The onus is on the promoter to draw up and enter into the Agreement for Sale with an allottee strictly as per the form given at Annexure ‘A’ of the Assam Real Estate (Regulation and Development) Rules, 2017. This was stated by the Assam Real Estate Appellate Tribunal (REAT) 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 31.10.2017 to purchase a residential flat in an RCC building at Chatribari, Guwahati. The allottees approached the RERA, Assam with a number of grievances against the Promoter. In their final order passed on 07.12.2022, as many as 29 directions were passed by the RERA for due compliance by the Builder. One of the directions was imposition of a penalty of Rs.50,000/- on the builder for not signing the Sale Agreement as per the prescribed format. The builder filed an appeal before the Assam REAT against this order.
In its order delivered today, the Tribunal rejected the contention of the builder that although the Agreement for Sale did not conform to the prescribed form, no mala fide 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 can 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’.
The order was passed by Mr. Justice (Retd.) Manojit Bhuyan, Chairperson and Shri Onkar Kedia, Member, Assam REAT. The full text of the order is available at reat.assam.gov.in, the official website of the Tribunal.
(Press Relase)
