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The mandatory norms

DNMUM391548 | 7/1/2017 | Author : Aradhana Bhansali | WC :351 | Business & Economy

Policy Insights: Simplified provisions of RERA for home buyers along with their key responsibilities
RERA makes it mandatory for the promoters to enter details on the website of the authority which can be accessed by the home buyers on one click. A promoter is not permitted to accept more than 10% of the cost of the apartment as advance payment or an application fee from a person without entering into a written registered agreement for sale.
The buyer is given five years’ time from the date of possession to call upon the promoter to rectify all such notified defects without further charge within a period of 30 days. In the event of promoter’s failure to rectify such defects within the stipulated time, the aggrieved allottees shall be entitled to complaint to the Authority and receive appropriate compensation as well.

Section 18(1) of RERA provides that if a promoter fails to give possession of the flat/ apartment on the terms and the time period in the agreement between them, then such a promoter becomes liable to return the amount received by him in this respect with interest at such rate as is prescribed under the rules including compensation.
The promoter shall also compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is developed in the manner as provided under RERA and the claim for compensation shall not be barred by limitation provided under any law for the time being in force.
RERA warns home buyers to be diligent and makes them accountable for their default. Section 67 provides that in case an allottee defaults against the direction of the Authority, he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to 5% of the building cost as determined by the Authority. Further, Section 68 provides that if any allottee fails to comply with, or contravenes any of the orders or directions of the Appellate Tribunal, as the case may be, he shall also be criminally liable along with fines.

Aradhana Bhansali, Partner, Rajani Associates

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