0% found this document useful (0 votes)

12 views6 pages

PPSD 1693837968

The document is a plagiarism scan report for a document on the Real Estate (Regulation and Development) Act of 2016 in India. The report found that 92% of the content was unique, while 8% was plagiarized. It provides summaries of key cases related to the act and discusses its impact on the real estate industry in India.

Uploaded by

Tanu Rathi

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

12 views6 pages

PPSD 1693837968

Uploaded by

Tanu Rathi

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 6

PLAGIARISM SCAN REPORT

Date September 04, 2023

Exclude URL: NO

Unique Content 92 Word Count 969

Plagiarized Content 8 Records Found 0

CONTENT CHECKED FOR PLAGIARISM:

8. Defines carpet area as the flat's net usable floor area. The carpet area will be charged for, not the super-built-

up area.

9. Punishment : For violating the orders of Appellate Tribunals and Regulatory Authorities, developers may

receive a sentence of up to three years in prison, while agents and buyers may receive a sentence of up to one

year.

Projects exempt from the ambit of the Real Estate (Regulation and Development) Act, 2016

When the following conditions are met:

1. The land area does not exceed 500 square meters; and

2. The number of units does not exceed eight, the projects listed below do not need to be registered under the

Act.

3. In the event of remodelling, upkeep, or redevelopment:

4. Where the total area of the land to be built (including all phases) does not exceed 500 square meters or the

total number of flats to be created does not exceed eight;

5. In cases where the promoter has obtained a certificate of completion for a real estate project prior to the

effective date of this Act;

6. For remodelling, repair, or redevelopment that does not include selling, promoting, or allotting a new

apartment, plot, or structure, as applicable, under the real estate project.

Impact of the Real Estate (Regulation and Development) Act, 2016 on the industry:

The introduction of RERA has caused significant disruption in the real estate sector. While this sector has been a

major contributor to the country's economy, the Act has adversely affected it. Builders are facing financial

difficulties due to the Act's impact on home prices and loan interest rates, leading to numerous obstacles.

Page 1 of 6
RERA's simultaneous enforcement with demonetization stirred controversy, but it has improved transparency

and credibility in property sectors of several states, with expected long-term benefits. The Act's potential can be

further enhanced through technology-enabled platforms.

The economic impact of RERA on the industry:

The Indian real estate industry experienced significant economic effects due to RERA, which followed

demonetization. Small-scale developers and contractors, especially in metropolitan areas, faced delays and job

scarcity as they registered under RERA. Changes in liability and reduced liquidity affected property prices and

demand, causing economic imbalances.

Lacunas in the RERA Act:

1. The Act defines carpet area but omits the area allotted for individual use (living room, bedroom, etc.).

2. Project registration under Section 3 is challenging, lacking a single-window clearance.

3. Delayed implementation in some states and missing Real Estate Authority websites.

4. Insufficient recovery powers for RERA orders.

5. Lack of clarity on the Act's applicability to registered projects.

6. Projects exempted from registration but not from other Act provisions.

7. Registration obligations apply only to registered projects.

8. Cash flow issues lead to funding challenges and price fluctuations.

9. 70% escrow account requirement causes project delays.

10. Penalties for non-compliance risk buyers and project delays.

11. RERA excludes rental agreements, placing the responsibility on buyers.

Key challenges of the Real Estate (Regulation and Development) Act, 2016:

1. Variability in state timelines for enacting RERA Acts.

2. Misunderstanding among brokers about advertising projects.

3. Confusion regarding re-execution of agreements.

4. Lack of consumer awareness and information about registered projects.

5. Current issues in India in relation to the Real Estate (Regulation and Development) Act, 2016:

6. The government aims to extend RERA protections to tenants in tenanted or abandoned buildings. Many

homebuyers lack information about project status, payment methods, and builder details.

Analysis of the establishment of the tribunals:

1. Incomplete formation of Real Estate Appellate Tribunals in some states.

2. Need for technical members in Tribunals.

3. Ensuring sufficient autonomy and avoiding bureaucratisation.

4. Challenges related to vacancies and appointments in institutions.

JUDICIAL INSIGHTS

Page 2 of 6
Case: Geetanjali Aman Constructions v. Hrishikesh Ramesh Paranjpe

Issue: The central issue in this case revolved around project registration, particularly concerning Section 3 of

RERA. The key rule in question, Section 3(2), stated that projects need not be registered if their area is below

500 square meters or if the building doesn't exceed eight storeys.

Arguments: Despite arguing that this was an "or" condition, not an "and" condition, the defendant's argument did

not succeed. The argument contended that the project met the first condition (under 500 sq meters), but the

allottees argued that having approximately 22 flats and 9 shops violated the second condition. The court's task

was to interpret Section 3(2), and it concluded that both conditions must be met for approval.

Verdict: The court ruled that the developer must register the project within one month and pay a penalty of thirty

lakhs.

Case: Mr. Jatin Mavani v. M/s. Rare Township Pvt. Ltd, 2018

Issue: This case concerned the filing of multiple RERA proceedings on the same subject matter. The

complainant claimed that despite booking an apartment and making payments, he didn't receive the flat on time,

and other customers sought similar relief from Maharashtra RERA.

Arguments: The respondent builder argued that the first complainant never registered the agreement and

refused to enter into a new one. This, according to the respondent, led to multiple proceedings under the same

authority.

Verdict: Maharashtra RERA determined that the complainant had exhausted his remedy by seeking the forum

initially and now had no standing to approach the court for further proceedings.

Case: Sushil Ansal v. Ashok Tripathi, Saurab Tripathi, 2020

Facts: This case challenged a decree from NCLAT that ordered a company to file for insolvency to pay a sum

awarded by Uttar Pradesh RERA. The question was whether home buyers could be considered financial

creditors.

Verdict: The forum concluded that homebuyers could enforce their decree under civil law but couldn't seek

remedies under the IBC. The 2019 amendment required either 100 buyers or ten percent of the allottees to file

for bankruptcy, making it difficult for individual buyers to force insolvency.

Case: Baldev Singh v. Ultratech Township Developers Pvt Limited, 2020

Issue: The issue here was whether an allottee could demand a refund when withdrawing from a nearly

completed project, with a focus on protecting buyers' interests and promoting orderly growth in the real estate

sector.

Verdict: Haryana RERA Panchkula held that granting a refund to the complainant could jeopardize other

allottees' interests, especially when the respondent's flat was complete and ready for possession, and the

complainant could take possession after clearing dues.

MATCHED SOURCES:

Page 3 of 6
Real Estate (Regulation and Development) Act, 2016 - iPleaders

https://blog.ipleaders.in/real-estate-regulation-and-develop.... (https://blog.ipleaders.in/real-estate-regulation-and-development-act-
2016-2/)