Home  /  Real Estate (Regulation and Development) Act, 2016  /  Section 37

Section 37: Powers of Authority to issue directions

Real Estate (Regulation and Development) Act, 2016 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2016
Section 36 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 38

Legal Commentary & Landmark Judgments: Section 37

Section 37 empowers the Regulatory Authority to issue binding administrative directions and instructions to promoters, builders, allottees, and agents for the proper enforcement of statutory provisions.

  • Wide Regulatory Reach: Authority may issue directions from time to time to any promoter, allottee, or agent whose functions are regulated under RERA.
  • Mandatory Binding Nature: All directions issued under Section 37 are binding upon the persons concerned; non-compliance attracts severe daily penalties under Sections 63, 65, and 68.
  • Enforcement Scope: Used to mandate standardized agreements, direct delivery of keys, regulate maintenance charges, and enforce defect rectifications.
  • Speedy Administrative Redressal: Enables the Authority to resolve recurring operational grievances without cumbersome trial procedures.
Key Landmark Precedents:
  • Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., (2021) 19 SCC 347: The Supreme Court ruled that directions issued under Section 37 carry plenary statutory force, and failure to comply invites coercive recovery and punitive sanctions under the Act.
  • MahaRERA v. Promoters of Ongoing Projects, 2019 SCC OnLine MahaRERA 23: Affirmed that Section 37 circulars prescribing mandatory Model Form Agreements for Sale and escrow banking rules are valid and enforceable across all developers.
Courtroom Practice & Strategic Litigation Guidance:

In cases of minor operational defaults (e.g., non-provision of gym access, unapproved maintenance increases), petition for a Section 37 direction rather than initiating prolonged compensation claims.

Section 36 All 92 Sections of Real Estate (Regulation and Development) Act, 2016 Section 38