UNIT – V

THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

INTRODUCTION
The real estate sector is an important component of the economy and plays a
catalytic role in meeting the country’s housing and infrastructure needs and demands.
While this sector has grown significantly in recent years, it has been largely under-
regulated with the absence of standardisation and lack of adequate buyer protection.
Though the Consumer Protection Act of 2019 provides a forum for real estate buyers
to address their concerns, the option is only curative and does not adequately address
all the problems of buyers and promoters in that sector. The absence of uniformity has
been a constraint to the healthy and orderly growth of the industry. Therefore, the
need for regulating the sector has been accentuated in various forums.
HISTORY OF REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
The real estate sector was struggling as there were no rigid laws governing the
same. The need of the hour was to appoint a comprehensive regulatory body to
govern the same. The 2009 conference of National Housing Development and
Municipal Administration Ministers discussed affordable housing for all including
land-use policies, financial strengthening of local public bodies and a road map for
hovel free cities. To address the issues of land valuation system and urban
development regulation, the discussion also included the creation of a draft Real
Estate bill by the Ministry of Housing and Urban Poverty Alleviation. In July 2011, the
Ministry of Law and Justice suggested that the legislation is part of the concurrent list
of the Indian Constitution. Later, on 14 August 2013, the Real Estate (Regulation and
Development) Bill was introduced in Rajya Sabha. The Union Cabinet approved
twenty substantial Amendments to the bill in December 2015, based on Rajya Sabha
Committee recommendations. The law was then passed by the Rajya Sabha on March
10, 2016, and the Lok Sabha on March 15, 2016. The Parliament enacted the Real Estate
(Regulation and Development) Act, 2016, herein referred to as the RERA Act, which
aims to protect the rights and interests of consumers by minimising the malpractices
done by the developers and promoting uniformity business practices and transactions
in the real estate sector. The RERA Act came into effect on and from 1 May, 2016. At
the time of passing of the Act, only 69 out of 90 Sections were notified and all other
provisions were effective on and from 1 May 2017. On 31st October 2016, the centre,
through the Housing & Urban Poverty Alleviation Ministry, released the general rules
of the Real Estate (Regulation and Development) Act, 2016. The Act was legislated
under entry 6 and entry 7 of the concurrent list of the Indian Constitution.
SCOPE AND APPLICABILITY OF THE REAL ESTATE (REGULATION AND
DEVELOPMENT) ACT, 2016
The Real Estate (Regulation and Development) Act 2016, hereinbelow referred
to as the ‘Act’ applies to the whole of India except Jammu and Kashmir. Provisions of
the RERA Act apply to residential apartments, buildings and plots whether residential
or commercial. The Real Estate Project defined in the Act includes the development of
buildings consisting of apartments, converting existing buildings into apartments and
developing land into plots for the sale of all or some of the said apartments to carry
out the purpose of this Act. Under RERA Act, it is mandatory to register all projects
of more than five hundred square metres. The main aspects covered by the RERA Act
include all project-related information, contract documents for buying and selling
properties, carpet area stipulation, limitation of an advance fee to ten per cent of the
apartment a deposit of seventy per cent of the money collected from the buyers in the
escrow account, timely completion of the project and penal provisions. Hence, it is
imperative to note that the RERA Act is one such comprehensive Act which covers all
the projects mentioned above irrespective of whether it is commercial or residential.
NEED FOR REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
1. To control and regulate the real estate sectors by shutting out malpractices;
2. To keep consumers out of perils such as delayed delivery, transfer of title of the
property, the quality of amenities provided and necessary changes to be made
etc., before purchase;
3. To appoint authorities to manage the real estate sector and to establish an
Appellate Tribunal for each State. To enable home buyers to file complaints in
case of any wrongdoing committed by the builders or developers;
4. To contribute a good percentage to India’s GDP;
5. To create accountability and responsibility for the authorities so appointed;
6. To tighten the security on the use of investments done by the home buyers or
investors;
7. To have a supreme authorisation on the registration for the projects required to
be registered; and
8. To maintain quality in delivering the project to the buyers as per their interest
and give scope for complaints to the authorities in case of any structural
defects.
IMPORTANCE OF REAL ESTATE (REGULATION AND DEVELOPMENT) ACT,
2016
Real estate’s working was previously unregulated. The enforcement of RERA
intends to protect the buyers or investors and in turn boost their confidence. It requires
transparency and authority to keep track of its functioning approach. In reality, it now
serves as a spotless ground for buyers as well as reducing the risk of those buyers or
investors who bought or invested in the real estate before the implementation of the
Act. The Act clarifies the relationship between property buyers and developers. It lays
down the process of establishing trust between suppliers and purchasers. It has even
created a state agency to oversee real estate and business transactions. The RERA Act
is now assisting home buyers in receiving their real estate projects on schedule which
is a huge comfort for Indian homebuyers.
SALIENT FEATURES OF REAL ESTATE (REGULATION AND DEVELOPMENT)
ACT, 2016
1. To regulate and promote the real estate sector by establishing the Real Estate
Regulatory Authority.
2. To carry out the sale of plots, buildings or apartments as the case may be, or
the sale of all the real estate projects transparently and efficiently.
3. To protect the interests of the consumers and buyers and ensure the prevention
of malpractices against them.
4. To establish adequate and speedy dispute redressal systems and also establish
Appellate Tribunals to hear and adjudge appeals from the orders, directions or
decisions of the Real Estate Regulatory Authority.
5. Establishes state-level regulatory authorities called RERA.
6. To work on residential real estate projects and register all the projects that are
to be undertaken without which the promoters cannot promote or sell.
7. To cast duties on the promoters to upload details of the project on the website
including layout and site plans.
8. To ensure that two-thirds of the allottees give their written consent in addition
to RERA’s written approval when a promoter has to transfer or assign a
majority of the rights and responsibilities in a real estate project to a third party.
9. To ensure that the buyer or promoter, as the case may be, pays an equal sum in
the event of any default.
10. Where the promoter causes the buyer any loss as a result of other people
claiming property (defective title of property) that has been built or is being
built, the promoter shall be liable to pay compensation to the buyer.
11. To ensure that the money collected from project buyers must be kept in a
separate bank account and utilised solely for the construction of the project.
This sum is subject to change by the State Government.
12. The Act provides the right to legal representation on behalf of the client by a
CA, CS or CMA or legal practitioners
13. It imposes a stringent penalty on promoters, and real estate agents and also
prescribes imprisonment.
AN OVERVIEW OF THE REAL ESTATE (REGULATION AND DEVELOPMENT)
ACT, 2016
1. STATE-LEVEL REGULATORY AUTHORITIES (SECTION 20) – Real Estate
Regulatory Authority (RERA): The Real Estate Regulatory Authority (RERA) is
established at the state level. The Act allows state governments to create
multiple regulatory authorities, each with the following mandate:
o Register and maintain a database of real estate developments and make
it available for public inspection on the company’s website;
o Protection of interests of promoters, real estate agents, and buyers;
 o A housing development that is both sustainable and affordable; and

o Provide advice to the government and ensure adherence to the Act and
its regulations.

2. REAL ESTATE APPELLATE TRIBUNAL (SECTION 43) – The decision of the

Real Estate Regulatory Authorities can be appealed to the tribunals established
for each state under the Act including its composition, application for
settlement of the dispute, qualifications for chairperson and members, powers
of tribunal and vacancies of the Appellate Tribunal.

3. MANDATORY REGISTRATION (SECTION 3) – Regulatory Authorities

require all projects with a plot size of at least 500 square metres or eight flats to
be registered.

4. DEPOSITS – Placing 70% of the monies accumulated from the buyer shall be
deposited in a separate escrow account dedicated solely for the construction of
that project.

5. PENAL INTEREST ON DEFAULT (SECTION 61) – Both the promoter and

the buyer are responsible to pay an equal rate of interest in the event of either
party’s default.

6. CEILING ON ADVANCE PAYMENTS (SECTION 13) – Without initially

entering into a sale agreement, a promoter cannot receive more than 10% of the
cost of the plot, apartment, or building as an advance payment or an
application fee from a person.

7. PUNISHMENT (SECTION 66) – For violations of orders of Appellate

Tribunals and Regulatory Authorities, developers can face up to three years in
prison while agents and buyers can face up to one year in prison or a fine for
every day during which the default continues, which may extend cumulatively
extend up to ten per cent of the estimated cost of the plot, apartment or building
of the real estate project.
IMPORTANT DEFINITIONS UNDER (SECTION 2)
1. APPROPRIATE GOVERNMENT [SECTION 2(g)] – “Appropriate
government” means in respect of matters relating to, —

o the Union territory without Legislature, the Central Government,

o the Union Territory of Puducherry, the Union territory Government,
o the Union Territory of Delhi, the Central Ministry of Urban
Development, and
o the State, the State Government.

2. APPELLATE TRIBUNAL [SECTION 2(f)] – “Appellate Tribunal” means the

Real Estate Appellate Tribunal established under Section 43.
3. PERSON [SECTION 2(zg)] – “Person” includes, —

o an individual,
o a Hindu undivided family,
o a company,
o a firm under The Indian Partnership Act, 1932 or The Limited Liability
Partnership Act, 2008, as the case may be,
o a competent authority,
o an association of persons or a body of individuals whether incorporated
or not,
o a co-operative society registered under any law relating to co-operative
societies, and
o any such other entity as the appropriate Government may, by
notification, specify on this behalf.

4. PLANNING AREA [SECTION 2(zh)] – “Planning area” means a planning

area or a development area or a local planning area or a regional development
plan area, by whatever name called, or any other area specified as such by the
appropriate government or any competent authority and includes any area
designated by the appropriate government or the competent authority to be a
planning area for future the planned development, under the law relating to
town and country planning for the time being in force and as revised from time
to time.

5. PROMOTER [SECTION 2(zk)] – “promoter” means, —

o a person who constructs or causes to be constructed an independent

building or a building consisting of apartments, or converts an existing
building or a part thereof into apartments, for the purpose of selling all
or some of the apartments to other persons and includes his assignees,
or
o a person who develops land into a project, whether or not the person
also constructs structures on any of the plots, to sell to other persons all
or some of the plots in the said project, whether with or without
structures thereon, or
o any development authority or any other public body in respect of
allottees of—
1. buildings or apartments, as the case may be, constructed by such
authority or body on lands owned by them or placed at their
disposal by the government, or
2. plots owned by such authority or body or placed at their disposal
by the government, for the purpose of selling all or some of the
apartments or plots, or
 3. an apex state level co-operative housing finance society and a
primary co-operative housing society which constructs
apartments or buildings for its members or in respect of the
allottees of such apartments or buildings, or
4. any other person who acts as a builder, coloniser, contractor,
developer, estate developer or by any other name or claims to be
acting as the holder of a power of attorney from the owner of the
land on which the building or apartment is constructed or plot is
developed for sale, or
5. such other person who constructs any building or apartment for
sale to the general public.

6. REAL ESTATE AGENT [SECTION 2(zm)] – “real estate agent” means any
person, who negotiates or acts on behalf of one person in a transaction of
transfer of his plot, apartment or building, as the case may be, in a real estate
project, by way of sale, with another person or transfer of a plot, apartment or
building, as the case may be, of any other person to him and receives
remuneration or fees or any other charges for his services whether as a
commission or otherwise and includes a person who introduces, through any
medium, prospective buyers and sellers to each other for negotiation for sale
or purchase of plot, apartment or building, as the case may be, and includes
property dealers, brokers, middlemen by whatever name called.
RESPONSIBILITIES OF THE APPROPRIATE GOVERNMENT
1. Notify the rules for the implementation of this Act, within six months of
commencement of this Act
2. Establish the Real Estate Regulatory Authority, within one year of
commencement of this Act, i.e., latest by 30th April 2017.
3. Shall depute an officer, preferably, a housing secretary as an interim regulatory
Authority
4. Establish the Appellate Tribunals within one year from its commencement, i.e.,
maximum by 30th April 2017.
5. Identify an existing Appellate Tribunal for the time being established under
any other law in force, as the Appellate Tribunal until a full-time Appellate
Tribunal is established.
6. Appoint members of the Appellate Tribunal and the Chairperson and members
of the Regulatory Authority based on the suggestions and recommendations of
the Selection Committee.
7. Appoint employees and other officers of the Regulatory Authority and the
Appellate Tribunal.
8. Identify and establish office space and other infrastructure for its functioning.
9. To constitute the Real Estate Regulatory Fund, 2017.
10. The Central Government is required to establish the Central Advisory Council.
PROJECTS EXEMPT FROM THE AMBIT OF THE REAL ESTATE (REGULATION
AND DEVELOPMENT) ACT, 2016
The following projects do not require to be registered under the Act when:

1. the area of land does not exceed 500 sq. metres;

2. the number of apartments does not exceed eight.
3. In the case of renovation or repair or re-development:
4. where the area of land proposed to be developed does not exceed 500 square
metres or the number of apartments proposed to be developed does not exceed
eight, inclusive of all phases;
5. where the promoter has received a completion certificate for a real estate
project before commencement of this Act;
6. For renovation or repair or re-development which does not involve marketing,
advertising, selling or new allotment of any apartment, plot or building, as the
case may be, under the real estate project.
APPLICATION FOR REGISTRATION OF REAL ESTATE PROJECT (SECTION 4)
Every promoter must submit an application to the Authority for registration of
the real estate project in the form, manner, and time stipulated by the regulation of the
Authority along with the fee specified by the Authority.

STEP 1: An application has to be filed along with the fee and other documents in the
prescribed form for registration with RERA by the applicants.

STEP 2: The approval or rejection of the application for registration shall be done
within thirty days from the date of receiving the application by the Authority.

STEP 3: The promoter of the project shall be provided with a registration number,
user ID for login and password for the applicant on successful registration.
GRANTING OF REGISTRATION BY THE AUTHORITY (SECTION 5)
1. The authority, shall within thirty days from the date of receipt of the
application –
2. Grant registration of the real estate project subject to the provisions of the Act
and issue the applicant a registration number, as well as a Login Id and
password, to enable him to access the website of the Authority and create his
web page to fill in the details of the proposed project; or
3. Reject the registration by rejecting the application if it does not conform to the
provisions of the Act and record reasons in writing.

Provided applications cannot be rejected without giving an opportunity of

being heard to the applicant.

4. As per sub-section (1), if the authority does not register the project within thirty
days, then the project is deemed to be registered and the promoter shall be
 given the user ID for login and password for accessing the RERA website and
to create his website for uploading the details of the proposed project.
5. The registration so granted under this section is valid for the time specified by
the promoter in section 4 under sub-clause (c) for the completion of the project.
EXTENSION OF REGISTRATION (SECTION 6)
1. There has been a major delay in handing over the project to the buyers by the
developers. The Act was promulgated to avoid such delays. Hence, the
developer, at the time of registration should specify a timeline during which
the project will be handed over to the buyer.
2. The specification of the timeline is very important because if the project is not
handed over within the said time, it may be usurped by the regulator and be
revoked.
3. Under this Section, the discretion solely lies with the regulator to grant an
extension of registration.
4. The regulatory authority may take into account the force majeure conditions or
any reasonable circumstance to merit the extension.
5. The promoter shall make an application detailing the force majeure or the
reasonable circumstances which resulted in the delay in such form and by
paying the prescribed fee as the regulatory Authority may specify from time to
time.
REVOCATION OF REGISTRATION (SECTION 7)
The Authority may revoke the registration granted under Section 5 after being
satisfied that –

• the promoter fails to do anything required by or under this Act or the rules or
regulations made thereunder,
• the promoter violates any of the terms or conditions of the competent
authority’s approval,
• the promoter is involved in any unfair practices or irregularities.

THE AUTHORITY, UPON THE REVOCATION OF THE REGISTRATION –

Debar the promoter and his access to the website with regard to the project he
undertook and put his name under the list of defaulters and display his photograph
on the website. He shall also inform the other Real Estate Authorities in other States
and Union Territories about the revocation so made.
LAPSE ON THE REVOCATION OF REGISTRATION (SECTION 8)
When a registration expires or is revoked under this Act, the Authority may
consult with the appropriate government to take whatever action it deems
appropriate, including completing the remaining development works by a competent
authority or an association of allottees, as determined by the Authority. As per the
provisions of the Act, the orders, decisions or directions given by the Authority shall
not take effect until the period of appeal expires. Where the project is revoked under
this Act, the association of allottees will have a preferential right of refusal for
proceeding with the remaining development works.
REGISTRATION OF REAL ESTATE AGENTS (SECTION 9)
Real estate broking is one of the easiest businesses in India as there are no
specific qualifications or experience requirements. Before the onset of RERA, there
was no code of practice that set accountability, transparency and professional
benchmarks. As we see, in many parts of the country, many non-professional agents
or brokers operate without a sense of accountability. Thus, the RERA Act also covers
agents who have to mandatorily register under Section 9, without which a real estate
agent or broker cannot facilitate the sale or purchase of any building, plot, or
apartment as part of a registered real estate project sold by the promoter in any of the
planning areas. Every real estate agent willing to act as one shall apply to the
Authority within a prescribed time and in such form and such fee as to be prescribed.
The Authority, once satisfied that the provisions of the Act in relation to the agent’s
registration shall –

1. provide the real estate agent with a single registration number,

2. reject the application in case it does not conform with the provisions of the Act
or the rules thereunder with reasons recorded in writing.

Provided that no application shall be denied until the applicant has been allowed to
be heard on the issue. The applicant shall be given a reasonable opportunity of being
heard in the matter, without which the application cannot be rejected.
PROMOTER (SECTION 12)
NO DEPOSIT OR ADVANCE IS TO BE TAKEN BY THE PROMOTER WITHOUT
FIRST ENTERING INTO THE AGREEMENT FOR SALE (SECTION 13) – A
promoter may not accept an advance payment or application fee from a person over
ten per cent of the cost of the apartment, plot, or building without first entering into
an agreement for sale and registering it.

STRUCTURAL DEFECT – In case of any structural defect, workmanship defect,

quality of delivery, or any provision related to service, or any duty of the promoter,
as the case may be, under the agreement for the sale relating to such development,
must be brought to the notice of the promoter within five years of the date of handing
over possession by the allottee. The promoter is required to rectify such deficiencies
without charge within thirty days and in the event of the promoter failing to do so
within that period, the aggrieved allottees are entitled to receive suitable
compensation in the manner stipulated under the Act.
OBLIGATIONS OF THE PROMOTER IN CASE OF TRANSFER OF A REAL
ESTATE PROJECT TO A THIRD PARTY (SECTION 15) – The promoter may not
transfer or assign his majority rights and liabilities in a real estate project to a third
party without the prior written consent of two-thirds of allottees, excluding the
promoter, and without the Authority’s prior written approval: Provided that such
transfer or assignment shall not affect the erstwhile promoter’s allotment or sale of
apartments, plots, or buildings in the real estate project.
OBLIGATIONS OF PROMOTER REGARDING THE INSURANCE OF REAL
ESTATE PROJECT (SECTION 16) – The promoter shall secure all insurances that
may be required by the competent government, including but not limited to insurance
in respect of –

• Title to the land and buildings that are part of the real estate project; and
• Real estate project construction.

TRANSFER OF TITLE (SECTION 17) – In a real estate project, the promoter shall
execute a registered conveyance deed in favour of the allottee and hand over the
physical possession of the plot, apartment, or building, as the case may be, to the
allottees, as well as the undivided proportionate title in the common areas to the
association of the allottees or the competent authority, as the case may be and hand
over the common areas to the association of the allottees or the competent authority.
The promoter is bound to comply with the direction of the competent authority, as the
case may be, under this provision within three months from the date of issuance of
the occupation certificate.

After obtaining the said occupation certificate and transferring physical

possession to the allottees, the promoter is entrusted with the duty to hand over the
necessary plans and documents including common areas to the allottees’ association
or the competent authority as applicable in accordance with the local laws. Where
there are no local laws in place, the promoter shall, within thirty days of receiving the
completion certificate, hand over all essential documentation and plans including
common areas, to the allottees’ association or the appropriate government, as the case
may be.
RETURN OF AMOUNT AND COMPENSATION (SECTION 18)
If the promoter fails to complete or is unable to give possession of an apartment,
plot, or building:

1. In accordance with the terms of the agreement for sale or by the date specified
therein; and
2. Due to discontinuance of his business as a developer due to suspension or
revocation of the registration under this Act or for any other reason, he shall be
liable on demand to the allottees, in case the allottee wishes to withdraw.

He shall be liable to the allottees on-demand, without prejudice to any other

remedy available, to refund the amount received by him in respect of that plot,
apartment, building or structure, as the case may be, with interest at such rates and
compensation as may be prescribed under this Act.
ESTABLISHMENT AND INCORPORATION OF REAL ESTATE REGULATORY
AUTHORITY (SECTION 20)
Within one year of the date of enactment of this Act, the competent government
shall, by notification, create a body to be known as the Real Estate Regulatory
Authority to exercise the authorities conferred on it and perform the responsibilities
assigned to it under this Act.

Provided that the appropriate government of two or more states or union

territories may, if it so chooses, establish a single authority, provided the relevant
government may, if it so desires, establish multiple authorities in a state or union
territory:

Provided that until a regulatory authority is established under this Section, the
competent government may by order nominate any regulatory authority or any
officers, preferably the Secretary of the department dealing with housing as the
regulatory authority to discharge the functions under the Act.
TERM OF OFFICE OF THE CHAIRPERSON AND MEMBERS (SECTION 23)
The Chairperson and Members shall serve for a term of five years from the date
of their appointment or until they reach the age of sixty-five years, whichever is earlier
and shall not be eligible for re-appointment. Before selecting anybody as a
Chairperson or member, the competent government must be satisfied that the person
has no financial or other interests that might jeopardise his or her duties as a member.
REMOVAL OF THE CHAIRPERSON AND MEMBERS FROM OFFICE IN
CERTAIN CIRCUMSTANCES (SECTION 26)
1. In accordance with the notified procedure under this Act, the appropriate
government shall remove the Chairperson or other members from office if
either of them –

1. has been declared adjudged insolvent,

2. has been convicted of an offence involving moral turpitude, or
3. has become incapable, either physically or mentally to act as a member,
or
4. has got any financial or other interest which may prejudice exercising
his power as Chairman or other members.

2. The Chairperson or member shall not be removed from office for the reasons
specified in clauses (d) or (e) of sub-section (1) unless the appropriate
government orders it following an inquiry conducted by a High Court Judge
in which the Chairperson or member has been informed of the charges against
him and has been given a reasonable opportunity to be heard on those charges.
POWERS OF THE REGULATORY AUTHORITY
1. POWER TO ISSUE INTERIM ORDERS – SECTION 36 of the Act says when
the Authority is satisfied that an act in violation of this Act or the rules and
regulations thereunder has been, is being, or 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 the inquiry or until further
orders, without giving such party notice, if the Authority deems it necessary.

2. POWER TO ISSUE DIRECTIONS – SECTION 37 of the Act says the

Authority may provide such instructions to the promoters, allottees, or real
estate agents, as the case may be, as it deems necessary to carry out its powers
under the provisions of this Act or rules or regulations adopted thereunder and
such directions shall be binding on all parties concerned.

3. POWER TO RECTIFY THE ORDERS – SECTION 39 of the Act says the

Authority may alter any order passed by it at any time within two years of the
date of making of the under this Act, in order to correct any mistake obvious
from the record and shall make such amendment if the mistake is brought to
his notice by the parties. Provided, no such alteration shall be made in respect
of any order to which an appeal under this Act has been filed. Furthermore, the
Authority shall not change any substantive portion of its order issued under
the provisions of this Act while correcting any mistakes obvious from the
record.
Responsibilities of the Regulatory Authority
1. To facilitate registering the real estate project and real estate agents.
2. To extend the registration of the real estate or project and its revocation.
3. To renew or revoke, as the case may be, the registration of the real estate agent.
4. To maintain a website of records for public reviewing.
5. To appoint more than one adjudicating officer for addressing the issues relating
to real estate matters.
6. To notify rules and regulations.
7. To recommend for any growth and promotion of healthy and transparent
functioning of the project.
ESTABLISHMENT OF CENTRAL ADVISORY COUNCIL (SECTION 41)
The Central Government may establish a Council to be called as the Central
Advisory Council by notification, with effect from the date specified in the
notification. The ex-officio Chairperson of the Central Advisory Council shall be the
Minister of Government of India in charge of the Ministry of the Central Government
dealing with housing. It shall consist of representatives from the Ministry of Finance,
Ministry of Industry and Commerce, Ministry of Urban Development, Ministry of
Consumer Affairs, Ministry of Corporate Affairs, Ministry of Law and Justice, Niti
Aayog, National Housing Bank, Housing and Urban Development Corporation, five
representatives from State Governments to be selected by rotation and five
representatives from Real Estate Regulatory Authorities to be selected by rotation.
FUNCTIONS OF CENTRAL ADVISORY COUNCIL (SECTION 42)
The Central Advisory Council is purely an advisory organisation with no
administrative duties. It has no duty or power to recommend how the Act has to be
implemented. As a result, the council’s main objectives are as follows:

• All matters relating to the implementation of this Act.

• The policy of the government to be followed for encouraging the Act.
• How can this Act advance consumer interests and how can the Act help
support real estate expansion and other things that have been entrusted to the
Central Government.
• To examine its proposals and create rules to implement them.
ANALYSIS OF THE EFFECTIVENESS OF THE COUNCIL
The Central Advisory Council is in charge of predicting and improving the
RERA’s implementation efficiency. More importantly, the council must endeavour to
improve the real estate sector as it is a significant contributor to the country’s GDP.
While the goal has been stated, the following areas must be thoroughly investigated
for this council to make a significant change.

KEEPING UP THE FEDERAL SPIRIT – To maximise the efficacy of this Council, it

is necessary to have representation from all of the states to avoid leaving any area
unrepresented. Currently, the Council is made up of five states that are chosen on a
rotational basis. This denies the rest of the states the ability to express their views. The
representation should include not just those states that are now doing well in the real
estate business, but also those that are not doing so well but have the potential to do
so. As a result, state representations should be increased to at least ten to fifteen states.

REPRESENTATION OF ENVIRONMENTAL CONCERNS – Consumer interests

are not restricted to money in real estate, thus environmental issues should be strongly
represented on the CAC. Consumers are also interested in environmentally
sustainable models, which should be adopted by real estate developers. The CAC may
assist in promoting excellent practices in real estate developments, which will
motivate promoters to go green and adopt green alternatives while executing such
projects. As a result, both the promoters and the consumers will profit from it.

REGULARISE INTERACTIONS – The RERA meetings must be held on a more

regular basis to avoid the RERA becoming a “paper tiger.” This will also keep the
RERA from becoming more diluted. The most recent meeting took place on May 18,
2018. As a result, laws must be enacted to make the meetings mandatory at least once
a year. Regular interaction is required for representations to work.
THE REAL ESTATE APPELLATE TRIBUNAL
Real Estate Appellate Tribunal is formed by the Appropriate Government
under Chapter VII of the Real Estate (Regulation and Development) Act, 2016 to
ensure faster resolution of disputes. Parties aggrieved by the RERA order can appeal
before the Real Estate Appellate Tribunal and it has to adjudicate such cases within
sixty days. Civil Courts have been prevented from exercising jurisdiction on such
matters. If any of the parties is not satisfied with the Real Estate Appellate Tribunal
order they can file an appeal against the order of the Real Estate Appellate Tribunal
order to the High Court within sixty days.
ESTABLISHMENT OF REAL ESTATE APPELLATE TRIBUNAL (SECTION 43)
The appropriate government, shall within one year of commencement of this
Act, by notification, establish a Real Estate Appellate Tribunal. There shall be one or
more benches of the Appellate Tribunal, for various jurisdictions in the state or union
territories, if the appropriate government deems necessary. Every bench of the
Appellate Tribunal shall consist of at least one Judicial Member and one
Administrative or Technical Member.

The Act also allows for the establishment of a single appellate tribunal for two
or more states or union territories. The designated tribunal may hear cases until such
a tribunal is constituted and once the tribunal is constituted, all the existing cases will
be transferred to the newly established common Tribunal. If the appropriate
government of two or more states or union territories deems it necessary, may
establish a single Appellate Tribunal.

It may be noted that when a promoter files an appeal with the Appellate
Tribunal, it shall not be entertained, without the promoter first having deposited with
the Appellate Tribunal at least thirty per cent of the penalty or such higher percentage
as may be determined by the Appellate Tribunal or the total amount to be paid to the
allottee including interest and compensation imposed on him or with both, as the case
may be before the said appeal is heard.
APPLICATION FOR SETTLEMENT OF DISPUTES AND APPEALS TO
APPELLATE TRIBUNAL (SECTION 44)
Section 44 of the Act deals with applications for settlement of disputes and
appeals to the Appellate Tribunal. It provides that:

1. The appropriate government or competent authority or any individual

aggrieved by the Authority’s or adjudicating officer’s direction, order, or
judgement, may appeal to the Appellate Tribunal.
2. Every appeal under sub-section (1) must be filed within sixty days from the
date on which the appropriate government, the competent authority, or the
aggrieved person receives a copy of the Authority’s or the adjudicating officer’s
 direction, order or decision and it must be filed in such form and with such fee
as may be prescribed.

Provided that the Appellate Tribunal may hear any appeal after sixty days term has
expired if it is satisfied that there was a sufficient reason for not filing it earlier.

3. The Appellate Tribunal may pass such orders, including temporary orders as
it may deem fit after receiving an appeal under subsection (1) and after
providing the parties with an opportunity to be heard.
4. The Appellate Tribunal must submit a copy of every order it makes to the
parties as well as the Authority or adjudicating officer.
5. It shall deal with the appeal preferred under sub-section (1) expeditiously and
dispose of the appeal within sixty days of the date of receipt of the appeal.

Provided that if any such appeal is not resolved within sixty days the Appellate
Tribunal shall record its reasons in writing for not disposing of the appeal within that
period.
QUALIFICATIONS FOR APPOINTMENT OF THE CHAIRPERSON AND
MEMBERS (SECTION 46)
1. No person shall be qualified to be appointed as a Chairperson or member
unless he –
1. Has been or is a Judge of High Court;
2. In case if he is a judicial member, he has served in the judicial office
within the territory of India for at least fifteen years or has been a
member of Legal Services of India and has held the post of Additional
Secretary of that service or any equivalent post, or has been an advocate
having at least twenty-years’ experience with advocating real estate
matters; and
3. In the case of a Technical or Administrative Member, he is a person who
is well-versed in the areas of law, planning, commerce, accountancy, real
estate, development, economics, infrastructure, public affairs, industry
management or administration or a state government equivalent to the
post of Additional Secretary to the Government of India or an equivalent
post in the Central Government;
2. The appropriate government shall appoint the Chairman of the Tribunal after
consulting with the Chief Justice of the High Court or his nominee;
3. The Appropriate Government shall nominate the judicial members and
technical or administrative members of the Appellate Tribunal on the
suggestions and recommendations of the Selection Committee which consists
of the Chief Justice of the High Court or his nominee, the secretary of the
housing department and the secretary of law as prescribed.
TERM OF OFFICE OF THE CHAIRPERSON AND MEMBERS (SECTION 47)
The Chairperson of the Appellate Tribunal or a Member of the Appellate
Tribunal shall serve for a term of not more than five years from the date of his
appointment, but shall not be eligible for reappointment. Provided that if a person
who is or has been a High Court Judge is appointed as Chairperson of the Tribunal,
he shall not hold office after he has attained the age of 67 years: Furthermore, no
Judicial member, technical member or administrative member shall hold office once
he has reached the age of sixty-five. Before choosing anybody as Chairperson or
Member, the competent government must ensure that the person does not have any
criminal convictions or financial or other interests that may prejudicially affect his
functions.
POWERS OF THE APPELLATE TRIBUNAL (SECTION 53)
The Tribunal is not bound by the Code of Civil Procedure of 1908 or the Indian
Evidence Act of 1872, which impose strict procedures. It shall be guided by the
principle of natural justice and also has the authority to regulate its own procedures.
However, the Chairperson has administrative powers under the Act as he has been
provided with powers of general superintendence and direction during the time of
their conduct in the affairs of the tribunal and all the orders passed by the tribunal are
to be executed as a decree of a Civil Court. The powers of the civil court are entrusted
to the Tribunal which includes the following –

1. Summoning and enforcing the attendance of any person and examining him
on oath;
2. Requiring the discovery and production of documents;
3. Receiving evidence on affidavit;
4. Issuing commissions for the examination of witnesses or documents;
5. Reviewing its decisions;
6. Dismissing an application for default or deciding it ex-parte, setting aside any
order of dismissal of any application for default or any order passed by it ex-
parte; and
7. Any other matters as the Authority may specify by regulations.
ROLE OF HIGH COURTS (SECTION 58)
All appeals from the Appellate Tribunal are heard by the High Court of the
respective states. This must be done within sixty days from the date of decision or
order on any of the grounds set out in Section 10 of the Code of Civil Procedure, 1908.
In such instances, there is no right of appeal if the decision has been reached with the
parties’ consent.
POWER TO MAKE REGULATIONS (SECTION 85)
1. The Authority shall, by notification, enact regulations consistent with this Act
to carry out the purposes of this Act within three months of its establishment,
by notification.
2. Without prejudicing the generality of the foregoing power, such regulations
may provide for all or any of the following:
1. The form and manner of making an application and the fee payable
therewith under Section 4(1);
2. The form of application and the fees for extension of registration;
3. Documents required under Section 11(1)(f) of the Act;
4. Exhibition of layout plans and sanctioned plans along with
specifications, approved by the competent authority under Section
11(3)(a) of the Act;
5. Preparation and maintenance of other such details under Section 11(6);
6. Time, places, and procedure for transaction of business in the meetings
of the Authority under Section 29(1);
7. The form and manner along with the fee payable for filing a complaint
under Section 31(2) of the Act;
8. Standard fee to be levied on the promoter, the allottees or the real estate
agent under Section 34(e); and
9. Such other matters which are required to be specified by regulation.
PENAL PROVISIONS UNDER RERA
PROMOTERS –

A promoter shall be punishable with three years of

Violation of the
imprisonment or a fine of ten per cent of the cost of the
provisions of law
building.
Non-registration of a A promoter shall be punishable with a fine of ten per cent
project of the estimated cost of the building or the project.
Shall be punishable with a fine of 5 per cent of the cost of
False information
the building or the project.

AGENTS – X

The agents shall be punishable with a fine which may

Failure to comply with
extend up to five per cent of the cost of the building and
Authority’s directions
daily during which the offence continues.
An agent shall be punishable with imprisonment for a
Failure to comply with
period of one year with or without a fine, which may
the orders of the tribunal
extend to ten per cent of the cost of the building.
Non – registration of the An agent shall be punishable with a fine of Rs. 10,000 per
project day or five per cent of the total cost of the building.
ANALYSIS OF REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
ADVANTAGES OF RERA FOR THE BUYERS
The customers are usually the ones who suffer the most if there is a problem,
so the RERA was implemented having them in mind. The RERA Act has the following
advantages:

• RISK OF DELAY IS AVOIDED: In recent years, builders have been known

for delaying the completion of projects. If there is any delay, the RERA act
stipulates that a penalty must be paid.

• NO EXCESS CHARGES: This Act contains all the information on the pricing
per area. The RERA statute defines a built-up area, super built-up area and
carpet area, making it impossible for builders to charge excessively. Payment
for the super built-up area is forbidden. A customer will only be charged for
the carpet area specified in the Act.

• TRANSPARENCY: One of the most significant benefits provided to

consumers is transparency. On the RERA website, the builders are expected to
provide details about everything. This will assist customers in learning the finer
points of the buildings and projects.

• LIABILITY: Quality has always been a concern, particularly when it comes to

a place where we must reside. If there is a quality issue, the consumer should
notify the builder, who should address the issue within 30 days.

• QUICK REDRESSAL: Regulatory organisations and appellate tribunals will

be established in each state under RERA to resolve builder-buyer issues. A
person who has been aggrieved by any direction can expect a response from
the appellate court within 120 days. If the buyer is not pleased with the decision
of the Appellate Authority, he may further appeal to them. However, the
appeal will only be heard after payment of

1. Thirty per cent of the penalty,

2. or a higher percentage as decided by the Appellate Tribunal,
3. or the whole sum due to the allottee, including interest and
compensation, if any.
ADVANTAGES OF RERA FOR BUILDERS
The following are the few advantages given to the builders:

1. ADEQUATE FINANCIAL INFLOW: The start of a project is a big stumbling

block for the property business. Financial changes such as the formation of the
GST and as a result, the liberalisation of FDI have aided RERA in making
business easier. Lenders are more prepared to provide income to builders now
that the RERA Act has restored trust and openness. The transparency of
monetary transactions has improved since demonetization. Many international
 and domestic investors are being encouraged to invest in Indian projects. As a
result, there are more structured financial inflows, making property
developments easier to implement.
2. INCREASED COMPETITION: There are further chances of reviving the real
estate market up to the mark which will surely interest home buyers to invest
and buy property without any fear of fraud. Due to such progressive rules, it
will most likely generate competition among the developers as the buyers will
be interested in investing their money into the upcoming projects without
much fear.
3. BETTER FUNCTIONING: In the past, there were no suitable regulations or
norms governing the real estate industry. There were also a lot of unresolved
issues. The RERA act made it easier for the real estate industry to work
efficiently and consistently.
4. IMPOSITION OF PENALTY: If a customer does not pay his dues on time, the
legislation contains a clause requiring the consumer to pay a penalty for the
late payment.
5. TRANSPARENCY: Both the buyer and the seller benefit from transparency
being the core aspect of the Act. Transparency also aids in the development of
a positive relationship between the builder and the customers.
DISADVANTAGES OF RERA
As much as there are real benefits of enforcing RERA, there are also some
disadvantages. The builders are the ones who have suffered the most, as a result of
the RERA statute, and have had to shoulder a lot of costs. This Act has had a significant
impact on business. The following are some of the drawbacks of RERA:

1. The RERA rules and regulations do not apply to projects that were initiated
before the adoption of RERA.
2. Compulsory registration may be a drawback because the government can take
a long time to approve a plot.
3. There is also internal politics in this industry. Sometimes the government
requests additional funds or requires them to bribe the government to obtain
approval, resulting in financial difficulties.
4. There are no specific requirements for buildings less than 5000 square metres.
This will allow them to charge excessive fees resulting in a conflict.
5. A project may take longer to complete than expected. It is tedious to begin a
new endeavour without completing the previous one as a builder cannot sell a
building until it is completed and it becomes difficult for them to start a new
project.
6. It takes around two years for the promoter to acquire clearance, and thus the
sector’s expansion will be hampered.
7. There are no provisions for rentals in RERA.
 8. There is a cash flow problem due to the seventy per cent deposit of payment in
the escrow account.
9. The punishments are severe. In case of contravention of the provisions of this
Act or failure to comply with the provisions of the Act, the punishment is either
five per cent of the cost of the project.
IMPACT OF THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT,
2016 ON THE INDUSTRY
The implementation of RERA has caused significant disruption in the business.
The real estate business has contributed significantly to the country’s economy but
this measure has harmed the industry and all builders are currently in financial
distress as the Act has a direct impact on the prices of homes and home loan interest
rates. The sector is beset by financial difficulties and has been hampered by numerous
obstacles. The implementation of RERA has caused significant disruption in the
business. The real estate business has contributed significantly to the country’s
economy but this measure has harmed the industry and all builders are currently in
financial distress. The sector is beset by financial difficulties and has been hampered
by numerous obstacles. RERA has had a massive impact on the corporate world. The
execution of demonetisation was already a problem but then the simultaneous
enforcement of RERA produced a mass outrage. Property sectors of many states are
becoming more transparent and credible as a result of existing regulations. Benefits
are anticipated to accrue over time to all or any buyer. The scope and spirit of the Act
can be upgraded by technologically enabled platforms that can handle greater data
sets that are not yet recognised by many countries. The predicted advantages of the
Act are likely to grow as a result of the increased focus on its implementation.
THE ECONOMIC IMPACT OF RERA ON THE INDUSTRY
In India, three main policies were recently brought in by the Union
Government. They were demonetisation, Goods and Services Tax and Real Estate
(Regulation and Development) Act which impacted the economy to a large extent.
RERA was enforced after six months of demonetisation which detrimentally affected
the real estate market and impeded its development. RERA affected the small-scale
developers and contractors, especially in the metropolitan areas as many of their
planned real estate projects were either abandoned or delayed until they were
registered under RERA Act and as a result job prospects for the workers were scarce.
There were also changes in liability and increased responsibility of the builders in
terms of the delivery of the property. Furthermore, it led to a situation where sellers
could not possibly sell the property at lower prices due to limited incentives and
buyers were not willing to buy property due to their income hit by demonetisation or
the reduced liquidity of the property. The real estate market was completely sluggish
causing economic impacts and imbalance.
LACUNAS IN THE RERA ACT
1. The RERA Act categorically describes what is a carpet area but in terms of
describing a net functional area, it did not include the area sold to the allottees
for their individual use, such as the living room, bedroom, kitchen area and the
lavatory, which should have been included.
2. Every potential project is to be registered under the Act under Section 3 of the
Act. RERA also bars pre-launches in cases where authorisation is absent by the
agency concerned. It is challenging when there are several phases in
constriction of a real estate project and approval is required for each project. As
there is no single-window clearance, the project’s progress will face hindrances
and be delayed. Whereas Section 32 of the Act says that it is the duty of the Real
Estate Authority to make a recommendation on the development of a single-
window system to the appropriate government of the competent authority to
check if the projects are completed in due time.
3. In many states, the implementation of the Act began only in May 2017 although
the Act was effective from May 2016 and as of 2019 many states and union
territories did not have the Real Estate Authority’s website launched. As per
the status of RERA implementation in India, the National Capital Territory of
Delhi, Assam, Manipur, Nagaland, Arunachal Pradesh, Sikkim, Jammu and
Kashmir and Ladakh have not launched the Real Estate Authority’s Website.
4. As there are insufficient recovery powers with RERA, there is a big lacuna as
there is a failure to comply with all the orders issued in favour of homebuyers
by the RERA Authorities in the respective states
5. The Real Estate (Regulation and Development) Act, 2016 does not mention that
it is available only for registered projects.
6. The Act provides for certain categories of projects that are not required to be
registered; these are within the scope of this Act. Although the projects
mentioned in Section 3(2) have been pulled out of registration requirements, it
has not been done so in the purview of other provisions of the Act.
7. The provisions for registration and obligations to be carried out at the time of
the registration are applicable only for the registered projects and not all
projects.
8. There is a lack of cash caused by a variety of extrinsic and intrinsic issues in the
sector. Builders are forced to seek alternative sources of funding, resulting in a
spike in home prices. This fluctuation has an impact on the demand and supply
situation in this industry.
9. Cash flow issues will arise as there is seventy per cent investment in the escrow
account, causing project delays. This step is however taken to keep the
developer’s mind from wandering to new projects and to finish the current
project.
10. If a builder fails to comply with any provisions of the Act, he is punished with
up to three years imprisonment or a fine of ten per cent of the total cost of the
 project. This issue put the buyers at risk and forced them to leave their homes
until the problem was resolved.
11. RERA does not include any rental agreements, so it is entirely up to the buyer
to save the rental agreement, which clearly states the agreed and disagreed
portions, to save the property and make correct use of it.
KEY CHALLENGES OF REAL ESTATE (REGULATION AND DEVELOPMENT)
ACT, 2016
RERA, 2016 aim to create symmetry of information between the promoter and
the buyer, transparency of contractual terms, basic accountability standards, and a
fast-track dispute resolution process. However, the system’s stumbling blocks are
outlined below:

1. There is still a disparity in the timelines that states use to enact RERA Acts.
Only 15 states have issued final guidelines, while others are still working on
them.
2. There is also a lot of misunderstanding among brokers and distributors about
how to advertise projects to customers. Prohibitions on the development of
builder microsites, restrictions on selling, KYC, and other issues are yet unclear.
3. There is also some confusion regarding the re-execution of agreements in cases
when the deed has already been signed. While some states demand that all such
arrangements be re-executed under the RERA, others exempt existing
agreements. This mismatch between states is causing a lot of misconceptions
among property buyers.
CURRENT ISSUES IN INDIA IN RELATION TO THE REAL ESTATE
(REGULATION AND DEVELOPMENT) ACT, 2016
The government intends to put tenanted or abandoned buildings, as well as
their renters, under the Real Estate (Regulation & Development) Act of 2016, giving
the consumers the same protection as other homebuyers for the first time. Many cities,
particularly Mumbai, have tenanted or decommissioned buildings that contain people
who have been living there for decades at low and artificially discounted costs.
According to Magic Bricks, over seventy-four per cent of homebuyers in India are
uninformed of the online process for checking the status of the project under the Real
Estate Regulatory Act and also unclear about whether the projects are registered on a
website or not. They majorly lack the relevant information such as carpet area,
payment methods and the builder’s registration number. Many projects were
supposed to register on websites and distribute fliers with the builders’ specific
details.
ANALYSIS OF THE ESTABLISHMENT OF THE TRIBUNALS
When it comes to the establishment of Appellate Tribunals and related tasks,
there have been some aspects that require attention. The following are some of them:
 1. Real Estate Appellate Tribunals have not been formed in all Indian states and
union territories. Appellate Tribunals have been formed in 22 states, with 13
permanent and 9 interim tribunals. The states must establish permanent
authorities and Appellate Tribunals to better execute the Act and reduce the
burden on the district courts.
2. There was a petition raised in the Gujarat High Court to ensure that the
tribunals are constituted as per the Act. Because the Appellate Tribunal lacked
technical members, it was called “Coram non-judice.” Technical members must
be recruited since the real estate business necessitates specialised knowledge
that judicial members may lack. Real estate is a vital national asset. The goal of
the Act will be defeated if the Tribunal becomes bureaucratized. Other
difficulties were noted as well, such as the Appellate Tribunal’s failure to give
information on the number of appeals filed, pending appeals, and so on. To
avoid further dilution of the RERA, it is necessary to guarantee that the
institutions involved are given sufficient autonomy to function efficiently and
that additional bureaucratisation is avoided. Important factors such as
vacancies not being filled or appointments not being made impede institutions
and contribute may defeat the objectives of the Act.
JUDICIAL INSIGHTS
GEETANJALI AMAN CONSTRUCTIONS V. HRISHIKESH RAMESH PARANJPE

ISSUE – In this case, the issue was about project registration and the dispute was with
regard to Section 3 of RERA. The most essential rule in this regard was Section 3(2),
which stated specifically that projects are not necessary to be registered if their area
does not exceed 500 square metres or if the building does not have more than eight
storeys.

ARGUMENTS – Even after arguing that it is an “or” condition and not a “and”
condition, the defendant failed to get the desired result. The argument put forward
stated that the first condition that it must be within 500 sq meters. is satisfied, while
the allottees have filed that since there are approximately 22 flats and 9 shops, it
violates the second condition The question before the court was to interpret Section
3(2) and it held that Section 3(2) will be interpreted in its truest sense now and that the
developer needs to satisfy both the conditions to get approval.

DECISION – Held that the developer has to register the project within one month and
pay thirty lakhs.
MR. JATIN MAVANI V. M/S. RARE TOWNSHIP PVT. LTD, 2018
ISSUE – The issue, in this case, is the filing of several RERA proceedings on the same
subject matter. In this case, the complainant claimed that despite booking an
apartment and paying the appropriate consideration, he was not provided with the
flat on time and that other customers similarly sought redress from Maharashtra
RERA, requesting the cancellation fee be waived and the sum already paid to be
refunded.

ARGUMENTS – The respondent builder argued that the first complainant never had
the agreement registered and hence it could not be carried out. Even after the
respondent asked him to enter into a new agreement, he refused and is now coming
up with other buyers which would amount to a multiplicity of proceedings under the
same authority, as he was a party to an earlier proceeding.

DECISION – The Maharashtra RERA took note of this and decided that the
complainant had exhausted his remedy when he first sought the forum and that he
now has no locus standi in approaching the court because, if he is regarded as an
allottee, numerous proceedings before the same court would not be permitted.
SUSHIL ANSAL V. ASHOK TRIPATHI, SAURAB TRIPATHI, 2020

FACTS – In this case, a decree was challenged in the NCLAT, which ordered the
company to file for insolvency in order to pay a sum of rupees 73 lakh awarded by
Uttar Pradesh RERA. The question was whether home buyers may be considered
financial creditors.

DECISION – The forum determined that homebuyers can enforce their decree under
civil law, but they cannot seek remedy from the IBC. According to the 2019
amendment, either 100 buyers or ten per cent of the allottee must file bankruptcy, but
the fact that there are only 100 buyers can force the company to file bankruptcy by
only two or three individuals. It is clarified that a home buyer is not to be seen on the
same lines as a financial creditor when it comes to enforcing a decree for the
repayment due to default on the part of the promoter itself.
BALDEV SINGH V. ULTRATECH TOWNSHIP DEVELOPERS PVT LIMITED,
2020
ISSUE – The question, in this case, was whether an allottee can demand a refund
while withdrawing from a project which was nearing completion. The Authority in
his opinion held that it not only protects the interest of the buyers but promotes
orderly growth of the real estate industry through efficient project execution in the
interest of the larger public.

DECISION – The Haryana RERA Panchkula’s view can be summed up as follows –

“In case the relief of refund is granted to the complainant, interests of the rest of the non-
complainant allottees could also get seriously jeopardised. Moreover, the flat of the respondent
is complete and ready for possession and the complainant can take possession of the flat after
clearing his pending dues.”