Section 18 of The Real Estate (Regulation and Development) Act, 2016.

Section 18 of The Real Estate (Regulation and Development) Act, 2016.





There were a lot of disputes amongst the Builders/Developers and flat purchasers in regard to the delivery/handover of possession of the flat, date of possession of the flat, agreements between the parties etc which then resulted in the filing of civil and criminal cases, to put an end to this the legislature implemented the The The Real Estate (Regulation and Development) Act, 2016 with the major intent to put an end/reduce the litigations and stop the unfair practices by the Builders/Developers. 
Section 18 of The Real Estate (Regulation and Development) Act, 2016 comes under Chapter III wherein the functions and duties of promoter are stated.

Object of the Act : An Act to establish the Real Estate Regulatory Authority for the regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.
The The Real Estate (Regulation and Development) Act, 2016 established an authority to deal with issues/matters pertaining to the allotment of flats, defects of flats, and delayed possession of flats etc of allottees. The Developer/Builder/promoter may also file a complaint with the authority if the allottee acts in contravention of the terms of the agreement or provisions of the RERA.

Section 18 of The Real Estate Regulatory Authority, 2016.

18. Return of amount and compensation.—(1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building,— 
(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or 
(b) due to discontinuance of his business as a developer on account of 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 from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act: Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed. 
(2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided under this Act, and the claim for compensation under this subsection shall not be barred by limitation provided under any law for the time being in force. 
(3) If the promoter fails to discharge any other obligations imposed on him under this Act or the rules or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act.

 Explanation.

1] As per section 18 if the promoter fails to complete the project and hand in the flat or is otherwise unable to give possession of an apartment, plot or building according to the terms of the agreement for sale, due to discontinuance of his business as a developer on the account of suspension or revocation of the registration under this act or for any other reason then the allottee can file a complaint with the RERA authority seeking either exhibit from the project and thereby seeking a refund of entire amount along with interest paid by the allottee to the promoter or the allottee has the option to stay in the said real estate project and seek monthly interest on delayed possession till the promoter hands over the possession of flat along with the occupation certificate, the rate of interest payable to the allottee is as may be prescribed.

2] The promoter under section 18 shall compensate the allottees in case of any loss caused to the allottees due to the defective title of the land, on which the project is being developed or has been developed in any manner as provided under The Real Estate Regulatory Authority, 2016  and the claim and compensation under the sub-section 2 of section 18 shall not be barred by limitation provided under any law for the time being in force.

3] The promoter fails to discharge any other obligations imposed on him under the act of The Real Estate Regulatory Authority, 2016, rules and regulations made thereunder or violates/contravenes/fails to discharge any obligations imposed on him by the terms and conditions of the agreement for sale, in such cases also the promoter is liable to pay compensation to the allottees, in the manner as provided under this Act.

 Article only for the purpose of education.




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