Builder Appealed Your RERA Order? How the Section 43(5) Pre-Deposit Protects Bengaluru Buyers

Imagine a Bengaluru buyer who, after a year of hearings, finally has a RERA order: refund of the money paid, with interest. Two weeks later a notice arrives. The builder has appealed to the Appellate Tribunal. It can feel like starting again. It need not, because the Real Estate (Regulation and Development) Act, 2016 puts a price on a promoter's appeal that is easy to overlook: the promoter has to deposit money with the Tribunal before the appeal is heard.

The short answer. The proviso to Section 43(5) of the RERA Act says an appeal filed by a promoter shall not be entertained without the promoter first depositing with the Appellate Tribunal at least thirty per cent of the penalty, or a higher percentage fixed by the Tribunal, or the total amount to be paid to the allottee including interest and compensation, or both, before the appeal is heard. Section 44(2) gives any aggrieved party sixty days from receiving the order to appeal, with a power to admit late appeals for sufficient cause, and Section 44(5) asks the Tribunal to try to dispose of appeals within sixty days. The trade-off: the deposit protects the money, but it does not stop the appeal, so the buyer still has to defend the order and wait for the Tribunal.

Who can appeal a RERA order?

Section 43(5) of the Gazette of India text of the RERA Act says any person aggrieved by any direction, decision or order made by the Authority or by an adjudicating officer under the Act may prefer an appeal before the Appellate Tribunal having jurisdiction. The Explanation to that sub-section says "person" includes the association of allottees or any voluntary consumer association registered under any law.

Section 44(1) adds that the appropriate Government, the competent authority, or any person aggrieved by a direction, order or decision of the Authority or the adjudicating officer may prefer an appeal to the Appellate Tribunal. So a buyer who lost, or won less than they asked for, can appeal too.

What must a builder deposit before its appeal is heard?

This is the provision that changes the balance. The proviso to Section 43(5) says that where a promoter files an appeal with the Appellate Tribunal, it shall not be entertained without the promoter first having deposited with the Appellate Tribunal at least thirty per cent of the penalty, or such higher percentage as may be determined by the Appellate Tribunal, or the total amount to be paid to the allottee including interest and compensation imposed on him, if any, or with both, as the case may be, before the appeal is heard.

Read in parts, the proviso covers two kinds of order. Where the Authority has imposed a penalty, the floor is thirty per cent of it, and the Tribunal can set a higher percentage. Where the order directs payment to the allottee, the proviso refers to the total amount to be paid to the allottee, including interest and compensation. Where both apply, it says "or with both".

Why does this matter? Without a deposit rule, an appeal can become a way to hold on to a buyer's money for longer while the case moves through another forum. The proviso changes that calculation. A promoter that wants to challenge an order must first put money where the Tribunal holds it, and the Act ties the amount to what the order says is owed. For a buyer, that means the money is not sitting only with the party that lost.

An illustration with round numbers. Suppose an order directs the promoter to refund Rs 40 lakh with Rs 8 lakh of interest to a buyer, and separately imposes a penalty of Rs 10 lakh. On the proviso's wording, the amounts in play are the total of Rs 48 lakh payable to the allottee, and at least Rs 3 lakh, which is thirty per cent of the penalty, unless the Tribunal sets a higher percentage. How the Tribunal applies the proviso in a given case is for the Tribunal.

How do the appeal timelines work?

The table brings together the time limits in the Act that matter after an order.

Section 44(3) says the Tribunal may, after giving the parties an opportunity of being heard, pass such orders, including interim orders, as it thinks fit. Section 44(4) requires it to send a copy of every order to the parties and to the Authority or adjudicating officer. Section 44(6) lets it call for the records to examine the legality, propriety or correctness of any order.

The time limits above are the ones written into the Act itself. The form of the appeal and the fee that must accompany it are "as may be prescribed" under Section 44(2), which means they come from the rules made under the Act for the State. Before filing or replying, check the current Karnataka rules and the Tribunal's own procedure, and keep proof of the date on which you received each order, because every sixty-day window in the table runs from receipt or communication.

What happens to the money while the appeal runs?

The Act's design is that the promoter's deposit sits with the Tribunal, not with the promoter, while the appeal is decided. That is the practical protection. If the promoter does not make the deposit, the proviso says the appeal shall not be entertained.

Once the appeal is decided and the order stands, recovery follows the Act's ordinary route. Section 40(1) says that if a promoter, allottee or agent fails to pay any interest, penalty or compensation imposed by the adjudicating officer, the Authority or the Appellate Authority, it shall be recoverable in the prescribed manner as an arrear of land revenue. We set out how execution works, using Telangana's procedure as an example, in our guide to RERA order execution.

The allottee's side has its own consequences. A buyer who ignores a Tribunal order faces Section 68, which Parliament amended in 2026. We explained that change in our report on the RERA Section 68 amendment and the allottee penalty.

What should a buyer do when the builder appeals?

Treat the appeal as a defence of an order you already hold. The checklist below keeps the focus on the deposit, the dates and the record.

1. Note the date you received the Authority's or adjudicating officer's order, since Section 44(2) counts sixty days from receipt.
2. When served with the builder's appeal, ask the Tribunal registry whether the deposit required by the proviso to Section 43(5) has been made.
3. If no deposit has been made, point out in your reply that the proviso says the appeal shall not be entertained without it.
4. File your reply with the original order, your payment records and the agreement for sale.
5. If the builder is taking steps that would defeat the order, ask the Tribunal for interim orders under Section 44(3).
6. If the appeal is not disposed of within sixty days, note that Section 44(5) requires the Tribunal to record its reasons in writing.
7. After the Tribunal decides, diary the sixty-day window under Section 58 for any further appeal to the High Court.

If you are buying fresh and want to reduce the chance of ever reaching this stage, start with a project's registration record and disclosures. Our profile of Royal Quartza in Hoskote is one example of a project page to read alongside them.

Can a buyer appeal if the order went against them?

Yes. Section 44(1) allows any person aggrieved by a direction, order or decision of the Authority or the adjudicating officer to appeal, and the Section 43(5) Explanation brings associations of allottees and registered voluntary consumer associations within "person". The pre-deposit proviso applies to appeals filed by a promoter, by its own wording. A buyer's appeal must still be in the prescribed form and accompanied by the prescribed fee under Section 44(2).

The same sixty-day limit applies, counted from the date you receive the copy of the order. If you miss it, the proviso to Section 44(2) lets the Tribunal entertain the appeal later only if it is satisfied there was sufficient cause, so explain any delay clearly.

Frequently asked questions

Does a builder have to deposit money to appeal a RERA order?

Yes. The proviso to Section 43(5) says a promoter's appeal shall not be entertained without first depositing with the Appellate Tribunal at least thirty per cent of the penalty, or a higher percentage set by the Tribunal, or the total amount to be paid to the allottee including interest and compensation, or both, before the appeal is heard.

How long do I have to appeal a RERA order?

Section 44(2) says an appeal shall be preferred within sixty days from the date on which a copy of the direction, order or decision is received, in the prescribed form and with the prescribed fee. The Tribunal may entertain a later appeal if satisfied there was sufficient cause for the delay.

How quickly must the Appellate Tribunal decide?

Section 44(5) says the appeal shall be dealt with as expeditiously as possible, and the Tribunal shall endeavour to dispose of it within sixty days from receipt. Where it cannot, the Tribunal shall record its reasons in writing for not disposing of the appeal within that period.

What can I do after the Appellate Tribunal decides?

Section 58 of the RERA Act allows any person aggrieved by a decision or order of the Appellate Tribunal to file an appeal to the High Court within sixty days from the date of communication. The High Court may allow a further sixty days if sufficient cause prevented an earlier filing.

Last updated 2026-11-14. PropNewz Team.