Respondent's failure to meet the terms of the amicable settlement not only prolonged the dispute but also compelled the Court to take severe measures, leading to the attachment and auction of the unsold portion of the project and their bank account.

Adhering to legal obligations is paramount in the real estate industry. Compliance with RERA's orders and regulations ensures transparency and protects the rights of homebuyers and investors. It fosters a sense of trust between the parties involved, promoting a healthy real estate ecosystem.

RERA's role as a regulatory authority is to safeguard the interests of all stakeholders, ensuring that developers and promoters adhere to ethical practices and fulfill their commitments. By promoting fair practices and ensuring timely delivery of projects, RERA contributes to a thriving real estate market.

Amicable settlements offer an effective and expedient resolution to disputes, sparing parties from prolonged litigation processes. They provide a more cost-effective and mutually beneficial route to resolving conflicts, allowing both parties to reach a compromise that suits their interests.


The Rajasthan Real Estate Case, Complaint No. RAJ-RERA-C-2021-4552, serves as a pertinent example of the significance of amicable settlements and the consequences of non-compliance in the real estate industry. The Court's order under Section 40 of the Act reinforces the importance of adhering to legal obligations and fulfilling amicable settlements.

Developers and promoters must understand the gravity of their commitments and the repercussions of negligence in meeting them. Adhering to RERA's regulations and orders not only ensures compliance with the law but also fosters a positive reputation within the real estate market.

The case highlights the essential role played by RERA in resolving disputes and maintaining transparency in the real estate sector. By emphasizing amicable settlements and legal compliance, RERA continues to safeguard the interests of homebuyers and investors, contributing to the growth and stability of the real estate industry in Rajasthan.

Note: The information provided in this article about Rajasthan Real Estate Regulatory Authority (RRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the Complaint No. RAJ-RERA-C-2021-4552 before the Rajasthan Real Estate Regulatory Authority

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