Promoters Should not Offer Possession on Terms to Restrict Legal Rights of Allottees:  U.P. RERA

Lucknow / Gautam Buddh Nagar / September 20, 2024: U.P. RERA has received complaints from allottees of real estate projects that the promoters are offering conditional possession of the units by means of a declaration or agreement and forcing them to sign documents which is different from the Agreement for Sale and illegal because it contains conditions that restrict them from exercising their legal rights in future. The Authority is preparing to take cognizance of the complaints received against such promoters to protect the rights and interests of the allottees and suitable action will also be taken against the promoters, if found guilty, U.P. RERA said in a statement.  

Sanjay Bhoosreddy, Chairman, U.P. RERA, shared his views and said that complaints have been received of conditional possession of units to the allottees. This act of the promoters is against the principle of natural justice and objectives of the RERA Act and, also, an obstacle in the development of the real estate sector. The promoters should sell the units only on the basis of facts and approved maps, layouts and provide possession without deviating from the terms of the Agreement for Sale so that the allottees do not feel cheated and dissatisfied in any way, the statement added. 

From time to time, the Authority instructs the promoters not to force home buyers to take possession of the units in any format other than the Model Agreement for Sale, on arbitrary and illegal terms which violate their legal rights. The Authority instructed the promoters to sell the units only on the basis of facts, approved map and layout and offer possession as per the terms of the Agreement for Sale along with OC (Occupancy Certificate)/CC (Completion Certificate) from competent development authorities, the statement further said.  

The Authority has received complaints from allottees that some promoters of the state are offering possession without developing the amenities and facilities mentioned in the Agreement for Sale or BBA. Also, before offering possession, promoters are raising demand which is more than the cost of the unit and beyond the conditions of the agreement. The allottees are being forced to take possession of incomplete units with formalities of registration and without obtaining OC/CC.

Apart from this, the project is being sold by describing the facilities in the plan without having approval of the competent authorities, changes are being made in the approved plan and layout without the consent of the allottees and possession is not being given as per the mentioned time line in the Agreement for Sale.

After selling the units on wrong facts and without developing the mentioned amenities in the project, such promoters are forcing the allottees to sign such agreement/declaration for getting possession which contains such conditions that do not allow the allottees to exercise their legal rights in future including RERA Act. 

In the above circumstances, the allottees can demand possession and compensation along with interest for the delayed period from the promoter under the provisions of the RERA Act and can also file a complaint to protect their interests at other levels, which include Consumer Forum, High Court and Supreme Court. But with the intention of avoiding such a situation in future, the allottees are being forced to accept conditional possession and such declarations which are against the rights and interests of the allottees.