RERA - The Real Estate ( Regulation and Development ) Act

Sunday, 26 July 2020

https://www.reraconsultants.in/analyzing-the-importance-of-agreement-for-sale-and-rights-and-duties-of-promoter-and-allottees-under-the-provisions-of-the-real-estate-regulation-and-development-act-2016.php

ANALYZING THE IMPORTANCE OF AGREEMENT FOR SALE AND RIGHTS AND DUTIES OF PROMOTER AND ALLOTTEES UNDER THE PROVISIONS OF THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

by Hitendra V.Hiremath

● Authored by Mr. Hitendra V.Hiremath, presently works as Legal Consultant with RERA Consultants LLP and has earlier worked as In-House Counsel at M/s. Shriram Properties Private Limited and thereafter with an investment banking firm Capaegis at Bengaluru, Karnataka, India

What is an Agreement for Sale?

As per Section. 2 (c) of The Real Estate (Regulation and Development) Act, 2016 ("Act") defines an agreement for sale as an agreement entered into between the promoter and the allottee.

The definition doesn't actually define an Agreement for Sale, however, the definition can be deduced keeping in mind the objective of the Act, an Agreement for Sale is a binding legal contract entered between the Promoter and Allottee to sell an apartment, building or plot as the case may be. The Agreement for Sale is also required to be notified under the respective state rules and all Agreement for Sale are necessarily required to follow the notified drafts.

An Agreement for Sale constitutes the terms and conditions to sell an apartment, building or plot as the case may be which includes the consideration to be paid for purchase along with the such necessary terms dealing with construction/development, timeline to make payments, obligations in case of default in payments, timeline of delivery, obligations in case of failure to deliver the possession of apartment, building and plot as the case may be along with such other necessary clauses.

Further as per Section. 54 of Transfer of Property Act, 1882 an Agreement for Sale is a promise to transfer/convey a property in future on satisfying certain terms and conditions and such agreement shall not in any manner does not create any absolute rights or interest in the property unless meeting such stipulated terms and conditions.

After the provisions of the Act coming into force, it is now essential that Promoter must include all necessary obligations as per the Act.

Is it necessary to enter into an Agreement for Sale?

Yes, an Agreement for Sale gives a right to the allottee to own an apartment, building or plot as the case may be on satisfaction of the conditions agreed under the Agreement for Sale. Likewise, the Promoter shall also get a right to receive consideration under Agreement for Sale on fulfilling certain terms and conditions.

When an Agreement for Sale is entered and Is it necessary to be registered?

As per Section. 13(1) of the Act, an Agreement for Sale needs to be executed with allottee, if the Promoter intends to accept a sum more than 10% (ten percent) of the cost of the an apartment, building or plot as the case may be and such Agreement for Sale has to be registered.

What are the necessary provisions an Agreement for Sale should constitute as per Act?

As per Section. 13(2) of Act, an Agreement for Sale should include the following:

● Particulars of development of project including the construction of building and apartments.

● Necessary specifications and details of internal and external development works.

● Dates and manner by which the payment towards the cost of the apartment, building or plot as the case may be are to be made by the allottees

● Date of handing over of possession of the apartment, building or plot as the case may be

● Applicable rates of interest payable by the promoter to the allottee and the allottee to the promoter in case of default; and

● Such other particulars, as may be prescribed or agreed between the allottee and promoter not being in contravention to the object of the Act.

What are the rights and obligations of Promoter under Act in furtherance of entering into an Agreement for Sale?

As per Section. 11(4)(a) of the Act, the Promoter shall be responsible for all obligations, as agreed with allottee under the Agreement for Sale.

The promoter as per Section. 11(4)(h) of the Act, after executing an Agreement for Sale with respect to an apartment, building or plot as the case may be, shall not mortgage or create charge. If in case a mortgage or charge is created by Promoter then it shall not affect the right and interest of the allottee.

Further as per Section. 11(5) of Act, the Promoter can only cancel the allotment of an apartment, building or plot as the case may be, as per the terms of the Agreement for Sale.

What are the rights and obligations of Allottee under Act in furtherance of entering into an Agreement for Sale?

As per Section. 19(1) and (2) of the Act, the allottee is entitled to know all information with respect to project or with respect to his apartment, building or plot as the case may be, as agreed under the Agreement for Sale.

As per Section. 19(4) and Section. 18(1) of the Act, the allottee is entitled to claim refund of entire amount paid along with interest and compensation, if the Promoter fails to comply or give possession of apartment, building or plot as the case may be in accordance with the terms of the Agreement for Sale or as per proviso of Section. 18(1) of the Act, if the allottee does not intend to withdraw from the project then allottee is entitled to the interest for every month, till the handing over of possession at such rate as may be prescribed.

As per Section. 19(6) of the Act, the allottee is responsible to make necessary payments in the manner and time specified as per the Agreement for Sale, further as per Section. 19(7) of the Act, the allottee shall be liable to pay interest for delay in payment as agreed, however the liability towards payment of interest by allottee can be reduced by the Promoter as per Section. 19(8). In case of cancellation by allottee, the promoter can withhold the booking amount i.e., upto 10% (ten percent) of the cost of the apartment, building and plot as the case may be.

As per proviso to Section. 11(5) of Act, the allottee is entitled to approach the Authority if promoter cancels the allotment of apartment, building or plot as the case may be, and such cancellation is not in accordance with the terms of the agreement for sale, unilateral and without any sufficient cause.

Who can hear the matters for violation of rights and duties of Promoter and Allottee?

Adjudicating Officer appointed as per sub-section (1) of Section 71 of the Act is empowered to hear the matters. A complaint under Section.31 of the Act can be filed by an allottee for violation of his rights under Section.18 and 19 and the promoter can file a complaint as against allottee for violation of duties as mentioned under Section.19.

Judicial Pronouncements

In Prakash Chand Arohi v. M/s. Pivotal Infrastructure Pvt Ltd, Complaint No. RERA-PKL-COMP.49/2018 decided by Haryana Real Estate Regulatory Authority, Panchkula. In the instant complaint, Mr. Rajan Gupta, Chairman observed the following:

In the instant complaint, it was held:

1. All agreements executed prior to the Act coming into force are valid except which are held as invalid by higher courts and which are universally acknowledged as such, as unfair trade practices.

2. Agreement for Sale with respect to apartment, building or plot as the case may of an ongoing or new project shall be executed in accordance with the model agreement annexed with the rules.

3. All agreements made preceding the date of the Act coming into force shall be enforced by RERA in accordance with RERA and in accordance with the terms and conditions settled between the parties. If promoters of an ongoing project have revised the schedule of completion of a project while getting the project registered with the RERA, the revised schedule will not be automatically applicable on the existing buyers. Existing buyers will be entitled to delay compensation.

DISCLAIMERS

● This post underlines the information as per the applicable provisions of the Real Estate (Regulation and Development) Act, 2016; and

● We recommend the Promoters to seek the assistance of the Professionals involved in the real estate practice in case of any queries, clarifications with respect to advertisement of the real estate project.

CONTACT

For any other details, clarifications, assistance, advise and other services, please visit www.reraconsultants.in; or can get in touch with us at 080 – 2223 3003 or email to consult@reraconsultants.in

https://www.reraconsultants.in/whether-registration-of-a-real-estate-project-is-mandatory-if-promoter-intends-to-lease-the-project-instead-of-sale.php

WHETHER REGISTRATION OF A REAL ESTATE PROJECT IS MANDATORY IF PROMOTER INTENDS TO LEASE THE PROJECT INSTEAD OF SALE?

by Hitendra V.Hiremath

INTRODUCTION

It is necessary to understand the definition of 'Lease' much before discussing the registration of real estate project wherein the promoter intends to lease the project. Section. 105 of the Transfer of Property Act, 1882 defines "a lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee. Who accepts the transfer on such terms.

Lessor, Lessee, premium and rent defined: The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be rendered is called the rent"

Now, looking onto the definition of the term lease, the essential ingredients of a lease are i) transfer of a right in the property; ii) duration of lease and iii) payment of consideration. Further, it is clear that a lease can be made for perpetuity on receipt of the rent or premium.

Now, the answer as to whether a real estate project is compulsorily required to be registered if the promoter intends to lease the apartment, building or plot, as the case may be, instead of selling is not specifically dealt under the provisions of The Real Estate (Regulation and Development) Act, 2016 ("Act"). However the definition of the Allottee has to be taken into account to interpret the same, as per Section.2 (d) of the Act, an allottee in relation to a real estate project, means the person to whom a plot, apartment or building, as the case may be, has been allotted, sold ( whether a freehold or leasehold) or otherwise transferred by the promoter, and includes the person who subsequently acquires the said allotment through sale, transfer or otherwise but does not include a person to whom such plot, apartment or building, as the case may be, is given on rent;

Further Section. 11(4)(c) of the Act dealing with function and duties of promoter stipulates that promoter shall obtain the lease certificate, where the real estate project is developed on a leasehold land, specifying the period of lease, and certifying that all dues and charges in regard to the leasehold land has been paid, and to make the lease certificate available to the association of allottees;

WHAT DOES THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 MANDATE?

Section.3(1) of the Act deals with prior registration of real estate project with real estate regulatory authority which stipulates that no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area without registering the real estate project with the Real Estate Regulatory Authority established under this Act.

The provision deals with only sale of the apartment, building or plot, as the case may be and is silent over the registration of real estate project where the promoter intends to lease the same instead of sale.

IS IT NECESSARY TO REGISTER THE REAL ESTATE PROJECT IF THE PROMOTER INTENDS TO PROMOTE THE PROJECT IN A MANNER THAT LEASE AMOUNTS TO SALE?

We are of the view that a real estate project has to be registered irrespective if the promoters intention either to sale or lease due to the following reasons:

1. If the proposed lease is for perpetuity: If the promoter enters into an Agreement of Lease with no end date and without having any provision for cancellation or termination.

2. The period of lease is for 99 years or more, wherein the transaction essentially cannot be termed as lease but may be a sale as leaseholder by virtue of the term of 99 years ought to acquire the rights of an allottee as mentioned under Section. 19 of the Act for example in State of Karnataka, the statutory bodies like Karnataka Industrial Area Development Board used to allot the land on 99 years clause of lease cum allotment wherein the same was diluted to ten years for land parcels less than 2 acres recently. Further, even the process of allotment of plot to an allottee in State of Karnataka by Karnataka Housing Board is on lease cum allotment basis.

JUDICIAL PRONOUNCEMENTS:

1. In Lavasa Corporation Limited v. Individual Allottees,, the Bombay High Court held that the provisions of the Act, shall apply for the agreements styled as agreement to lease executed for a time of 999 years on payment of substantial consideration. The Bombay High Court further held the following:

2. Nomenclature of the document cannot be relied upon and such the contents of the agreement have to be read in order to ascertain the intention and understanding between the parties. Just is terming a document as 'agreement of lease' will not take away the right of allottee as mentioned under the Act.

3. Definition of allottee should not be construed in a restrictive manner and will include the leaseholders if the transaction is not essentially a lease, but a sale.

4. In Commissioner of Income Tax, Tamil Nadu v. Rane Brake Lining Limited, the Madras High Court relied upon the apex court ruling of R K Palshikar (HUF) v. CIT, MP Nagpur holding that in a lease of plot of 99 years, the assessee had parted with an asset of an enduring nature and accordingly the transaction amounted to transfer of a capital asset.

CONCLUSION:

We are of the view that any real estate project being developed with an intention to lease in perpetuity by receiving substantial amounts of consideration being equivalent to the sale price of the apartment, building or plot, as the case may be shall required to be registered

However, leasing arrangements for relatively shorter duration, where major part of price of apartment, building or plot, as the case may be will not be paid to the promoter shall require further in detail examination by the Real Estate Regulatory Authorities. We hope that all the Real Estate Regulatory Authorities shall come down with the clarifications and notifications in this regard in near future.

DISCLAIMERS

● This post underlines the information as per the applicable provisions of the Real Estate (Regulation and Development) Act, 2016; and

CONTACT

https://www.reraconsultants.in/2019-04-20-modification-of-sanctioned-plan-after-commencement-of-real-estate-project-necessary-compliances-under-the-real-estate-regulation-and-development-act-2016-.php

MODIFICATION OF SANCTIONED PLAN AFTER COMMENCEMENT OF REAL ESTATE PROJECT – NECESSARY COMPLIANCES UNDER THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016.

by Hitendra V.Hiremath

● Authored by Mr. Hitendra V.Hiremath, works as Legal Consultant with M/s. RERA Consultants LLP and has earlier worked as In-House Counsel at M/s. Shriram Properties Private Limited and thereafter with an investment banking firm Capaegis at Bengaluru, Karnataka, India

INTRODUCTION

It is necessary to understand as what does a sanctioned plan means under the provisions of the Real Estate (Regulation and Development) Act, 2016 ("Act"), as per Section. 2(zq) of the Act, a sanctioned plan means the site plan, building plan, service plan, parking and circulation plan, landscape plan, layout plan, zoning plan and such other plan and includes structural designs, if applicable, permission such as environment permission and such other permissions, which are approved by the competent authority prior to start of a real estate project; so the definition has included all plans not only limiting building plan but including all other requisite permissions required to be obtained from the competent authorities with respect to a real estate project.

As per Section.4(2)(d) of the Act, the promoter while filing an application for registration of a real estate project has to upload the sanctioned plan along with other documents as stipulated under Section.4(2) of Act and other documents as stipulated under the respective rules.

After commencement of development of real estate project, due to varied reasons if the promoter intends to modify the existing sanctioned plan of the real estate project, the promoter has to obtain the written consent by two-third allottees of the real estate project.

This post in brief details the requirements, in case the promoter intends to modify the existing sanctioned plan for the real estate project.

FUNCTIONS AND DUTIES OF PROMOTER WITH RESPECT TO SANCTIONED PLAN

It is necessary to know as to what are the functions and duties of the promoter with respect to sanctioned plan being uploaded whilst registering the project before knowing the process of modification of plan sanction, following are the functions and duties of the promoter under the provisions of the Act:

● As per Section. 11(3)(a) of the Act, the promoter at the time of booking and issue of allotment letter shall be responsible to make available the allottee the sanctioned plan, layout plans, along with specifications, approved by the competent authority by display at the site or such other place as specified by the regulations made by the Authority;

● As per Section. 14(1) of the Act, the promoter shall develop and complete the real estate project in accordance with the sanctioned plans, layout plans and specifications as approved by the competent authorities.

Similarly the allottee under Section. 19(1) and 19(5) of the Act is entitled to obtain the information pertaining to the sanctioned plan, layout plan by the Promoter for the real estate project. Failure on part of the promoter to provide the information and details of the sanctioned plan, then allottee shall have a right to withdraw from the project and promoter shall be liable to pay entire amount paid by the allottee with the applicable interest.

NECESSARY COMPLIANCES UNDER THE ACT IF PROMOTER INTENDS TO MODIFY THE SANCTIONED PLAN:

Section. 14 of the Act deals with the necessary compliances to be made, if promoter intends to modify the sanctioned plan:

Section.14: Adherence to sanctioned plans and project specifications by the promoter:

(1) The proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans, layout plans and specifications as approved by the competent authorities.

(2) Notwithstanding anything contained in any law, contract or agreement, after the sanctioned plans, layout plans and specifications and the nature of the fixtures, fittings, amenities and common areas, of the apartment, plot or building, as the case may be, as approved by the competent authority, are disclosed or furnished to the person who agree to take one or more of the said apartment, plot or building, as the case may be, the promoter shall not make—

(i) any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities described therein in respect of the apartment, plot or building, as the case may be, which are agreed to be taken, without the previous consent of that person:

Provided that the promoter may make such minor additions or alterations as may be required by the allottee, or such minor changes or alterations as may be necessary due to architectural and structural reasons duly recommended and verified by an authorised Architect or Engineer after proper declaration and intimation to the allottee.

Explanation.—For the purpose of this clause, "minor additions or alterations" excludes structural change including an addition to the area or change in height, or the removal of part of a building, or any change to the structure, such as the construction or removal or cutting into of any wall or a part of a wall, partition, column, beam, joist, floor including a mezzanine floor or other support, or a change to or closing of any required means of access ingress or egress or a change to the fixtures or equipment, etc.

(ii) any other alterations or additions in the sanctioned plans, layout plans and specifications of the buildings or the common areas within the project without the previous written consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in such building.

Explanation.—For the purpose of this clause, the allottees, irrespective of the number of apartments or plots, as the case may be, booked by him or booked in the name of his family, or in the case of other persons such as companies or firms or any association of individuals, etc., by whatever name called, booked in its name or booked in the name of its associated entities or related enterprises, shall be considered as one allottee only.

So, Section. 14(2) of the Act stipulates that the promoter shall not make any additions or alterations to the sanctioned plans, layout plans, specifications and the nature of the fixtures, fittings and amenities described therein in respect of the apartment, plot or building, as the case may be, without the previous consent of the person, however the promoter make minor additions or alterations as required by allottee or for architectural or structural reasons duly recommended and verified by the an authorised Architect or Engineer after proper declaration and intimation to the allottee/s.

Section. 14(2) indirectly states that in case of major additions or alterations in specifications of the real estate project, the promoter will have to mandatorily take two-third written consent from the allottee/s of the real estate project.

Prior to obtaining the written consent, the promoter has to reveal such modifications to the allottee/s of the project and thereafter obtain the consent.

It is advised that the promoter discloses the proposed modifications and change in specifications of the project to the allottee/s and ask them to give consent by signing the said communication or the consent can be obtained through email with the same procedure.

PROCEDURE TO UPLOAD THE MODIFIED PLAN SANCTION AND OTHER NECESSARY COMPLIANCES TO BE CARRIED BY PROMOTER

After obtaining the modified plan sanction, the promoter shall immediately inform the Real Estate Regulatory Authority and obtain sanction from the Real Estate Regulatory Authority to upload the modified plan sanction and update the information of the project in the project account on the website and has to make available such modified plan sanction to all the allottee/s of the project.

Further, it is advised that the promoter shall make available the modified plan sanction along with such specifications in the advertisement, prospectus, brochure, website etc of the real estate project and shall immediately withdraw the earlier sanctioned plan from all such advertisement, prospectus, brochure, website etc after applying for modification of such sanctioned plan.

JUDICIAL PRONOUNCEMENT

In Ferani Hotels Pvt Ltd v. State Information Commissioner Greater Mumbai & Ors, Civil Appeal Nos. 9064 – 9065 of 2018, Supreme Court on 27th September, 2018 ruled that developers has to display the sanction / layout plans at the site and also ruled that this aspect should be given appropriate publicity as part of enforcement of The Real Estate (Regulation and Development) Act, 2016. The direction is made with respect to Section. 11(3)(a) of The Real Estate (Regulation and Development) Act, 2016t to be fully complied with.

(Source: The full judgment is available at https://www.sci.gov.in/supremecourt/2015/38196/38196_2015_Judgement_27-Sep-2018.pdf,last visited on 19th of April, 2019 at 06:12 pm.)

DISCLAIMERS

This post underlines the information as per the applicable provisions of the Real Estate (Regulation and Development) Act, 2016; and

We recommend the Promoters to seek the assistance of the Professionals involved in the real estate practice in case of any queries, clarifications with respect to advertisement of the real estate project.

CONTACT

https://www.reraconsultants.in/advertisement-of-real-estate-project-dos-and-donts.php

ADVERTISEMENT OF REAL ESTATE PROJECT - DO'S AND DONT'S

by Rera Consultants LLP

Authored by Mr. Hitendra V.Hiremath,

presently works as Legal Consultant with RERA Consultants LLP and has earlier worked as In-House Counsel at M/s. Shriram Properties Private Limited and thereafter with an investment banking firm Capaegis at Bengaluru, Karnataka, India

A Real Estate project can be advertised after registration with concerned real estate regulatory authority subject to compliance of the necessary directions as per the provisions of The Real Estate (Regulation and Development) Act, 2016 ("RERA").

The advertisement materials under RERA may includes any materials describing the details of project which is marketed and advertised through the Short Message Service (SMS), e-mails, hoardings, prospectus, brochures, newspaper, leaflet, radio, television, social media platforms, websites and/or any other forms of media.

As per Section.11 (2) of RERA and as per the standard rule of practice of advertisement of real estate projects, it is recommended that the Promoter to adhere to the following guidelines to advertise the real estate project:

● Registration Number of the project must be displayed prominently in the advertisement materials.

● Website address of the Real Estate Regulatory Authority must be included.

● All the pictures with any information in the advertisement materials must be clear and near actual without any false, misleading information.

● Testimonials must be original and genuine.

● The Specifications as promised under the advertisement materials shall form part of Agreement for Sale.

● The information being provided through advertisement materials should not contravene any provisions of the RERA.

● The project website has to updated periodically based on the progress of the development.

● The Disclaimers must be appropriate and should not deny the responsibilities and duties and thereto contravene the provisions of RERA.

Also prior to advertisement and marketing of the project by the Channel Partners and Agents, they should be registered with Real Estate Regulatory Authority and only thereafter they shall be entitled to advertise and market the project following all the guidelines as aforementioned.

Marketing managers, Customer Relationship Managers, Sales Managers and Agents should be aware of the provisions of the RERA.

Further, recently Andhra Pradesh Real Estate Regulatory Authority has issued guidelines for advertisement of real estate project along with Andhra Pradesh Real Estate Regulatory Authority authorized stamp and where it must be shown in the advertisement materials of a real estate project. Please visit the following website of Andhra Pradesh Real Estate Regulatory Authority https://www.rera.ap.gov.in/RERA/Views/AdvertisementGuidelines.aspx for more details and information.

Note that, in case of any veracity in the advertisement materials causing any loss and damage to the allottees / purchasers, then allottees / purchasers shall be compensated and are entitled to withdraw from the project wherein entire amounts has to be refunded with applicable interest and compensation. At such instance, the authority under Section.61 of RERA is also entitled to levy a penalty of upto 5% of the total project cost.

The promoters can adhere to recommended guidelines as aforementioned, these guidelines are as per the provisions of the RERA and as per the standard rule of practice of advertisement. Please note that the concerned Real Estate Regulatory Authorities may come with standard guidelines.

The Promoters must be very diligent while drafting the contents, disclaimers in the advertisement materials and not to make any false representations.

DISCLAIMERS

● This post underlines the information as per the applicable provisions of the Real Estate (Regulation and Development) Act, 2016; and

CONTACT

For any other details, clarifications, assistance, advise and other services, please visit www.reraconsultants.in; or can get in touch with us at 080 - 2223 3003 or email to consult@reraconsultants.in

https://www.reraconsultants.in/penalty-for-violation-of-provisions-under-real-estate-regulation-and-development-act-2016.php

PENALTY FOR VIOLATION OF PROVISIONS UNDER REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

by Hitendra V.Hiremath

The Real Estate (Regulation and Development) Act, 2016 ("Act") was passed by Rajya Sabha on 10th of March, 2016 which received the assent of the President of India on 25th of March, 2016 and was published in gazette on 26th of March, 2016. Out of total 92 sections, Section 2, Section 20 to 39, Section 41 to 58, Section 71 to 78 and Section 81 to 92 came into force on 01st of May, 2016 and Section 3 to 19, Section 40, Section 59 to 70 and Section 79 to 80 came into force on 01st of May, 2017

The objective with which the Act passed was to promote and regulate the real estate sector by creating the Real Estate Regulatory Authority and protect the interest of consumers by creating an Appellate Tribunal. This article underlines in brief the essential information pertaining to the penalties levied for the violation of the provisions under the Act by the Developers/Promoter.

Chapter VIII of Act specifically deals with Offences, Penalties and Adjudication. Following are the penalties that may be levied for violation of the Provisions under Act.

1. For Non-Registration of the Project and advertising, marketing, booking, selling or offering to sell without registration of the Project:

a. If the developer/promoter fails to register their real estate project and thereby also advertises, markets, books, sells or offers to sell the plot, apartment/building thereby violating Section.3 of the Act, then as per Section.59(1) of Act, the developer/promoter shall be liable for penalty which may extend upto 10% (ten percent) of estimated cost of the real estate project.

b. Further, in case if the Developer/Promoter continues to violate the provisions of Section.3 of the Act, the Developer/Promoter shall be punishable with imprisonment as per Section 59(2) of the Act, for a term which may extend upto 3 years or with fine which may extend upto a further 10% (ten percent) of cost of the real estate project or with both.

2. Providing false information while registering the Project: If any Promoter/Developer provides false information while registering the Project or contravenes Section.4 of the Act, then as per Section.60 of the Act, the Promoter/Developer shall be liable to a penalty which may extend upto 5% (five percent) of the estimated cost of real estate project as determined by the Authority.

3. Violation of any other provisions of Act: If the Promoter/Developer is in violation of any other sections of the Act, apart from Section.3 and 4, then as per Section.61 of the Act, the Promoter/Developer shall be liable to a penalty which may extend upto 5% (five percent) of the estimated cost of real estate project as determined by the Authority.

4. Failure to Comply with orders of Authority by Promoter: Failure to comply or in contravention of the orders or directions of Authority, then as per Section.63 of Act, the Promoter/Developer shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to 5% (five percent), of the estimated cost of the real estate project as determined by the Authority.

5. Failure to Comply with orders of Appellate Tribunal by Promoter: Failure to comply or contravention of any of the orders, decisions or directions of Appellate Tribunal, then as per Section.64 of Act, the Promoter/Developer shall be punishable with imprisonment which may extend upto 3 years or with fine liable to a penalty for every day during which such default continues, which may cumulatively extend up to 10% (ten percent), of the estimated cost of the real estate project or with both.

Note that, the penalties as discussed above are exclusive of the provisions under which the authority can direct the Developer/Promoter to pay compensation along with the interest to the Allottees, in complaints filed regarding veracity of advertisement or prospectus, Non-adherence to the sanctioned plans, structural defect, delay in completion and defective title of the land.

DISCLAIMERS

● This post underlines the information as per the applicable provisions of the Real Estate (Regulation and Development) Act, 2016; and

CONTACT

Regards,

Srinidhi Vasan | General Manager | Operations

RERA Consultants LLP

No. 1/1, Ground Floor, Unity Buildings Annexe (Income Tax Building), Bengaluru-560 027.Contact: 080-2223 3003

Mobile: +91 95355 78604 | sales@reraconsultants.in

Website: www.reraconsultants.in

Karnataka | Kerala| Andhra Pradesh | Tamil Nadu | Telangana

Please note, in case of filing of applications for registration of Projects and Agents, Post Registration & Quarterly Updates, we process the same on the basis of documents and information given by the Promoter/s and Agent/s. We do not take any responsibility for the same and/or give any assurance regarding the authenticity of the documents/information and successful registration of the Project/Agent.

DISCLAIMER: The info contained and transmitted by this electronic mail is proprietary to RERA Consultants LLP and is intended for use only by the individual or entity to which it is addressed, and may contain info that is privileged, confidential or exempt from disclosure under applicable law. If this is a forwarded message, the content of this email may not have been sent with the formal approval of RERA Consultants LLP. If you are not the intended recipient, an agent of the intended recipient or a person responsible for delivering the information to the named recipient, you are notified that any use, distribution, disclosure, transmission, printing, copying, or dissemination of this information either whole or partial, in any way, or in any manner is strictly prohibited. If you have received this communication in error, please delete this email immediately & notify RERA Consultants LLP at: accounts@reraconsultants.in

Blog Article

Dear Sir,

Please find attached the blog article to be posted on your website.

Regards,

Srinidhi Vasan | General Manager | Operations

RERA Consultants LLP

No. 1/1, Ground Floor, Unity Buildings Annexe (Income Tax Building), Bengaluru-560 027.Contact: 080-2223 3003

Mobile: +91 95355 78604 | sales@reraconsultants.in

Website: www.reraconsultants.in

Karnataka | Kerala| Andhra Pradesh | Tamil Nadu | Telangana