Regulates the real estate sector, mandates project registration, protects allottees, and constitutes State Real Estate Regulatory Authorities and Appellate Tribunals. The rate of interest and several procedural details are left to State Rules, which vary between States.
Where a person sustains loss by relying on an advertisement or prospectus that contains an incorrect statement, he shall be compensated; and if he withdraws from the project, the promoter shall return his entire investment with interest and compensation.
A promoter shall not accept more than ten per cent of the cost of the apartment, plot or building as an advance payment or application fee without first entering into a written agreement for sale, which shall be registered.
The proposed project shall be developed in accordance with the sanctioned plans and specifications approved by the competent authority; structural defects brought to notice within five years of possession must be rectified without further charge.
If the promoter fails to complete or is unable to give possession by the date specified in the agreement for sale, he shall on demand return the amount received with interest and compensation where the allottee wishes to withdraw; and where the allottee does not intend to withdraw, the promoter shall pay interest for every month of delay till handing over of possession.
The allottee is entitled to information on sanctioned plans and stage-wise completion, to claim possession as per the agreement, and to claim refund with interest and compensation on the promoter's failure; the allottee is also liable to make the necessary payments and to pay interest for any delay in payment.
Any aggrieved person may file a complaint with the Authority or the adjudicating officer for any violation of the provisions of the Act or the rules and regulations made thereunder.
The Authority shall appoint one or more judicial officers as adjudicating officer to adjudge compensation under sections 12, 14, 18 and 19; the application is to be disposed of within sixty days.
No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered to determine.
The text shown is a working summary used inside Nyaya for grounding and UI preview. For verbatim reproduction, refer to the bare Act published on indiacode.nic.in.