RERA Compensation: Supreme Court Says Promoter Must Deposit Entire Amount Before Appeal Is Heard

Promoter Must Deposit Full RERA Award

The Supreme Court has ruled that a promoter contesting a Real Estate Regulatory Authority order to pay compensation to a homebuyer must first deposit the entire awarded sum, including interest and compensation, before the appeal can be taken up. A Bench of Justices Prashant Kumar Mishra and Augustine George Masih held that this requirement flows from the proviso to Section 43(5) of the Chhattisgarh Real Estate (Regulation and Development) Act, 2016, and is mandatory. The appellate tribunal, the Court said, cannot grant an exemption from depositing the full amount where the appeal challenges a compensation order.

The dispute involved M/s Parthivi Construction Pvt Ltd. The Chhattisgarh RERA in Raipur had, on June 27, 2025, allowed a complaint by Bhuneshwar Prasad Verma and directed the promoter to pay Rs 1,06,79,900. The promoter appealed before the appellate tribunal under Section 44 and sought relief from depositing 30 per cent of the amount. On August 20, 2025, the tribunal directed deposit of the entire sum. When the promoter did not comply, the appeal was dismissed on September 26, 2025. The Chhattisgarh High Court declined to interfere under Section 58, leading to the Supreme Court appeal.

Why It Matters For Businesses

The promoter had relied on the 2021 judgment in Newtech Promoters and Developers Private Limited v State of Uttar Pradesh, arguing that the law did not always require deposit of the whole compensation and that the tribunal had discretion to order 30 per cent or a higher proportion. The respondents countered that Newtech itself required full deposit where the order directs compensation to a consumer. The Bench agreed that the point was already settled by that interpretation of the proviso to Section 43(5), and that the total payable amount, including interest and compensation, must be deposited with the appellate tribunal.

The Court anchored its reasoning in the objectives of the 2016 Act, including greate…