When Your Builder Appeals a RERA Order: The Section 43(5) Pre-Deposit Rule for Bengaluru Buyers

A Bengaluru buyer wins a RERA order: refund of the amount paid, with interest. A few weeks later, a notice arrives. The builder has appealed. For many buyers, that word feels like the order has been suspended and the fight has started over. The RERA Act was written with that worry in mind. Before a promoter's appeal can even be heard, the Act asks the promoter to put money on the table.

The short answer. The proviso to Section 43(5) of the Real Estate (Regulation and Development) Act, 2016 says that where a promoter files an appeal with the Appellate Tribunal, it shall not be entertained without the promoter first depositing with the Tribunal at least thirty percent of the penalty, or such higher percentage as the Tribunal determines, or the total amount to be paid to the allottee including interest and compensation, or both, as the case may be, before the appeal is heard. Appeals are to be filed within sixty days under Section 44(2). The trade-off: the pre-deposit makes a promoter's appeal costlier and protects buyers' amounts while the appeal runs, but the appeal itself can still take time, so a buyer with a favourable order should plan for months, not days.

Can a builder appeal against your RERA order?

Yes. Section 43(5) says any person aggrieved by any direction or 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 over the matter. Section 44(1) repeats that the appropriate Government, the competent authority or any aggrieved person may appeal to the Tribunal.

The same right is open to buyers. The explanation to Section 43(5) says that for this purpose "person" shall include the association of allottees or any voluntary consumer association registered under any law. So an association can appeal too, not just an individual buyer.

What changes for a promoter is the condition attached to its appeal. That is the proviso, and it is the part that matters most to a buyer holding an order in their favour.

What must a promoter deposit before its appeal is heard?

The proviso to Section 43(5) says that where a promoter files an appeal, it shall not be entertained without the promoter first having deposited with the Appellate Tribunal at least thirty percent of the penalty, or such higher percentage as may be determined by the 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 closely, there are two kinds of money in that sentence. One is a penalty imposed on the promoter, where the floor is thirty percent and the Tribunal can set a higher share. The other is the amount payable to the allottee, including interest and compensation, where the proviso refers to the total amount. Which applies, or whether both apply, depends on what the order under appeal contains.

For a buyer with a refund or interest order, the second part is the important one. The deposit requirement links the promoter's appeal to the money the order says you are owed.

How long does a party have to appeal?

Sixty days. Section 44(2) says every appeal shall be preferred within sixty days from the date on which a copy of the direction, order or decision is received by the aggrieved person, in the form and with the fee prescribed. Its proviso lets the Tribunal entertain an appeal after sixty days if it is satisfied that there was sufficient cause for not filing it within that period.

For a buyer, two dates matter. The date you received the order starts your own clock if you want to appeal. The date the builder received it starts theirs. Keep the envelope, email or portal record showing when the order reached you.

Our earlier explainer on the sixty day appeal window at the Appellate Tribunal covers filing an appeal yourself. This piece focuses on what happens when the builder is the one appealing.

How quickly should the Tribunal decide?

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

Section 44(3) says the Tribunal, after giving the parties an opportunity of being heard, may pass such orders, including interim orders, as it thinks fit. Section 44(4) says it shall send a copy of every order to the parties and to the Authority or adjudicating officer.

The word "endeavour" is important. Sixty days is a target the Act sets, not a deadline that ends the appeal automatically. A buyer should keep track of hearing dates and attend or be represented at each one.

Can the matter go further after the Tribunal?

Yes, on limited grounds. Section 58(1) says any person aggrieved by a decision or order of the Appellate Tribunal may file an appeal to the High Court within sixty days from the date of communication of the decision, on one or more of the grounds specified in Section 100 of the Code of Civil Procedure, 1908. The High Court may entertain a late appeal if satisfied that the appellant was prevented by sufficient cause.

The explanation to Section 58 says "High Court" means the High Court of the state where the real estate project is situated, so for a Bengaluru project that is the Karnataka High Court. Section 58(2) adds that no appeal shall lie against a decision or order of the Tribunal made with the consent of the parties.

That last point matters if a settlement is offered during the appeal. An order passed with both sides' consent closes the door to a further appeal under Section 58, so read any proposed terms carefully before agreeing.

What if the builder still does not pay after the appeal?

The Act has recovery provisions for that stage. Section 40(1) says that if a promoter fails to pay any interest, penalty or compensation imposed on him by the adjudicating officer, the Regulatory Authority or the Appellate Authority under the Act, it shall be recoverable from the promoter, in the manner prescribed, as an arrears of land revenue. That covers amounts confirmed by the Tribunal as well as those in the original order.

Separately, Section 63 says a promoter who fails to comply with or contravenes any orders or directions of the Authority is liable to a penalty for every day the default continues, which may cumulatively extend up to five percent of the estimated cost of the project as determined by the Authority. That penalty goes to the state, not to you, but it adds pressure on a promoter to comply.

Our guide to recovering money when a RERA order is not paid sets out the steps a buyer can take with the Authority once an order becomes payable.

Throughout, keep a single file with the original order, the appeal papers, any Tribunal order on the pre-deposit, and every payment you receive. If the Tribunal confirms your order and the deposit is with it, ask how the amount will be released and keep a record of each step.

What should Bengaluru buyers do when a builder appeals?

Stay organised and keep the paper trail tight. Use this checklist:

1. Note the date you received the original RERA order and keep proof of it.
2. Ask for a copy of the builder's appeal and the date it was filed.
3. Check whether the Tribunal records a pre-deposit under the proviso to Section 43(5).
4. Keep your original complaint, order, receipts and agreement ready for hearings.
5. Attend or be represented at every hearing the Tribunal lists.
6. Track whether the appeal is decided within sixty days or reasons are recorded.
7. Read any settlement terms closely, since a consent order cannot be appealed further.

An appeal is part of the process the Act lays out. It does not erase the order you won, and the pre-deposit requirement means a promoter's appeal is not a cost free way to delay paying.

Bengaluru buyer FAQs on builder appeals under RERA

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

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

How long does a party have to appeal a RERA order?

Section 44(2) of the RERA Act says an appeal shall be filed within sixty days from the date a copy of the order is received by the aggrieved person. The Appellate Tribunal may entertain an appeal after sixty days if satisfied there was sufficient cause for the delay in filing.

Can an association of allottees appeal under RERA?

Yes. The explanation to Section 43(5) of the RERA Act says that for the purpose of that subsection, "person" includes the association of allottees or any voluntary consumer association registered under any law, so such associations can prefer an appeal before the Appellate Tribunal against an order of the Authority.

Can a Tribunal order be challenged in the High Court?

Section 58(1) of the RERA Act allows an appeal to the High Court within sixty days of communication of the Tribunal's order, on grounds specified in Section 100 of the Code of Civil Procedure. Section 58(2) says no appeal lies against a Tribunal order made with the consent of the parties.

Last updated 2026-10-23. PropNewz Team.