CG RERA directs developer to form residents’ body, transfer common areas, and pay ₹5 lakh penalty in Abhinandan Galaxy case

News Citation : 2026 LN (CGRERA) 28

April 20, 2026 : The Chhattisgarh Real Estate Regulatory Authority has directed a real estate developer to facilitate the formation of a residents’ association and transfer common areas to it in a dispute involving the “Abhinandan Galaxy” project in Rajnandgaon district. The authority also imposed a penalty of ₹5 lakh on the developer for violations under the Real Estate (Regulation and Development) Act, 2016.

The order, dated April 20, 2026, came after a group of allottees approached the authority alleging multiple deficiencies in the project. The complainants stated that despite purchasing plots in the registered project, key obligations had not been fulfilled. Among their concerns were the absence of a proper boundary wall, unrestricted access to internal roads by outsiders, and failure to establish a residents’ association. They also alleged that several promised amenities and basic infrastructure services remained incomplete or irregular.

According to the complaint, the lack of a boundary wall and controlled entry had led to security risks and unauthorized use of internal roads, affecting residents’ privacy and safety. The allottees further argued that without a formal association, there was no mechanism for collective maintenance or management of common facilities.

The developer contested the allegations, claiming that the project had been completed and a completion certificate had been obtained in October 2019. It maintained that internal roads and infrastructure were developed as per approvals and that many allegations were either unsupported or time-barred. The developer also stated that a residents’ association could not be formed due to a lack of participation from plot buyers.

After examining the submissions and records, the authority held that the matter fell within its jurisdiction and that the issue of transferring common areas and forming an association remained unresolved. It noted that under the RERA framework, common areas cannot be unilaterally transferred or treated as public property and must be handed over to a duly formed association of allottees.

The authority rejected the developer’s argument that internal roads had been effectively made public, observing that such areas form part of the common facilities meant for residents. It found that the failure to transfer these areas and to facilitate the formation of an association constituted a violation of statutory obligations.

In its final directions, the authority ordered the developer to assist in forming a registered association of residents within 45 days and to transfer all common areas to it through a registered conveyance deed. It also held that the violation of provisions relating to adherence to sanctioned plans and obligations toward allottees attracted penalty, leading to the imposition of ₹5 lakh.

The authority clarified that claims for compensation by allottees could be pursued separately before the adjudicating officer under the Act.

Case No. : M-PRO-2025-03300