Navigating RERA Jurisdiction in Bihar: Title Disputes and Adjudication Challenges in Real Estate and SCO (Shop-cum-Office) Projects
This article, authored by Mr. Harsh Kaushal, Advocate, Hon’ble High Court, Patna, graduate of National Law University, and Founder of Legal Pinnacle Law Firm, Patna having 20 years’ experience (legalpinnaclellp@gmail.com; +91-6202579262).
SYNOPSIS
This article critically examines the jurisdictional boundaries of the Real Estate Regulatory Authority (RERA) in Bihar, particularly in the context of title disputes arising from urban redevelopment and Shop-cum-Office (SCO) projects. While RERA offers robust consumer protection and regulatory oversight, its statutory mandate excludes adjudication of ownership and title claims, which remain within the exclusive domain of civil courts.
Drawing from landmark judgments of the Patna High Court and statutory interpretation of Sections 31, 71, and 79 of the RERA Act, the article delineates the procedural bifurcation between regulatory violations and title litigation. It highlights common legal pitfalls faced by developers and buyers in Bihar, including unverified mutation records, ancestral property claims, and misaligned RERA registrations.
The article further proposes strategic legal remedies, including mandatory title audits, integrated adjudication reforms, and enhanced legal literacy among stakeholders. Through case studies and practical insights, it aims to guide developers, investors, and legal professionals in navigating the complex interplay between RERA compliance and civil litigation in Bihar’s evolving real estate ecosystem.
Introduction
The Real Estate (Regulation and Development) Act, 2016 (RERA) represents a paradigm shift in India’s real estate regulatory regime, promising enhanced transparency, accountability, and consumer protection. Bihar’s adoption of RERA, supplemented by the Bihar Real Estate (Regulation and Development) Rules, 2017, and the Bihar RERA (General) Regulations, 2024, introduces a dynamic interplay between statutory frameworks, practical enforcement, and the unique challenges posed by title disputes in real estate and mixed-use Shop-cum-Office (SCO) developments. For stakeholders in Bihar’s real estate sector including homebuyers, developers, and investors the question of jurisdiction, especially where land title is in dispute, remains complex, nuanced, and critical for safeguarding legal interests.
We focus sharply on the adjudication of title disputes and the intricate resolution challenges within real estate projects, including SCOs. we provide clarity and strategic guidance for potential clients and legal professionals navigating the evolving landscape of real estate law in Bihar.
I. Statutory Framework of RERA in Bihar
The Legislative Backbone
RERA, enacted in 2016, aims to regulate and promote the real estate sector, ensuring the sale of plots, apartments, and buildings in an efficient and transparent manner. The Act provides for the establishment of the Real Estate Regulatory Authority in each state. In Bihar, the regulatory architecture is complemented by the Bihar Real Estate (Regulation and Development) Rules, 2017, which set compliance, procedural, and disclosure requirements for all stakeholders in the sector24.
Central to any real estate transaction is the validity of title. Section 4 of the RERA Act mandates that every promoter, at the time of project registration, must provide:
- A declaration by affidavit as to the promoter’s legal title to the land,
- The project’s status concerning encumbrances, and
- Details of consent in cases of joint development arrangements.
Section 16 further requires insurance of title and its transfer to allottees upon completion. Any defect in title is actionable under Section 18, which provides for compensation to aggrieved allottees and explicitly bars limitation defences for claims founded on defective title.
Registration and Compliance in Bihar
Compliance with RERA is mandatory for a broad class of development activity:
- Every real estate project (including SCO or commercial projects) exceeding 500 square meters or more than eight apartments must be registered with RERA Bihar before any marketing, booking, or sale3.
- The promoter (who may also include landowners under certain circumstances) is obligated to furnish an authenticated title deed and a ten-year chain of title, certified by a senior advocate, as part of the registration process1.
Definition of “Apartment” and Applicability to SCO Projects: Section 2(e) and Section 2(zn) of the Act clarify that “apartment” covers all units residential, commercial, offices, shops including the increasingly common SCO (Shop-cum-Office) projects. This ensures that mixed-use and non-residential developments come firmly within RERA’s regulatory ambit.
II. RERA, Civil Courts, and Revenue Authorities: Jurisdictional Interplay
Exclusive Judicial Domain: Section 79
Section 79 of the RERA Act expressly ousts the jurisdiction of civil courts in matters RERA or its authorities are empowered to determine. The maxim “Expressio unius est exclusio alterius” embodies this by explicitly vesting adjudicatory functions in RERA, the statute bars civil court involvement in routine matters falling under its purview.
However, the bar is not absolute. Jurisprudence recognizes certain categories especially complex and genuine disputes about land title that transcend the Authority’s statutory mandate.
Case Insight: In Saurav Kumar Sharma vs The State of Bihar911，the Hon’ble Patna High Court confronted RERA’s directive to transfer possession and demolish a hotel despite the builder conceding the title rested with the petitioner. The Court, referencing Sections 44 and 58 of RERA, underscored the well-settled rule that where a statute provides a right of appeal, the High Court’s writ jurisdiction under Article 226 is subject to self-imposed restraint and not an absolute bar (see Paragraphs 10–17). Yet, critically, it acknowledged that RERA’s jurisdiction is circumscribed when facing bona fide title disputes. Quoting M.P. State Agro Industries Development Corpn. Ltd. v. Jahan Khan, (2007) 10 SCC 88, the Hon’ble High Court noted: “In an appropriate case, in spite of the availability of an alternative remedy, a writ court may still exercise its discretionary jurisdiction of judicial review… where the orders or proceedings are wholly without jurisdiction…” (Para 11).
Conclusion: Civil courts and, in extraordinary circumstances, High Courts retain jurisdiction to adjudicate title where the question is complex, unsettled, and not incidental to RERA’s processes.
The Bihar Land Disputes Resolution Act, 2009: Revenue’s Continuing Role
The Bihar Land Disputes Resolution Act, 2009 (BLDRA) is specific to boundary, title, and record of rights disputes in the state. Section 4 empowers the Competent Authority, typically the Deputy Collector Land Reforms, to resolve questions such as unauthorized dispossession, partition, boundary disputes, correction of survey entries, and most relevantly, declarations of right. Importantly, Section 4(5) mandates that if a “complex question of title” is involved, the revenue authority must close the proceedings and direct the parties to seek recourse before a competent civil court1315.
Table: Comparison of RERA, Revenue, and Civil Jurisdiction
| Matter | RERA | Revenue Authority (BLDRA) | Civil Courts |
| Project registration | Exclusive | N.A. | N.A. |
| Consumer complaints | Exclusive (except for title) | N.A. | No jurisdiction if RERA applies |
| Title authenticity | Incidental/limited (not final) | Yes (subject to S.4(5) exception) | Final authority on complex title |
| Partition/Boundary | N.A. | Yes | Appellate/revisional in exception |
| Compensation for defective title | Yes (S.18), but does not adjudicate root of title | N.A. | Yes |
Analysis: RERA addresses title as an incidental question (e.g., to check eligibility for compensation), but does not decide title per se. When a dispute concerns the source or foundation of title such as alleged fraud, adverse possession, or competing ownership claims RERA must decline and refer the issue to the civil judiciary.
III. Title Disputes under RERA: Statutory Boundaries and Exceptions
Scope of Title Disputes in RERA Adjudication
The statutory scheme of RERA, particularly Sections 4(2)(l)(B), 11(4)(a), 16, and 18(2), establishes the following:
- Promoter’s Burden: The promoter must declare legal title to the land, provide chain of title documents, and disclose any encumbrances before project registration.
- Allottee’s Remedy: Section 18(2) allows allottees to claim compensation for losses caused by defective title without any statutory limitation bar the principle of ubi jus ibi remedium (where there is a right, there is a remedy).
- Incidental Inquiry: The Authority or Adjudicating Officer can inspect documents and make a prima facie (summary) decision on title for the limited purpose of project registration or compensation claims. They cannot, however, resolve competing ownership claims or suit-level disputes.
Legal Maxims and Principles
“Nemo dat quod non habet” – No One Can Transfer Better Title Than He Possesses
The bedrock of all title inquiry is the legal maxim “nemo dat quod non habet”17. Indian jurisprudence, from Sri Krishna Coconut Co. v. The East Godavari Coconut and Tobacco Market Committee (AIR 1967 SC 973) to Umadevi Nambiar v. Thamarasseri Roman Catholic Diocese (2022) 7 SCC 90, reiterates: a transferor cannot confer better title than he himself possesses, except in cases of law-sanctioned exceptions (e.g., Section 41 of the Transfer of Property Act for ostensible ownership).
This is particularly germane in the context of real estate projects, where the land’s historical title carries through to every allottee. RERA, therefore, focuses on ensuring that only those with unencumbered, valid title may act as promoters and that defective titles are actionable.
Incidental vs. Substantive Title Inquiry
As established in Alfa Ventures (P) Ltd. v. State of Kerala (Ker.), RERA can perform only an incidental inquiry into title. Where rival parties present credible, conflicting claims, the matter surpasses RERA’s jurisdiction and must be remitted to civil courts for final determination.
The Hon’ble Patna High Court’s decision in Saurav Kumar Sharma further instructs that if RERA, in the discharge of consumer grievance functions, encounters a significant or complex title question intertwined with the relief sought, it must abstain from final adjudication and pass the baton to the appropriate civil forum11.
IV. Adjudication and Appellate Mechanisms
Primary and Appellate Jurisdiction under RERA
The complaint and appeal structure under RERA is designed for efficient, transparent, and expedited adjudication:
- Filing of Complaints: Section 31 enables any aggrieved person, including associations of allottees or voluntary consumer groups, to file complaints with either the RERA Authority or the Adjudicating Officer (Section 71), depending on the relief sought regulatory, penal, or compensatory20.
- Adjudication: The Authority can pass orders on breach of obligations, direct completion, imposition of penalty, etc. The Adjudicating Officer, typically a judicial officer of District Judge rank, is empowered to award compensation and interest under Sections 12, 14, 18, and 19 of the Act.
- Appellate Tribunal: Section 44 allows aggrieved parties to appeal RERA/Adjudicating Officer orders to the Real Estate Appellate Tribunal within 60 days, extendable for sufficient cause.
- Further Appeal to Hon’ble High Court: Section 58 provides for appeal to the State High Court, but restricts grounds to those specified in Section 100 of the CPC i.e., substantial questions of law ensuring finality and precluding endless litigation chains.
- Extraordinary Remedies: Article 226 jurisdiction remains available for cases of manifest injustice, lack of alternative remedy due to procedural closure, and serious errors of jurisdiction or natural justice, as consolidated in Saurav Kumar Sharma.
Recent Procedural Innovations in Bihar
A noteworthy 2025 reform abolishes the compulsory mediation step, allowing homebuyers and other aggrieved parties to file complaints directly with the RERA bench. This addresses notorious delays while retaining mediation as a voluntary, party-driven process for those amenable. Such procedural agility is vital given the increased complexity in SCO and large-format mixed projects.
Conciliation and ADR: Bihar RERA also operationalizes a Conciliation and Dispute Resolution Cell (CDRC), institutionalizing alternative dispute resolution between developers and allottees. While speedy and cost-effective, conciliation cannot result in binding awards the consent settlement is submitted to the Authority for appropriate orders. The process is confidential, non-adversarial, and governed by principles of natural justice23.
V. Power, Procedures, and Penalties Under RERA
Powers Vested in Bihar RERA
The Authority, under Sections 34–38 and reflected in State Regulations, holds powers equivalent to those of a civil court for the purpose of:
- Discovery and production of documents,
- Summoning and enforcing attendance of persons,
- Examination of witnesses,
- Commissions for inquiry,
- Imposition of penalties and recovery as land revenue.
The enforcement of RERA orders including direction for completion, refunds, or compensation can be carried out as a decree of a civil court, with RERA officers empowered as certificate officers to recover amounts as arrears of land revenue26.
Penalties for Non-Compliance
Penalties are stringent:
- For non-registration of project (Section 59): Penalty up to 10% of the project cost, and in the case of continued default, imprisonment up to three years and/or further fines.
- For providing false information (Section 60): Penalty up to 5% of the project cost.
- For failing RERA/Tribunal orders (Sections 63-68): Daily penalties, up to an additional 10% of project cost, imprisonment, or both.
- For agents and allottees: Similar graded penalties are applicable28.
Summary Table of Key Offences and Penalties
| Section | Offence | Penalty/Imprisonment |
| 59(1) | Advertising/booking/sale without RERA reg. | Up to 10% of project cost |
| 59(2) | Continued violation post-order | Up to 3 years imprisonment and/or 10% cost |
| 60 | False information on application | Up to 5% of project cost |
| 63 | Default in complying with RERA order | Daily penalty, up to 5% of project cost |
| 64 | Tribunal order non-compliance | Up to 3 years and/or 10% of project cost |
For detailed penalty reference, see [Section 59 of the Act] and [TaxGuru’s compliance matrix]27.
VI. Specific Jurisdictional Challenges in SCO (Shop-cum-Office) Developments
Regulatory Complications in Mixed-Use and SCO Projects
SCO projects, by their nature, blend commercial and office purposes, resulting in diverse categories of allottees and often complex land aggregation patterns. Under RERA Bihar:
- Each component shops, offices, garages must be distinctly disclosed and registered.
- Share distributions, obligations, and marketing rights arising from joint development agreements must be unambiguous; otherwise, RERA may treat landowners as co-promoters with corresponding obligations to allottees6.
Often, title disputes in these projects emanate from:
- Ambiguous or defective aggregator title,
- Overlapping claims among multiple landowners,
- Non-execution or improper registration of development agreements,
- Competing or adverse claims (e.g., legacy rights, unrecorded tenancy, unregularized changes in land classification).
Recent Bihar RERA Proceedings: Dozens of proceedings list disputes where claimants challenge possession, title, or compensation arising from SCO or similar developments. While RERA may resolve straightforward claims (e.g., completion, refunds, or compensation for delayed delivery), complex title disputes especially those questioning foundational project land rights are outside its final jurisdiction.
Hon’ble Patna High Court on Title Disputes in Mixed-Use Projects
The Saurav Kumar Sharma judgment illustrates that RERA’s overreach in ordering demolition or transfer of possession, when the builder/landowner’s title is uncontested or ambiguously contested, can be judicially checked11.
VII. Interaction with Bihar Land Reforms and Revenue Laws
The Bihar Land Reforms Act, 1950, and Blended Jurisdiction
Bihar’s land reforms were legislated to effectuate the abolition of Zamindari and recognize state possession of all interests in land. The relevance of this historical legislation for contemporary real estate is profound:
- Where a project’s land forms part of estate or tenure vested under the 1950 Act, or derivatively from raiyati land governed by the Bihar Tenancy Act, RERA compliance alone is insufficient—the project’s promoter must trace an unbroken, lawful chain of title, considering all revenue tenures, settlements, and entries in record of rights30.
- Civil and revenue courts, and now the Bihar Land Tribunal, retain jurisdiction to resolve disputes relating to these foundational tenures, especially where competing claims arise from state land grants, settlement records, or tenancy rights33.
Complex Title Questions and Mandatory Civil Adjudication
Where disputes involve adverse possession, succession, fraud, forfeiture or state escheat, or competing occupancy claims, RERA is compelled by law (and Supreme Court precedent) to refer the matter onward, adhering to the doctrine of caveat actor—let the actor beware. This is codified by Section 4(5) of the BLDRA and reinforced by case law13.
VIII. Conciliation and ADR under Bihar RERA
The Bihar RERA Conciliation and Dispute Resolution Cell (CDRC)
Seeking to streamline dispute settlement, the 2022 launch of the CDRC allows parties to opt for conciliation before formal litigation. Key features include:
- A mix of neutral facilitators from homebuyer associations, developer groups, and legal experts,
- Confidentiality of proceedings and non-admissibility of statements in later litigation,
- The option to revert to adjudication if conciliation fails,
- Formal ratification of settlement agreements by the Authority, making them enforceable23.
Procedural Advance: Direct Access to RERA Bench
As of August 2025, complainants may bypass compulsory conciliation, directly accessing the RERA bench, enhancing access to justice for aggrieved homebuyers and commercial buyers alike.
IX. Notable Hon’ble Patna High Court Precedent on RERA Title Disputes
Saurav Kumar Sharma v. State of Bihar: Jurisdictional Limits in Focus
A detailed reading of Saurav Kumar Sharma vs State of Bihar, CWJC No. 10543 of 2021, delineates the jurisdictional boundaries of RERA on title disputes:
- The case involved a direction by Bihar RERA for demolition and transfer of possession (hotel constructed on 1 katha) to the builder, despite the builder stating the land belonged to the petitioner.
- The Hon’ble High Court ruled that, although RERA and its Appellate Tribunal provide a comprehensive appellate mechanism (Sections 44, 58), their jurisdiction does not extend to adjudication of complex, substantive title disputes.
- Reiterating the maxim nemo dat quod non habet, the Court emphasized RERA is “not clothed with the jurisdiction to finally decide questions of title in cases involving deep and competing claims” (see Paragraphs 3, 10–17; also referencing M.P. State Agro Industries Development Corpn. Ltd. v. Jahan Khan, 2007 10 SCC 88)911.
Key principle: RERA’s power to inquire into title is purely for regulatory threshold purposes. It cannot, and should not, attempt to “resolve” title disputes that would otherwise require trial-level evidence, witness examination, or detailed legal argumentation.
X. Complex Title Questions: Exception to RERA Jurisdiction
Statutory and Judicial Mandate
The doctrine established by Section 4(5) of the Bihar Land Disputes Resolution Act, 2009 is unequivocal. When a case before the competent authority involves a complex question of title—
- The authority is bound to close the proceeding,
- Parties are directed to seek remedy before the civil court,
- RERA must accordingly refrain from passing orders determining proprietary rights or ordering dispossession.
This exception is further fortified by Supreme Court and High Court jurisprudence, which consistently holds that RERA can only decide “incidental inquiries”—not the title in rem, especially where rival claimants, succession disqualification, or government grants are implicated139.
XI. Case Law: SCO Disputes and RERA’s Jurisdiction
Activities and Disputes in SCO Projects
Bihar RERA case dockets (2024–2025) show a significant volume of litigation involving SCO developments ranging from disputes over allotment, occupancy, delay, and possession, to challenges concerning title authenticity and marketing of unsanctioned units.
Though RERA routinely orders refunds, completion, and compensation, it repeatedly declines to resolve title disputes—remitting such controversies to civil or revenue courts when deeper investigation or third-party verification is necessary. This is echoed in the Bombay High Court’s landmark judgment in Neelkamal Realtors Suburban Pvt. Ltd. v. Union of India, 2017 (para 355 et seq.), where it is held that RERA’s registration and regulation powers are administratively necessary, but in no way usurp the authority of the civil courts to decide title.
XII. Procedural Challenges and Extraordinary Remedies
Challenges in Adjudication
- Multiplicity of Forums: Parties may simultaneously approach RERA for regulatory relief and the civil courts for title, causing procedural overlaps.
- Evidence and Documentation: RERA’s summary procedures, while efficient, do not accommodate exhaustive evidence-taking required in title suits.
- Interim Protection: During the COVID-19 pandemic, non-functioning of appellate tribunals (as in the Saurav Kumar Sharma case) necessitated direct writs for interim injunctions to prevent irreparable injury—demonstrating the need for procedural flexibility911.
Hon’ble Supreme Court and Hon’ble High Court Insights
The Apex Court in Manish Kumar v. Union of India, (2021) emphasized RERA’s role in safeguarding allottees’ financial and legal interests, but warned against overstepping into civil adjudication territory.
Patna High Court’s doctrinal clarification: The self-imposed restraint of writ courts where alternative, efficacious remedies exist is not absolute a Hon’ble High Court may intervene where “the orders or proceedings are wholly without jurisdiction or the vires of an Act is challenged” (see M.P. State Agro Industries Development Corpn. Ltd. v. Jahan Khan)5.
XIII. Legal Maxims and Principles Frequently Applied
- Nemo dat quod non habet: No transferor can give better title than he possesses; applied in title disputes under RERA17.
- Expressio unius est exclusio alterius: Expression of one thing excludes others—bar of civil court jurisdiction over RERA-specific matters.
- Ubi jus ibi remedium: Where there is a right, there is a remedy; under RERA, allottees have right to compensation for defective title.
- Generalia specialibus non derogant: A general law does not override a specific law; RERA’s provisions are not interpreted so as to override express entitlements under land reforms and tenancy statutes. Real Estate Regulatory Authority Bihar
Conclusion: Strategic Takeaways for Clients in Bihar
For allottees, promoters, and developers in the ever-evolving landscape of real estate in Bihar, the following strategic guidelines are paramount:
- Diligent Verification of Title: Always demand a clear, certified chain of title and encumbrance certificate before entering any venture, especially in SCO or joint development scenarios.
- Resort to Appropriate Forum: If your grievance relates to delay, possession, or compensation due to defective title, RERA is your immediate recourse. For disputes involving complex or rival claims to ownership or legacy record irregularities, consult seasoned legal counsel and consider proceeding before competent civil or revenue courts.
- In Dispatching Relief Under RERA, Leverage the Appellate Mechanism: Whether dissatisfied with a regulatory order, or facing procedural delays, utilize the appellate framework moving to the State RERA Tribunal and, if warranted, the High Court.
- Opt for Conciliation When Expedient: Consider voluntary conciliation under the Bihar RERA’s CDRC for amicable, swift, and cost-effective outcomes, especially in straightforward disputes where preserving relationships is key.
- Prepare Robust Documentation: Maintain meticulous records of title, transaction history, and all communications for expeditious, favourable outcomes in either RERA or court-based proceedings.
- Stay Informed About Procedural Innovations: With the recent abolition of compulsory mediation, homebuyers and stakeholders can expect faster access to RERA benches—an attractive option for urgent relief.
As such the person buying any property must have bespoke, strategic approach to both preventative and remedial real estate legal matters. As regulatory frameworks evolve, it is the discerning, informed, and timely assertion of your legal rights that determines the difference between protection and peril in Bihar’s booming property market.
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- Title disputes RERA Patna High Court
- SCO project litigation RERA Bihar
- Legal remedies for real estate in Patna
- RERA jurisdiction land title Bihar
- Shop-cum-office (SCO) dispute resolution Bihar
- Title conflict RERA Bihar lawyer
- Advocate Harsh Kaushal legal advice
- RERA compensation defective title Bihar
- RERA commercial registration dispute Patna
