Raja K S Tanwar (SME) 25 May 2024

Rera case - addition of respondent / attach director property

Q1) While original complaint, Director was not made party (Only firm was made party). Can we add Director as additional respondent in RERA or REAT. Order and execution order has been given by RERA against Firm.

Q2) RERA gave orders to attach property of promoter/firm (which is in the name of project). But need to know can property of Director also be attached. Reasons -

1) As he is alone director of the firm from day1 and it has been now 14 yrs.

2) He is declared as PO in 5 - Cr. Cases registered against him, for the same project.

3) He sold Institutional Land to buyers on pretext of Residential.

If yes, need reference of such past judgements, where Director has been held responsible and attached his/her property

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2 Replies

T. Kalaiselvan, Advocate (Advocate) 25 May 2024

If the director is the promoter as per the RERA observation and if director was not impleded as a party to the proceedings, then you cannot go beyond the orders of the RERA, even if you prefer an appeal you cannot implead the director as a party in the appeal before RERA appellate tribunal.

You may have to file a petition again before RERA to reopen for the sake of impleading the director of the firm as necessary party since he is the same person who has been described as promoter hence to amend the judgment to pass the rectified judgment for attaching the property of the director.

Dr. J C Vashista (Advocate ) 26 May 2024

Ans1. When the case was pending before RERA Director(s) / Promotor(s) could have been impleaded as proper and necessary party. However, they (Director(s) / Promotor(s)) cannot be impleaded in REAT in appeal.

Ans 2 Promotor(s) / Director(s) and firm are two different entities, where assets of firm can only be attached in execution of order / decree passed by RERA.