new Delhi13 hours ago
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The court also made it clear that the flat allotment period will not be decided on the basis of the project’s RERA registration date.
- The builder-buyer agreement becomes effective only with the signature, all the buyers’ obligations are attached to the deadline set in the agreement.
- The developers were taking advantage of delay by delaying RERA registration and adding their responsibilities with RERA registration date.
While granting relief to the home buyers, the Supreme Court ruled that the home buyer will decide the allotment period for the housing unit based on the date of the builder-buyer agreement. The court also made it clear that this period will not be fixed on the basis of the date of registration of the project under the Real Estate (Regulation and Development) Act-2016 (RERA). Welcoming the court’s order, homebuyers said that with this decision, the court has re-established the importance of the builder-buyer agreement.
The court gave this ruling in the case related to Messrs Imperia Structures Ltd v. Anil Patni and another bench of Justices UU Lalit and Vineet Saran. Legal Experts stated that the builder-buyer agreement becomes effective only with the signature and all the obligations of the flat buyers are attached to the deadline set in the builder-buyer agreement. But the developers were taking advantage of delay by delaying RERA registration and adding their responsibilities with RERA registration date.
The agreement in the case was on 30 November 2013, but RERA registration was done on 17 November 2017
In this case, the builder-buyer agreement was signed on 30 November 2013. The project was registered on 17 November 2017 under RERA. According to the builder-buyer agreement, the unit was to be handover within 42 months from the date of the agreement.
NCDRC ordered compensation to builder
Home buyers filed a case with the National Consumer Dispute Redressal Commission (NCDRC) over the delay in the project. The Consumer Court had also ordered compensation to the builder, but the builder had gone to the Supreme Court. The builder had argued that RERA registration is valid till December 2020, so the project cannot be considered late.
The allotment period was over before RERA registration
The Supreme Court rejected the builder’s argument and said that the allotment period was over before RERA registration. Just RERA registration being valid till 31-12-2020 does not mean that the entitlement of allottee to take action will also be delayed.