Supreme Court Holds Parallel Proceedings in RERA and Arbitration Cannot Continue After Electing RERA

Case Snapshot

• Case Name: Neo Developers Private Limited v. Rahul Bhargava and Ors.

• Citation: 2026 INSC 875

• Bench: Justice J.B. Pardiwala and Justice K. Vinod Chandran

• Date of Judgment: August 11, 2026

• Area of Law: Real Estate Law, Arbitration, RERA, Consumer Protection

The Judgment in One Line

Once a party elects to approach RERA for remedies under the agreement, it cannot subsequently invoke arbitration for the same disputes.

Why This Judgment Matters

This judgment clarifies the crucial issue of election of remedies between the Real Estate (Regulation and Development) Act, 2016, and arbitration under the Arbitration and Conciliation Act, 1996. The Supreme Court has held that once a party chooses to approach the Real Estate Regulatory Authority (RERA) for enforcement of rights under a builder-buyer agreement, it cannot simultaneously or subsequently invoke arbitration for the same disputes. The judgment also clarifies that RERA orders, once passed and not appealed, become final and binding, and parties cannot circumvent them by initiating parallel proceedings. This will prevent forum shopping and ensure finality in RERA proceedings.

Background

The appellant-developer entered into Builder Buyer Agreements (BBA) and Memorandums of Understanding (MoU) with the respondents for the sale of undivided commercial space in the 'Neo Square' project at Gu

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