On Jun 10, 2025
DDA has challenged Section 3 of the RERA Act, which mandates all real estate developers, including government bodies, to register projects before offering them for sale. DDA asserts that it already operates under comprehensive oversight mechanisms, such as parliamentary audits and government supervision, and its functioning is governed by rules under the Nazul Rules, 1981 and the DDA (Management and Disposal of Housing Estates) Regulations, 1968.
Background of the case
Previously, DDA had filed an appeal before the Real Estate Appellate Tribunal challenging the December 20, 2021 order passed by RERA directing it to register all projects under the DDA Housing Scheme 2019 and 2021.
The Real Estate Appellate Tribunal had on September 30, 2024 upheld the RERA’s decision noting, “there is a clear stand taken by the Government of India that the provisions of the Act are applicable to the DDA”.
On May 2025, a bench headed by Justice Sachin Dutta issued notices to both Delhi RERA and the Ministry of Housing and Urban Affairs, seeking responses to DDA’s petition. The DDA, which functions under the Delhi Development Act, 1957, contends that it is not a commercial real estate promoter like private developers but a statutory body established by Parliament with a specific public mandate.
Appearing for DDA, Senior Advocate Ramesh Singh and Advocate Vrinda Kapoor Dev argued that the RERA authority had overstepped its jurisdiction. They stated that:
- DDA is a creation of Parliament and an instrument of state policy, not a private developer.
- It has been tasked with planning and implementing the planned development of Delhi, not commercial profit-making.
- RERA’s insistence on DDA submitting documents such as approvals and commencement certificates is irrelevant because DDA itself is the competent authority responsible for issuing such documents.
They further pointed out that the Real Estate Act’s procedural requirements—including details on promoter credentials, project delays, and legal disputes—are meant for private builders and not for a statutory agency like DDA
Delhi RERA has maintained a firm stance. It argues that any entity involved in real estate development, regardless of its status as a public or private body, is legally bound to register under RERA if it intends to sell or market real estate projects. The authority insists it has statutory powers to regulate all real estate activity and has even initiated action against DDA recently, instructing it to register its luxury housing project in Dwarka.
RERA’s legal team maintains that registration ensures transparency, accountability, and protection of homebuyers, even when government bodies are involved.
Section 3 of RERA mandates registration of real estate project by the promoter before any advertisement, marketing, booking, selling or offering for sale, or inviting persons to purchase in any manner. Further, Section 59 of RERA provides for penalty upon promoter in case of non-registration of the real estate project
Section 3(1) in Real Estate (Regulation And Development) Act, 2016
(1)No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act:
Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued,
the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act:
Provided further that if the Authority thinks necessary, in the interest of allottees, for projects which are developed beyond the planning area but with the requisite permission of the local authority, it may, by order, direct the promoter of such project to register with the Authority, and the provisions of this Act or the rules and regulations made thereunder, shall apply to such projects from that stage of registration.
