A GUIDE TO RERA - FLAT PURCHASERS / ALLOTTEES PERSPECTIVE

Complaint under RERA and Representaion of RERA Complaint

1) Does the definition of ‘Promoter’ include public bodies such as Development Authorities and Housing Boards?

Ans: The Act covers all bodies (private and public) which develop real estate projects for sale to the general public. Section 2(zk) of RERA defines the term ‘Promoter’ which includes both private and public real estate promoters. Thus, both Development Authorities and the Housing Boards, when involved in sale are covered under the Act.

2. Does the definition of ‘Promoter’ include all promoters in case of joint development?

Ans: As per the Explanation to section 2(zk) of RERA “where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sells apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder”.

3. Does the term ‘Allottee’ include plot of land? Secondary sales ?

Ans: As per section 2(d) of RERA, an Allottee in relation to a real estate project, includes a person to whom the said ‘apartment / plot/building’ is allotted or who acquires the said ‘apartment/plot/building’ through transfer or sale, but does not include a person to whom such plot, apartment is given on rent.

4. Is ‘open parking areas’ a part of ‘common areas’?

Ans: Section 2(n) of RERA defines ‘common areas’ to include ‘open parking areas’, thus open parking areas cannot be sold to the Allottees.

5. What is the Parking allocation and sale options in RERA? And what are the options for those who have already paid for parking ?

Ans: One can file an RTI if need be, to know complete plans submitted including parking areas showing flat owners parking slots BMC parking / Visitor parking, etc. a) Open Parking Area: This has been clearly included in the definition of "Common Areas" which need to be conveyed to the Association of Allottees after Occupancy Certificate is received. Hence, sale or allotment of Open Parking Areas by the Promoter is not permissible. b) Covered Parking: is permitted to be sold. c) Garage: as defined in the Act is permitted to be sold. ( covered space having roof and walls on 3 sides )

6. How is Carpet Area Measurement for flats which are sold?

Ans: If the Agreement for Sale is executed after RERA came into effect in May 2017 then the Carpet area measurement will be done as per RERA. As per section 2(d) of RERA (k) "carpet area" means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

7. Does advertisement include solicitation by emails and sms? Is issuance of prospectus considered to be a case of ‘advertisement’?

Ans: As per section 2(b) of RERA, which defines ‘advertisement’ any medium adopted in soliciting for sale would be covered under the said definition, including sms and emails.

8. Is it mandatory for the promoter to obtain permissions for the real estate project before applying for registration to MahaRERA?

Ans: Yes. Building Approval for the apartment must be obtained before the Agreement for Sale or Letter of Allotment is signed between the Promoter and Allottee, regarding the said apartment.

9. How will a flat Allottee know, if the real estate project is duly registered under MahaRERA? Ans: The MahaRERA website would provide the details. It is mandatory that the advertisement for marketing of apartments in the real estate project must carry the MahaRERA registration number.

10. Is the Promoter required to give any undertaking to MahaRERA for completing his project within a specified period? Ans: Yes, in accordance with the provisions of the Act, the Promoter( builder), while applying for registration to MahaRERA, has to give a declaration, supported by an affidavit, indicating the time period within which he undertakes to complete the project or phase thereof, as the case may be.

11. If the registration of a real estate project is revoked for any reason, how will the interest of the Allottee, in such project, be protected by MahaRERA?

Ans: MahaRERA will take action in accordance with section 8 of the Act.

12. In case of delay in getting the possession from the Promoter, will the Allottee be entitled to get interest on the amount paid by him, for such delayed period till the possession date?

Ans: Yes. In accordance with the model form of agreement, if the Promoter fails to abide by the time schedule for completing the project and handing over the [Apartment/Plot] to the Allottee ( flat purchaser), the Promoter is required to pay to an Allottee, who does not intend to withdraw from the project, interest as specified in the Rule, on all the amounts paid by the Allottee, for every month of delay, till the handing over of the possession of the flat, which interest rate may vary from 09.80% to 10.25% depending upon then prevailing rate of MCLR plus 2%.

13. What is the rate of interest payable in case of default by the ‘Promoter’ or the ‘Allottee’? Is the rate of interest payable by either party (Promoter or Allottee) the same?

Ans: As per the explanation to Section 2(za) of RERA the rate of interest payable by either the Promoter or the Allottee shall be the same. The rate of interest is required to be specified by the appropriate Government in the Rules.

14. Will such interest payment by the Promoter to the Allottee be automatic or the Allottee will have to approach MahaRERA?

Ans: The interest payment is in accordance with the model form of agreement and hence should be automatically paid. But in reality, the Allottee may have to file a complaint to MahaRERA if there is a grievance regarding non-payment of the said interest for delayed possession of the flat by the Promoter.

15. Are the civil courts and consumer forums barred from entertaining disputes under RERA?

Ans: As per section 79 of RERA, civil courts are barred from entertaining disputes (suits or proceedings) in respect of matters which the Authority or the Adjudicating Officer or the Appellate Tribunal is empowered under the Act to determine. However, the consumer forums (National, State or District) have not been barred from the ambit of the Act. Section 71 proviso permits the complainant to withdraw his complaint as regards matters under Sections 12, 14, 18 and 19 of RERA, from the consumer forum and file it with the Adjudicating Officer appointed under the Act.

16. If the Allottee wants to file a complaint in Consumer Court, is there any bar under RERA? What are the other options other than approaching MahaRERA?

Ans: (i) No. Section 71 proviso permits the complainant to withdraw his complaint as regards matters under Sections 12, 14, 18 and 19 of RERA, from the consumer forum and file it with the Adjudicating Officer appointed under RERA. (ii) One can file proceeding under MOFA or Consumer Court ( may take 3 to 4 years or even more), Civil/Criminal Complaint (takes 4 to 6 years). RERA generally takes 45 days to 60 days to dispose of the complaint at the first stage.

17. What are the provisions for an aggrieved person to lodge a complaint?

Ans: Section 31 of the Act and Rule 6 of Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017 provide for filing of complaint with MahaRERA, by an aggrieved person who has any interest in the registered project.

18. Where will the aggrieved Allottee be required to file his complaint?

Ans: The aggrieved person can file an application online as per format provided by MahaRERA website. The aggrieved person can file an application online as per format provided by MahaRERA. It shall include the following details: - Registration number of the project to which the complaint pertains - Particulars of the complainant and respondent - Facts of the case - Relief Sought - List of Enclosures and so on.

19. What are the stages of enquiry before MahaRERA after filing of complaint?

Ans: The enquiry is conducted in following stages: a. Appearance of parties b. Recording of plea of the Respondent (Developer). If the Respondent pleads guilty then the order will be passed by MahaRERA on merits of the case, if not pleaded guilty by the Respondent then explanation / reply to be filed by the Respondent. c. Leading evidence oral or documentary. d. Final arguments. e.

20. On what grounds can the Allottee file a complaint?

Ans: An aggrieved person may file a complaint with MahaRERA for any violation or contravention of the provisions of the Act or the Rules or Regulations made there under.

21. Does an Allottee have right to agitate before MahaRERA, prior to 1st May 2017 ( date on which RERA came into effect in State of Maharashtra )?

Ans: If the transaction is cancelled by the Allottee who paid earnest money deposit without executing any Agreement for Sale prior to 1st May 2017 ( date on which RERA came into effect in State of Maharashtra ), then the case cannot be brought before MahaRERA, the remedy will be before Consumer Forum or a Civil Suit.

22. Does an Allottee have right to agitate before MahaRERA if he has been issued Letter of Allotment by the Promoter?

Ans: Letter of Allotment constitutes “Agreement for Sale” and accordingly MahaRERA has jurisdiction to entertain matters under RERA Act. 23. In case of Lease executed by a Promoter, is the Allottee entitled to move MahaRERA? Ans: In case of perpetual lease of 999 years MahaRERA has jurisdiction to entertain complaints, since it amounts to absolute sale.

24. Can older disputes concerning the project come under purview of RERA?

Ans: Older disputes could come within the purview of the RERA Act if the alleged violation though starting before the commencement of the RERA Act is a continuing one. Thus, the Authority would entertain complaints against alleged violations occurring prior to the enforcement of this Act if the following conditions are fulfilled: (i) The alleged violation though commencing before the enforcement of the Act, must be a continuing till date (ii) The violation must be in contravention of the act and rules and regulations made thereunder. (iii) It must not be pending before any forum/ court.

25. What is the position for filing complaint for joint owners, companies, trusts etc.? If we have joint owners signing Agreement for Sale, do we require both to file the RERA case and both to be present for hearing?

Ans: Any one signatory of Agreement of Sale will hold good. In case of purchase of flats by organisation of persons proper board resolution/authority for filing complaint with MahaRERA will be needed. Similarly at the time of personal hearing any one signatory of Agreement of Sale will hold good. In case Vakalatnama is filed by the Advocate the presence of the Complainant may not be insisted upon.

26. In absence of date of possession not mentioned in the Agreement for Sale or Letter of Allotment, would application to MahaRERA lie for claiming interest on delayed possession?

Ans: Depending upon facts of each case, such an application can be made to MahaRERA for claiming interest on delayed possession. One can prove the date of possession in the form of correspondence had with the Promoter such as emails, SMS, Whatsapp messages. One may even cite letter written to bank while availing loan for purchase of flat where date of possession is mentioned. If there is registered Agreement for Sale or Allotment Letter for any third party flat purchasers for the same wing same project, the said evidence can be cited to prove the possession date. Any advertisements released by the Promoter where date of possession is mentioned.

27. Can the allottee approach MahaRERA if the Promoter does not honour the mutual compromises in the form of Consent Terms?

Ans: In case the respondent backs out from the mutual compromise, complainant shall be free to approach the Authority without prejudice to the merits of his/her case.

28. Can authority hear the complaints in respect of non -registered projects?

Ans: No, there is no jurisdiction to hear complaints about projects not registered with the authority. However, in such cases one may file a written complaint on sourcedetails@maharera.mahaonline.gov.in for non registration of given project.

29. What is the role of the Adjudicating Officer?

Ans: The Adjudicating Officer is a quasi-judicial person who is mandated to adjudicate on disputes arising under sections 12, 14, 18 and 19 of RERA. The Adjudicating Officer shall be a person who is or has been a District Judge.

30. What are the factors that need to be taken into account by the Adjudicating Officer while deciding a dispute under Sections 12, 14, 18 and 19 of the Act?

Ans: The Adjudicating Officer shall, while deciding the disputes under section 12, 14, 18 and 19 of the Act, have regard to – the amount of disproportionate gain or unfair advantage, the amount of loss, repetitive nature of the default and such other factors that the Adjudicating Officer may consider necessary in furtherance of justice.

31. RERA verdict will arrived in how many days? Can it be challenged by a Promoter?

Ans: It takes generally anywhere between 45 to 60 days to dispose of a complaint. It is happening within 45 days as per our experience. Builder can appeal to Appellate Tribunal followed by High Court challenging the Order passed by MahaRERA.

32. Is there any provision for interim relief to be granted, pending the final adjudication of the complaint?

Ans: The procedure to be followed by MahaRERA while adjudicating a complaint is detailed in section 36 of the Act read with Rule 6(2) of Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017. Interim reliefs can be prayed for.

33. Can a judicial order given for one Allottee can be implemented for all flat owners of building?

Ans: No. The distinction between a judgment ‘in rem’ and a judgment ‘in personam’, is that, in the former, the point adjudicated upon is conclusive against all the world as to status, whereas in the case of a judgment in personam, the point is only conclusive between the parties and their privies. RERA order is generally on individual basis. It cannot be applied to all but can be of persuasive value in other similar cases.

34. Is there appeal provided against the orders given by MahaRERA? Is there a time limit?

Ans: Any person aggrieved by any direction or decision or order made by MahaRERA or by an Adjudicating Officer may file an appeal before the Appellate Tribunal within a period of sixty days from the order of Adjudicating Officer or as the case may be.

35. Is there any precondition before an Appeal can be filed by the Promoter against the order of MahaRERA?

Ans: The promoter is required to deposit at least 30% of the penalty or such higher percentage as may be ordered by Appellate Tribunal otherwise the Appeal filed by the Promoter against the order of MahaRERA is liable to be dismissed.

36. What is the punishment prescribed for non-compliance of the orders of the Authority by the promoter?

Ans: As per section 63 if the promoter fails to comply with the orders of the Authority, he shall be liable to a penalty for every day of default, which may cumulative extend up to five percent of the estimated cost of the real estate project.

37. Can an appeal be filed against the decision or the orders of the Appellate Tribunal?

Ans: Any person aggrieved by the decision or order of the Appellate Tribunal can file and appeal with the High Court.

38. What is the time period within which the Appellate Tribunal is required to dispose of the appeal?

Ans: Section 44 provides that the Appellate Tribunal should endeavour to dispose of the appeal as expeditiously as possible, but not later than sixty days from filing the appeal. However, where the same could not be disposed of during the said period the Appellate Tribunal is required to record its reasons for the same.

39. What is the punishment prescribed for non-compliance of the orders of the Appellate Tribunal by the Promoter?

Ans: As per Section 64 if the Promoter fails to comply with the orders of the Appellate Tribunal, he shall be liable to a penalty for every day of default, which may cumulative extend up to ten percent of the estimated cost of the real estate project or with imprisonment for a term which may extend up to three years or with both.

40. Can judicial order be different for members filing cases on different dates?

Ans: Depends on each case, however cluster approach will help to get similar reliefs.

41. Is the tape recorded conversation admissible as an evidence?

Ans: Shri. B. D. Kapadnis, member and adjudicating officer, MahaRERA, in his order dated 9th May 2018 observed, "The tape recorded conversation is evidence in the electric form and is admissible in any legal proceedings under the provisions of the Indian Evidence Act”. The Bombay High Court has framed rules regarding the permissibility of admitting recorded conversations as evidence.

42. What is the nature of punishment to erred Promoter and when it is imposed?

Ans: a. Non registration of the Project Section 59.
(1) If any promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend up to ten percent of the estimated cost of the real estate project as determined by the Authority.
(2) If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten percent of the estimated cost of the real estate project, or with both. b. Providing false information Section 60. If any promoter provides false information or contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project, as determined by the Authority. c. Failure to comply with orders of the Tribunal Section 64. If any promoter, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to three years or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent of the estimated cost of the real estate project, or with both.

43. Is non-receipt of approval ground for delay of the project?

Ans: Non receipt of environmental clearance or any other approval cannot be the ground for delay of the project as the Promoter having sufficient experience of the project has to have fair assessment of the risk. However in exceptional circumstances the delay can excused.

44. What are the compensation options to the Allottee if he chooses to withdraw from the project ?

Ans: In case one wishes to exit from the project, then in the such cases, the principal amount plus interest thereon from the respective date of payment + VAT + Service Tax + TDS +Stamp Duty + Registration charges + cost of complaint ( generally in the range of Rs.20000) and miscellaneous expenses subject to necessary documentary evidence. For refund of VAT + Service Tax + TDS +Stamp Duty the Builder/Allottee will make necessary application to the concerned authorities. The Registration charges are normally reimbursed by the Promoter to the Allottee.

45. Whether the Promoter can delay/refuse remitting compensation under an Order of RERA? If so what next?

Ans: If a Promoter fails to pay any interest or penalty or compensation imposed on him, by the Adjudicating Officer or the Regulatory Authority or the Appellate Authority, as the case may be, under the Act or the rules and regulations made thereunder, it shall be recoverable from such Promoter as an arrears of land revenue for which one has to make necessary application to the authority which passed an order.

46. For award of compensation, what are the factors taken into consideration?

Ans: For award of compensation to the Allottee several factors needs to be considered, the Adjudicating Officer shall have due regard to the following factors, namely:—
(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
(b) the amount of loss caused as a result of the default;
(c) the repetitive nature of the default;
(d) such other factors which the adjudicating officer considers necessary to the case in furtherance of justice.

47. What are all the components of delay compensation being settled by RERA?

Ans: Interest on delayed possession of flat is normally in range of 09.80% to 10.25% for every month of delay, however the said interest rate may vary from month to month. The said compensation is to be calculated on amounts paid from the respective dates of payments made by the Allottee to the Promoter.

48. Is the Promoter entitled to interest on late payment if there is stop work notice issued by Municipal Authority?

Ans: If there is a stop work notice issued by the Municipal Authorities, the Promoter cannot demand more instalments and on non-payment of the said demand, the Promoter is not entitled to interest for the late payment thereon.

49. After RERA verdict can builder abandon the project and go? What next? Ans: RERA has necessary powers for protecting the Allottee’s interest. 50. Does an Allottee have charge over the flat until refund of full amount in case the Allottee wishes to withdraw from the project?

Ans: If the Authority has accepted the undertaking of the Promoter to refund all the amount within a period of six months from the date of the complaint on completion of the cancellation procedure, then till entire payment is released to the Allottee there shall be charge on the flat in question. Simultaneously, the formalities for cancellation from the Allottee shall commensurate as early as possible.

51. Is the Allottee entitled to exit from the project if there is delay in completion of the work?

Ans: If there is a delay in execution of the project, the Allottee has right to exit from the project and receive amount with reasonable interest including the expenses occasioned for taxes etc.

52. What legal avenues Allottee has if the Promoter delays the possession beyond RERA date?

Ans: Flat Purchaser’s entitlement for interest on delayed possession starts from date stated in Agreement for Sale/Letter of Allotment as the case may be and as such the Promoter is under pressure to complete Project in time or even earlier.

53. Does RERA allow grace period which the Promoter is entitled, if he is not able to give possession by date he has mentioned in the Agreement for Sale/Letter of Allotment.

Ans: Yes. On case to case basis. The Promoter has to justify the reasons under Section 72 of RERA, besides Allottee has to accept the same. But Promoters liability starts once order is passed by RERA on a complaint filed by the Allottee for delayed possession of a flat.

54. Whether handing over possession of flat without occupation certificate is acceptable?

Ans: Merely handing over a flat for completing fit out of furniture, fixtures, electrifications etc. will not amount handing over possession of a flat unless and until regular occupancy certificate is issued by the competent authority to the Promoter.

55. Can the Allottee accept rentals from the Promoter for the delayed possessionof a flat? Ans: Without signing any MOU/Other document it may be okay to accept the rentals. But with MOU/ Other document the Allottee may be tied down by the Promoter and may have to go to Civil Court in case there is any default on the part of the Promoter in making payments for the rentals agreed and there could difficulty to approach RERA in such cases in future. However the facts may differ from case to case. 56. Rentals received by some Allottee by signing MOU how RERA will help?

Ans: The Allottee needs to seek legal advice before signing any MOU/Document. Once such document is signed by the Allottee with the Promoter, the Principle of Estoppel, a bar or impediment (obstruction) which precludes a person from asserting a fact or a right or prevents one from denying a fact will apply.

57. Can the Allottee stop paying future instalments against purchase of flat Ans: No. As per Agreement of Sale, the payments are linked to construction progress and if particular construction has taken place, the Allotttee is required to make the payment.

58. Lost /deficient area, deviations in floor plan other losses how and when to handle legally? Ans: Such issues can be handled at the time of taking possession of the flat when the Allottee can take conditional acceptance of flat with remarks made on possession letter on issues like lost/deficient area, change in floor plan, amenities etc. and take necessary steps against the Allottee for the loss or damages suffered by the Alottee.

59. Can a Promoter make any coercive demand for prepayment of any future liability? Ans: The Promoter cannot make a coercive demand for prepayment of any future liability as the maintenance charges are leviable on a monthly basis.

60. Whether the Allottee should continue to engage in discussions with the Promoter on monthly basis on project progress. Ans: Yes one can go on, as long as it doesn’t harm your interest.

61. Can Allottee file a complaint against Promoter in all cases of non delivery of possession of a flat.

Ans: No. In order to file a complaint against promoter in all cases of non delivery of possession of a flat, the project is first required to be registered with MahaRERA and then only one can file a complaint with MahaRERA for interest on delayed possession of the flat or refund of all amounts paid by the Allottee to the Promoter in case the Allottee wishes to withdraw from the project.

62. If the project is not register with MahaRERA, what are the options available to the Allottee. Ans: The Allottee can first file a written complaint against the promoter on sourcedetail@maharera.mahaonline.gov.in for non registration of the project where upon the MahaRERA will act on the complaint and direct the Promoter to register the project. Once this is done, the Allottee can then file complaint against the Promoter for the required reliefs.

63. If the project is under Subvention Scheme and under construction and the Developer agrees to pay the interest on the loan amount availed by the Allottee to the bank till the possession date, what is the remedy if the Promoter commits default?

Ans: The Allottee can claim compensation from the Promoter for the loss and damage caused to the Allottee due to the wilful breach/default on the part of the Promoter in case of non payment of pre-EMI interest till possession date as per the terms agreed between the Promoter and the Allottee. As per Sections 18(3) & 19(4) of RERA, the Promoter would be liable to compensate the Allottee, if the Promoter fails to discharge any other obligations imposed on him in accordance with the terms of the Agreement for Sale or Letter of Allotment as the case may be.

64. If the Promoter makes unilateral changes in the flat purchased by the Allottee as regard lay out plans, specification, fixtures, fittings, amenities, common areas, etc., without the consent of the Allottee then what is the remedy?

Ans: If Promoter has made unilateral changes as stated above and it has been noticed by the Allottee then in such case the said changes would be violative of Section 14 of RERA, in as much as after the plans are sanctioned by the Competent Authority and disclosed by the Promoter to the Allottee and on the basis of which the Allottee has purchased the flat, the Promoter cannot may unilateral changes as stated above without the previous consent in writing of the Allottee. If the Allottee suffers any damage or loss on account of said changes, the Allottee can claim compensation from the Promoter for the said damage or loss.

65. What kind of information the Promoter is responsible to make available to the Allottee at the time of the booking and issue of allotment letter ? Ans: The Promoter is liable to make available to the Allottee at the time of the booking and issue of allotment letter, the following information:
(a) sanctioned plans, layout plans, along with specifications, approved by the competent authority, by display at the site or such other place as may be specified by the regulations made by the Authority;
(b) the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.

66. What is time limit within which the Promoter is responsible to form the association of Allottees such as cooperative housing society, condominium or section 8 company?

Ans: In the absence of local laws, the association of Allottees, by whatever name called, shall be formed within a period of three months of the majority ( 51%) of Allottees having booked their plot or apartment or building, as the case may be, in the project;

67. Is the Promoter is responsible to provide completion certificate or the occupancy certificate, or both, from the relevant competent authority and to make it available to the individual Allottees?

Ans: Yes the Promoter is responsible to obtain the completion certificate or the occupancy certificate, or both, as applicable, from the relevant competent authority as per local laws or other laws for the time being in force and to make it available to the Allottees individually or to the association of Allottees, as the case may be.

68. Can the Promoter mortgage or create a charge on such apartment, plot or building after the promoter he executes Agreement for Sale with the Allottee?

Ans: After the Promoter executes an Agreement for Sale for any apartment, plot or building, as the case may be, the Promoter cannot mortgage or create a charge on such apartment, plot or building, as the case may be, and if any such mortgage or charge is made or created then notwithstanding anything contained in any other law for the time being in force, it shall not affect the right and interest of the Allottee who has taken or agreed to take such apartment, plot or building, as the case may be.

69. Can the Promoter cancel the allotment made to the Allottee?

Ans: The Promoter may cancel the allotment only in terms of the agreement for sale. Provided that the Allottee may approach the Authority for relief, if he is aggrieved by such cancellation and such cancellation is not in accordance with the terms of the agreement for sale, unilateral and without any sufficient cause.

70. What is the remedy available to an Allottee, for a false statements made by a Promoter on the basis of which the Allottee has booked a flat?

Ans: If an Allottee makes an advance or a deposit on the basis of the information contained in the notice advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the Promoter in the manner as provided under Act. Provided that if the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, or the model apartment, plot or building, as the case may be, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under the Act.

71. At what point in time a Promoter is required to enter an Agreement for Sale with Allottee for the sale of a flat?

Ans: The moment Promoter accepts a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from the Allottee, he has enter into a written agreement for sale with such Allottee and register the said Agreement for Sale, under any law for the time being in force.

72. What is the liability of a Promoter in the case of any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale, after handover of the possession of a flat to the Allottee?

Ans: In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the Allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter's failure to rectify such defects within such time, the aggrieved Allottees shall be entitled to receive appropriate compensation in the manner as provided under RERA.

73. Can Promoter transfer or assign his rights and liabilities in a project to a third party?

Ans: After the enactment of RERA which came into effect in May 2017 promoter cannot transfer or assign his majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-third allottees, and without the prior written approval of the Authority. Such transfer or assignment even if permitted will not affect the allotment or sale of the apartments, plots or buildings as the case may be, in the real estate project made by the erstwhile Promoter.

74. If due to a change in government policy, the promoter is entitled to additional FSI etc., can the promoter build additional floors in a registered ongoing project where initially those floors were not planned?

Ans: Yes, but consent of Allottees would be needed as per Section 14 of the RERA. Disclaimer: The views expressed herein are that of the Author, however the readers are requested to take proper legal advice on case to case basis.