Guwahati, May 30/–/ Assam Real Estate Appellate Tribunal (REAT) has, in an order, stated that the onus was on the promoter of a real estate project to draw up and enter into an agreement for sale with an allottee strictly in accordance with the prescribed format as laid down by the Assam Real Estate (Regulation and Development) Rules, 2017.
“The onus is on the promoter to draw up and enter into the agreement for sale with an allottee strictly in accordance with the prescribed form given at Annexure ‘A’ of the Assam Real Estate (Regulation and Development) Rules, 2017,” the Tribunal stated, while disposing of an appeal filed by a Guwahati-based promoter against an order, passed by the Real Estate Regulatory Authority (RERA), Assam.
In this case, a couple had entered into a registered agreement for sale with the promoter on October 31, 2017 to purchase a residential flat in an RCC building at Chatribari, Guwahati.
The allottees had approached RERA Assam with a number of grievances against the promoter.
As many as 29 directions were passed by RERA, in its final order on December 7, 2022, for due compliance by the builder, one of them being the imposition of a penalty of Rs 50,000 on the builder for not signing the sale agreement in accordance with the prescribed format.
The builder filed an appeal before the Assam REAT against this order.
In an order on Monday, the Tribunal rejected the contention of the builder that although the agreement for sale did not conform to the prescribed form, no malafide was intended and that both parties had entered into the agreement with open eyes.
The Tribunal also rejected the contention that any shortcomings in the agreement could always be rectified at the time when the conveyance deed is executed by the parties.
Giving reasons in support of its order, the Tribunal stated that “Sub-section (2) of Section 13 of Chapter III of the Real Estate (Regulation and Development) Act, 2016, under the heading “Functions and Duties of Promoter” provides that the agreement for sale shall be in such form as may be prescribed. Sub-rule (1) of Rule 9 of the Assam Real Estate (Regulation and Development) Rules, 2017 accordingly prescribes the form in Annexure ‘A’. On a harmonious reading of both the provisions, the onus is upon the promoter to draw up and enter into the Agreement for Sale with an allottee strictly as per the form given at Annexure ‘A’.”