Is S. 13 of RERA Act a mandatory requirement? Can promoter demand cost of plot more than 10% before registering sale agreement? | Raj RERA decides

Rajasthan Real Estate Regulatory Authority, Jaipur: Coram of Nihal Chand Goel (Chairman) and Shailendra Agarwal, Salvinder Singh Sohata (Members) decides the matter in light of Section 13 of Real Estate (Regulation and Development) Act, 2016 and the significance of sale agreement.

Factual Matrix

Instant matter was with regard to a project of Jaipur Development Authority registered with RERA.

Complainant had participated in an auction organized by respondent 1 and has been successful, he had been allotted a plot in the above-stated project, being implemented by respondent 1 under an MoU with respondent 2.

Though the 15% amount was deposited with respondent 1 , but without executing an agreement for sale, the respondent had issued a further demand note of 35% amount, which was due to be deposited. Respondent included a warning in its demand note.

Complainant stated that respondent 1 had not executed an agreement for sale as envisaged under Section 13 of the RERA and was asking for further amounts to be deposited.

Complainant prayed that respondent 1 should be directed to execute an agreement for sale in terms of Section 13 of the Act and be restrained from asking for a deposit of the remaining amount until such an agreement is executed and registered.

Decision

Bench stated that all the provisions of RERA including Section 13 which apply to any advertisement, promotion, booking offer of sale, or sale of any plots in a registered project would apply to the project mentioned in the present matter.

The auction had been conducted by announcing that the project in question was a project registered with RERA and thereby informing and promising to the potential buyers that the provisions of the Act and the rules and regulations made thereunder would apply to this project and determine their relationship with Respondent 1 in respect of any plot purchased at the auction.

In view of the above, Authority directed as under:

  • Respondent 1 shall execute an agreement for sale with complainant and get it registered before demanding or accepting any further amount beyond 15% amount which was already deposited.
  • Complainant shall pay the balance amount by 30-09-2020 or within 3 days from the date of sale agreement as per the payment schedule given in the agreement for sale to be executed, whichever is earlier.
  • Respondent 1 to align its land disposal rule and terms and conditions of auction with provisions of the Act.

[Vinod Kumar Agarwal v. Jaipur Development Authority, Complaint No. RAJ-RERA-C-2020-3622, decided on 22-09-2020]


Advocates before the Authority:

For the Complainant: Advocate Pranjul Chopra

For Respondent 1: CA Mitesh Rathore 


 Additional Information

Section 13 (1) of the Act provides for an agreement to be executed and registered before the promoter accepts an amount exceeding 10 per cent of the total cost of the plot. This is a mandatory requirement of the Act and cannot be dispensed or compromised with.

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