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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
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.
4. Where the total area of the land to be built (including all phases) does not exceed 500 square meters or the
5. In cases where the promoter has obtained a certificate of completion for a real estate project prior to the
6. For remodelling, repair, or redevelopment that does not include selling, promoting, or allotting a new
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.
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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
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
1. The Act defines carpet area but omits the area allotted for individual use (living room, bedroom, etc.).
3. Delayed implementation in some states and missing Real Estate Authority websites.
6. Projects exempted from registration but not from other Act provisions.
Key challenges of the Real Estate (Regulation and Development) Act, 2016:
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.
JUDICIAL INSIGHTS
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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
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,
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.
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
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
MATCHED SOURCES:
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Real Estate (Regulation and Development) Act, 2016 - iPleaders
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Number 8 - Meaning - Symbolism - Fun Facts - in Religion and Myth
https://mysticalnumbers.com/number-8/ (https://mysticalnumbers.com/number-8/)
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