RERA in Dharamshala, Appeals in Chandigarh: Time for Himachal’s own Tribunal?

Six years after Himachal Pradesh opted to route appeals arising from real estate disputes to the Haryana Real Estate Appellate Tribunal (HREAT) at Chandigarh, legal experts and stakeholders are questioning whether the arrangement has outlived its utility and whether the state should establish its own Real Estate Appellate Tribunal (REAT).

The debate has resurfaced amid growing real estate activity, increasing regulatory complexities and concerns over delays in adjudicating appeals arising from orders of the Himachal Pradesh Real Estate Regulatory Authority (HP-RERA), headquartered in Dharamshala.

Documents accessed reveal that in 2020 the Haryana Government accepted a request from Himachal Pradesh to allow HREAT, to hear appeals against orders passed by HP-RERA. At the time, the arrangement was viewed as a practical and cost-effective solution because the volume of real estate disputes in Himachal Pradesh was relatively limited.

A communication dated May 15, 2020, issued by Haryana’s Principal Secretary (Housing), informed the Himachal Pradesh Government that Haryana had agreed to the proposal and had also reduced Himachal Pradesh’s financial contribution towards the tribunal from 20 per cent to 10 per cent of HREAT’s annual budget. The amount is liable to be reimbursed by the state government on a quarterly basis.

However, six years later, questions are being raised about the effectiveness of the mechanism. Sources familiar with the matter claim that though the State has not made any payment to Haryana till date but, it maybe liable, to spend nearly Rs 40 lakh annually towards the arrangement. They further allege that despite the passage of several years, not a single appeal originating from Himachal Pradesh has reached final adjudication before the tribunal. While the exact pendency position could not be independently verified, the claim has intensified calls for a review of the existing system.

Under the present framework, any person aggrieved by an order of HP-RERA must file an appeal before the appellate tribunal located in Chandigarh. Lawyers and property sector observers argue that this imposes additional costs and logistical challenges on homebuyers, developers and other litigants from Himachal Pradesh.

Legal practitioners point out that if a dispute remains unresolved after the appellate stage or raises substantial questions of law, the matter may eventually reach the Himachal Pradesh High Court in Shimla. As a result, litigants often find themselves pursuing legal remedies across two places, increasing both time and expense.