RERA Cases Dossier by Juris Corp – January to March, 2021 – Quarterly Update in the LSI Quarterly Special

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The introduction of the Real Estate (Regulation and Development) Act, 2016 (‘RERA’/‘Act’) was one of the most significant steps towards regulating the otherwise unregulated real estate sector. With the introduction of the Act, the real estate sector also witnessed the establishment of real estate regulatory authorities across states, initially, it was contemplated that these authorities would simpliciter deal with issues between developers and allottees pertaining to handing over the possession of the units. However, with time, the provisions of the Act evolved and the authorities across states dealt with complex issues arising out of developer-allottee relationships.

In this context, we bring to you a special compilation on RERA, prepared by Juris Corp team comprised of Avikshit Moral (Partner), Preeti Dhar (Principal Associate), Anirudh Jakhotia (Associate) and Nikita Bhosle (Trainee), capturing important judgments/orders passed under RERA during the last quarter, giving a flavour of divergent views taken by Authorities located in different states. In a case where a developer failed to handover the possession of the flats to the allottees as per the agreement for sale, noting that the project was nearing completion, Maharashtra RERA held that payment of interest to the allottees for delayed possession would jeopardize the completion of the project, hence ruled that the developer was at liberty to set-off the interest amounts against the outstanding dues payable by the allottees, at the time of possession.

In another interesting matter, MahaRERA held that the reasons cited by the developer that possession was delayed on account of Covid-19 does not justify the delay, remarking that Covid-19 pandemic occurred in March 2020 i.e. after the agreed date of possession. Deciding a similar petition alleging delay in delivery of possession, Haryana RERA ruled that downfall in real estate market, demonetisation and enforcement of GST regulations will not qualify as force majeure events and are not sufficient reasons to extend the time period for completion of project.

Click here to read this insightful compilation titled “RERA Cases Dossier by Juris Corp – January to March, 2021”.

Best Regards,

LSI Team

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