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Sections 36–37 of the Real Estate (Regulation and Development) Act, 2016: Interim Orders and Directions

During an inquiry, if the Authority is satisfied that an act in contravention of the Act, rules or regulations has been committed and continues, or is about to be committed, it...

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Updated
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6 answered
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Topic
RERA
Published
October 1, 2026
Last updated
Oct 1, 2026
Reading time
7 min
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Last updated: October 2026Verified against: Government sources

Two short sections give the Authority its working tools. Section 36 lets it restrain a promoter, allottee or real estate agent from carrying on a contravening act while an inquiry is pending, even without notice. Section 37 lets it issue directions to discharge its functions, which are binding on all concerned. If an interim order has been passed against you, or you need one, our legal dispute resolution service can help.

At a glance

SectionWhat it provides
36Interim order restraining a contravening act during an inquiry; until conclusion or further orders; may be without notice
37Directions to promoters, allottees or agents from time to time; binding on all concerned

Section 36: interim orders

"Where during an inquiry, the Authority is satisfied that an act in contravention of this Act, or the rules and regulations made thereunder, has been committed and continues to be committed or that such act is about to be committed, the Authority may, by order, restrain any promoter, allottee or real estate agent from carrying on such act until the conclusion of such inquiry of until further orders, without giving notice to such party, where the Authority deems it necessary."

The printed text says "inquiry of until further orders" for "inquiry or until further orders". The meaning is clear.

Conditions for an interim order

ConditionText
A pending inquiry"Where during an inquiry". The inquiry may be one under section 35 or any other inquiry before the Authority; the text says only "an inquiry"
Satisfaction of the AuthorityThat an act in contravention of the Act, rules or regulations has been committed and continues, or is about to be committed
Against whomAny promoter, allottee or real estate agent
What it doesRestrains the person from carrying on such act
For how longUntil the conclusion of the inquiry or until further orders
NoticeMay be given without notice to the party "where the Authority deems it necessary"

Two points stand out.

  1. It restrains, it does not compel. The order stops "such act". Positive directions, such as to produce a document or do a thing, fall under section 37 rather than section 36.
  2. Notice may be dispensed with. The Authority may pass the order without hearing the party first. The text leaves this to the Authority's view of necessity. It does not say what the party can then do. The remedy is to ask for a recall or modification, or to appeal against the order to the Appellate Tribunal; for appeals see the Authority and the Appellate Tribunal. The text of section 36 does not set out a later hearing, but section 38(2) says the Authority is guided by the principles of natural justice; see section 38.

The text also does not limit "act" to particular violations, so a restraint could in principle cover selling units without registration (see section 3), advertising without the registration number, or other contraventions, as long as the act is in contravention of the Act, rules or regulations and an inquiry is pending.

Example. A complaint alleges that Rao Estates is selling plots in a project that is not registered. While the Authority inquires, it is satisfied the sales continue. It passes an order restraining Rao Estates from selling any plot in that project until the inquiry ends or the Authority orders otherwise, without first giving notice, because further sales would add to the buyers' harm. Rao Estates can seek a hearing or appeal.

Section 37: directions

"The Authority may, for the purpose of discharging its functions under the provisions of this Act or rules or regulations made thereunder, issue such directions from time to time, to the promoters or allottees or real estate agents, as the case may be, as it may consider necessary and such directions shall be binding on all concerned."

ElementText
PurposeDischarging its functions under the Act, rules or regulations
To whomPromoters, allottees or real estate agents, as the case may be
Timing"From time to time"
Test"As it may consider necessary"
Effect"Binding on all concerned"

The functions are those listed in section 34 and elsewhere. A direction can be general (to all promoters in an area) or specific (to one promoter). The text does not say which, and it does not say that a direction must be published; whether directions are put on the Authority's website depends on the State.

"Binding on all concerned" is wide: it is not limited to the party who received the direction. How a direction is enforced when it is not obeyed is dealt with in later sections, notably section 40 on recovery and enforcement of orders, and in the penalty sections for promoters, agents and allottees who do not comply.

Section 36 and 37 compared

Section 36Section 37
NatureInterim restraintDirections for discharge of functions
Needs a pending inquiry?YesNo; "for the purpose of discharging its functions"
Without notice?Yes, where deemed necessaryNot stated
DurationTill conclusion of inquiry or further ordersNot stated
AgainstPromoter, allottee or agentPromoter, allottee or agent

What these sections do not say

  • No maximum duration for an interim order beyond "until the conclusion of such inquiry or until further orders".
  • No requirement to record reasons in sections 36 and 37 (compare section 35(1), which requires reasons).
  • No express right to apply for recall of an order passed without notice.
  • No statement of the consequence of disobeying a direction; see the later sections on non-compliance.

Need help with an interim order?

An order passed without notice has immediate effect, so the first days matter. Our legal dispute resolution team can review the order, advise on a recall request or appeal and, if you are the complainant, on how to ask for urgent restraint.

Key takeaways

  • The Authority can restrain a promoter, allottee or agent during an inquiry if a contravention continues or is about to happen.
  • The order can be made without notice where the Authority deems it necessary, and lasts until conclusion of the inquiry or further orders.
  • Section 37 lets it issue directions from time to time, binding on all concerned.
  • Section 36 requires a pending inquiry; section 37 does not.
  • Neither section states a time limit or a penalty for breach.

Read next

Disclaimer: Based on the Real Estate (Regulation and Development) Act, 2016 as enacted, as consulted on 1 October 2026. Rules, forms, fees and procedures are made by each State and Union territory and its Real Estate Regulatory Authority and differ from State to State. This article is general information, not legal advice; check the official text and your State's rules before acting.

Quick recapKey facts & short answers

Key Facts About Sections 36

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Can the Authority stop a builder from selling during an inquiry?

Yes, if satisfied that a contravening act continues or is about to be committed, it may restrain the promoter until the inquiry ends or further orders (section 36).

Can it do so without hearing the builder?

Yes, "without giving notice to such party, where the Authority deems it necessary".

Mutate the records after purchase; ownership on paper should match ownership in the revenue books.

— TaxClue Property Desk

Sections 36: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Vikas Sharma Tax & Compliance Expert at TaxClue

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Yes, if satisfied that a contravening act continues or is about to be committed, it may restrain the promoter until the inquiry ends or further orders (section 36).

Yes, "without giving notice to such party, where the Authority deems it necessary".

Yes. Section 36 covers any promoter, allottee or real estate agent.

Orders issued from time to time to promoters, allottees or agents to discharge the Authority's functions; they are binding on all concerned.

Section 37 does not require one.

You may seek a hearing before the Authority or appeal under the Act's appeal provisions.