It manifests, legislative intent is to make The Real Estate (Regulation and Development) Act, 2016 applicable not only to projects which were yet to commence after RERA became operational but also to bring under its fold ongoing projects. The distinction between retrospective and retroactive has been explained in Jay Mahakali Rolling Mills v. Union of India, (2007) 12 SCC 198. Also see, Shanti Conductors Private Limited v. Assam State Electricity Board, (2019) 19 SCC 529 and Vineeta Sharma v. Rakesh Sharma, (2020) 9 SCC 1.
Retroactive statute means a statute, which creates a new obligation on transactions or considerations already passed or destroys or impairs vested rights.
The application of RERA is retroactive in character and it can safely be observed, projects already completed or to which completion certificate has been granted are not under its fold and therefore, vested or accrued rights, if any, in no manner are affected. However, it will apply after getting ongoing projects and future projects registered under Section 3 to prospectively follow mandate of RERA.
– Hon’ble Justice Ajay Rastogi, M/s. Newtech Promoters & Developers Pvt. Ltd. v. State of UP, [Civil Appeal Nos. 6745-6749 of 2021].
Also see, Securities and Exchange Board of India v. Rajkumar Nagpal, [Civil Appeal No. 5247 of 2022] decided on 30.08.2022 and Bharat Sanchar Nigam Ltd. v. M/s. Tata Communications, [Civil Appeal Nos. 1699-1723 of 2015] decided on 22.09.2022.