Revocation of Registration under Real Estate (Regulation & Development) Act, 2016


Status as on- 14/01/2022 

The Real Estate (Regulation and Development) Act, 2016 has established quasi-judicial courts to provide legal assistance to both the home buyers and developers in the event of disputes arising out of real estate transactions. It has strict compliance rules that must be met and followed by all developers who want to develop a real estate project.

Once a developer gets the Real Estate Project registered under this Act. Then the developer is bound to comply with the provisions of this act. And Non – Compliance of this Act can lead to unfavorable consequences to the extent of Revocation of Registration by the competent authorities under Section 7 of The Real Estate (Regulation & Development) Act, 2016. Such revocation can be made on the following grounds –

  1. The promoter defaults in performing some act required by this Act or the rules or regulations made under this Act.
  2. The promoter violates any terms or conditions of the approval given by the competent authority.
  3. The promoter is involved in any kind of unfair practice or irregularities like adopting some unfair means to promote the sale or development of the real estate project. Any deceptive practice used to carry forward the sale or development of the real estate project may be a ground for revocation of the registration for such a project including-
  • False representation that the services are of a particular standard or grade;
  • False representation that the promoter has approval or affiliation which such promoter does not have;
  • Publication of such advertisement or prospectus in any newspaper or otherwise which is not intended to be offered;
  • The Promoter indulges in any fraudulent practices.

Such action for revocation can be taken (on Complaint or Suo Moto by the Competent Authorities) wherein the competent authorities are of the view that the promoter has violated the grounds of Section 7. However, prior to revocation of such registration, 30 days’ notice must be given to the promoter of the real estate project to justify the grounds as to why such project should not be revoked. And if the concerned authorities are satisfied with the reply filed by the promoter then such authority may not revoke such registration, rather, they may impose further terms and conditions (if necessary) on the promoter in the interest of the allottees.

In case the competent authorities are not satisfied with the reply filed by the promoters, then the competent authority may revoke the license of the promoter and following consequences would be faced by the promoters –

  • The promoter would be debarred from using the official website of the project & information regarding the default would be circulated to the other Real Estate Regulatory Authority of the other States and Union Territories about such revocation of registration;
  • The project bank account shall be freezed;
  • Any other order in the interest of allottees may be passed.


It is the duty of every developer who has registered any project under RERA to comply with the provisions of Real Estate (Regulation and Development) Act, 2016 and in case of any default by means of; default in performing any action required by the Act, breach of terms and conditions of the approved project, or by any other unfair practice on behalf of the promoter. The Competent Authorities hold the power to revocate the registration of such promoters along with the publication of the name of such promoter in the defaulter’s list.


Disclaimer: The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at


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