Section 8 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 8 answers the question buyers ask when a project stalls: who completes it if the registration lapses or is revoked? It says the Authority may consult the appropriate Government and take action, including having the remaining work done by the competent authority or by the association of allottees. If you are an allottee in a stalled project, our legal dispute resolution service can help you plan your next step.
"Upon lapse of the registration or on revocation of the registration", the Authority may consult the appropriate Government and take such action as it deems fit, including carrying out the remaining development works by the competent authority or by the association of allottees or in any other manner the Authority determines. No direction, decision or order under section 8 takes effect until the appeal period has expired. If registration is revoked, the association of allottees has the first right of refusal to carry out the remaining work.
Section 8 at a glance
| Part | What it provides |
|---|---|
| Main text | Trigger: lapse of registration or revocation; the Authority may consult the appropriate Government and act, including remaining works by the competent authority, the association of allottees or another manner |
| First proviso | No direction, decision or order under this section takes effect until the expiry of the appeal period under the Act |
| Second proviso | On revocation, the association of allottees has the first right of refusal for the remaining development works |
The heading and the text do not match
The marginal heading reads "Obligation of Authority consequent upon lapse of or on revocation of registration". The operative words are different: the Authority "may consult the appropriate Government to take such action as it may deem fit". So the heading speaks of an obligation, while the text confers a discretion. Read the operative text. The heading is not part of the enacted words and cannot enlarge them, and the text does not state a time within which the Authority must act.
The two triggers
Section 8 does not itself define "lapse"; it uses the word as the Act uses it in other places. The reading above (end of validity without extension) follows section 5(3) and section 6, but the section does not spell it out.
What the Authority may do
"The Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by:
- the competent authority, that is, the local or other body that sanctions development (section 2(p));
- the association of allottees; or
- in any other manner, as may be determined by the Authority."
Points to note:
- The Authority consults the appropriate Government; the Act does not make the Government's view binding on the Authority, and it does not say which State department is consulted.
- The list is not closed. "Any other manner" allows a replacement developer or other solution, which the text leaves to the Authority.
- The section talks of remaining development works. "Development works" has the meaning in section 2(t): external and internal development works. It does not itself speak of refunds to allottees.
First proviso: waiting for the appeal period
"No direction, decision or order of the Authority under this section shall take effect until the expiry of the period of appeal provided under the provisions of this Act."
This protects the promoter's right to appeal: nothing under section 8 bites until the time to appeal to the Appellate Tribunal has run out. The number of days is not in section 8; the appeal provision is section 44, which allows sixty days from receipt of the order, with a later appeal entertained on sufficient cause. If an appeal is filed, the text of section 8 does not say whether the order stays suspended; it says only "until the expiry of the period of appeal".
Second proviso: first right of refusal for allottees
"In case of revocation of registration of a project under this Act, the association of allottees shall have the first right of refusal for carrying out of the remaining development works."
| Situation | Association of allottees' position |
|---|---|
| Registration revoked | First right of refusal for the remaining works |
| Registration lapsed | Not given a first right by the proviso; the main text still lists the association among the options |
"First right of refusal" means the association is offered the work first and may decline. The text does not say how long it has to decide, how it is to be funded, or what an "association of allottees" must look like (for instance whether a registered society is needed). Those details come from the rules and the Authority's directions.
Example. The registration of Greenview Heights is revoked under section 7 after the promoter defaults. The Authority consults the State Government and proposes that the remaining external works be carried out by the local development authority. Under the second proviso, the association of allottees must first be given the chance to take on the remaining works. The order does not take effect until the appeal period has expired, so the promoter's time to appeal passes first.
How section 8 links with section 7(4)
Section 7(4)(b) and (c) require the Authority, on revocation, to facilitate remaining works "in accordance with the provisions of section 8" and to block, and then release, the project bank account for that purpose. Section 8 is therefore the second half of a two-step route: revocation (section 7), then completion (section 8).
What section 8 does not say
- It gives no deadline for the Authority to act.
- It does not say who pays for the remaining works or how the frozen account is applied.
- It does not deal with refunds or interest; see section 18 for return of amount.
- It does not name the competent authority; that depends on the project's location.
Need help in a stalled project?
When a registration lapses or is revoked, the early decisions about who completes the work and how the allottees organise matter most. Our legal dispute resolution team can advise an association of allottees on its first right of refusal, or a promoter on the appeal period and next steps.
Key takeaways
- The text says the Authority "may" consult the appropriate Government and act, although the heading speaks of an obligation.
- Remaining works can be done by the competent authority, the association of allottees or another manner.
- No order under section 8 takes effect until the appeal period expires.
- On revocation, the association of allottees has the first right of refusal.
- Section 8 does not deal with refunds, funding or timelines.
Read next
- Section 7: revocation of registration
- Section 18: return of amount and compensation
- RERA Authority and Appellate Tribunal
- Impact of RERA on homebuyers
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.