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

The Supreme Court has held that under the Chhattisgarh Real Estate (Regulation and Development) Act, 2016, a promoter challenging a Real Estate Regulatory Authority (RERA) order directing payment of compensation to a homebuyer must deposit the entire amount awarded, including interest and compensation, before its appeal can be heard.

A Bench of Justices Prashant Kumar Mishra and Augustine George Masih clarified that this requirement is mandatory under the proviso to Section 43(5) of the Act and that the Chhattisgarh Real Estate Appellate Tribunal cannot exempt a promoter from depositing the full amount when the appeal challenges an order awarding compensation.

Court was hearing an appeal filed by M/s Parthivi Construction Pvt Ltd against a Chhattisgarh High Court judgment upholding the tribunal's decision to reject its request for exemption from the deposit requirement.

The dispute arose after the Chhattisgarh Real Estate Regulatory Authority (RERA), Raipur, on June 27, 2025, allowed a complaint filed by Bhuneshwar Prasad Verma and directed the promoter to pay him Rs 1,06,79,900.

Challenging the order, the promoter approached the appellate tribunal under Section 44 of the Act and sought exemption from depositing 30% of the awarded amount. However, the tribunal, on August 20, 2025, directed it to deposit the entire amount. After the promoter failed to comply, the tribunal dismissed its appeal on September 26, 2025.

The promoter challenged this decision before the Chhattisgarh High Court under Section 58 of the Act, but the high court rejected its plea, prompting the appeal before the Supreme Court.

Before the Supreme Court, the promoter relied on Court's 2021 judgment in Newtech Promoters and Developers Private Limited v State of Uttar Pradesh and argued that the law did not make deposit of the entire compensation amount mandatory in every case.

The promoter contended that the appellate tribunal had discretion to direct deposit of 30% of the awarded amount, or a higher percentage, including the entire amount where appropriate. According to the promoter, the tribunal had failed to exercise this discretion and had instead straightaway directed deposit of 100% of the amount.

The respondents, however, argued that the Newtech Promoters judgment itself made it clear that where the RERA order directs payment of compensation to a consumer, the promoter must deposit the entire amount before its appeal can be heard.

The Bench held that the issue was no longer open for consideration, as the Court had already interpreted the proviso to Section 43(5) in Newtech Promoters case.

It said that where an appeal is against an order directing payment of compensation, the promoter is required to deposit with the appellate tribunal the total amount payable to the allottee, including the interest and compensation imposed on the promoter.

Court also referred to the object of the 2016 Act, which includes greater accountability towards consumers, reducing fraud and delays, balancing the interests of consumers and promoters, ensuring transparency in contractual conditions and providing a fast-track mechanism for dispute resolution.

"The basic object for the enactment of the Act, 2016, is the protection of the interests of the consumers and to ensure greater accountability and liability upon the promoter," the Bench said.

It added that the requirement to deposit the total compensation and interest was intended to further this object when a promoter challenges an order awarding such compensation.

The Bench therefore held that the appellate tribunal was justified in rejecting the promoter's request for exemption from the deposit requirement.

It dismissed the appeal.

Case Title: M/s Parthivi Construction Pvt Ltd & Ors Vs Shri Bhuneshwar Prasad Verma & Anr

Bench: Justices Prashant Kumar Mishra and Augustine George Masih

Date of Judgment: September 22, 2026