Mumbai: In a significant move to enhance transparency and ensure the protection of allottees’ interests, the Real Estate Regulatory Authority (RERA) of Gurugram has decided to verify the authenticity of the two-thirds consent submitted by real estate promoters when alterations are proposed to layout or building plans. This decision marks an important step in strengthening the implementation of the Real Estate (Regulation and Development) Act, 2016, a landmark legislation aimed at bringing more accountability and efficiency to India’s real estate sector.
Under the RERA Act, any changes to the layout plans or building specifications of a real estate project, including alterations to fixtures, fittings, and amenities, require prior consent from at least two-thirds of the allottees. This stipulation is designed to safeguard the rights of homebuyers by ensuring that their agreement is sought before any significant changes are made to the property they have invested in.
Background on Previous Rules
Before the introduction of RERA, changes in building and layout plans were often made by developers without the explicit approval of allottees, leading to disputes and dissatisfaction among homebuyers. This lack of transparency was a common issue in the real estate industry, with many promoters making alterations that were not in line with the original agreements, causing confusion and legal challenges.
The Real Estate (Regulation and Development) Act, 2016, was created to address these challenges and regulate the sector more effectively. It established a framework for the approval process of any alterations to plans, including the mandatory requirement of securing two-thirds consent from allottees. Section 14 of the RERA Act clearly mandates that promoters cannot make changes to the approved plans unless they have obtained the consent of the majority of allottees involved in the project. This provision aims to ensure that any alterations made to the original layout or specifications are in line with the expectations of the buyers, helping prevent unfair practices.
Role of the Promoter and Allottees
According to Section 14 of the RERA Act, the promoter is prohibited from making additions or alterations to the sanctioned plans, layout plans, or specifications of the apartment, plot, or building without obtaining the consent of the concerned allottees. However, the Act does allow for minor changes that are necessary due to structural reasons or changes requested by an individual allottee, provided these changes are recommended by an authorized architect or engineer.
This ensures that any necessary changes, such as improvements or adjustments based on safety concerns or individual preferences, can be accommodated. The Act aims to strike a balance between the rights of allottees and the practical needs of the project. While developers are permitted to make changes in certain circumstances, they must ensure these are in compliance with the overarching regulatory framework.
New Verification Mechanism
The decision by RERA Gurugram to verify the two-thirds consent comes in response to concerns about the authenticity of the approvals submitted by promoters. Previously, developers could submit consent documents without a thorough check on their accuracy, leading to cases where the required majority of allottees was not actually in agreement with the proposed changes. This new move by RERA will help ensure that the consent provided is legitimate and that the majority of allottees are indeed in favor of the alterations.
RERA Gurugram’s decision to introduce a verification mechanism will help mitigate disputes related to unauthorized changes and foster trust between developers and buyers. This action aligns with the authority’s ongoing efforts to create a more transparent and accountable real estate market, protecting the rights of homebuyers and enhancing the overall credibility of the real estate sector.
Benefits for Allottees
For allottees, this new step ensures that their voice is heard when it comes to changes in the layout or building plans. It gives them greater control over the decisions that directly affect their properties, reinforcing their rights under the RERA framework. Homebuyers will no longer have to worry about developers making significant changes to the project without their consent, reducing the risk of receiving a product that is different from what was initially promised.
Moreover, the verification of consent ensures that any alterations made are in line with the initial agreements and are supported by a majority of the allottees. This process helps prevent situations where developers unilaterally make changes that could negatively impact the value or livability of the property.
Future Outlook
As RERA continues to strengthen its enforcement of regulations, this move to verify consent reflects an overall shift towards greater accountability in the real estate sector. The new mechanism is expected to encourage more developers to adhere strictly to the rules, while also providing homebuyers with more confidence in the real estate market.
The decision to verify two-thirds consent is part of a broader trend toward improving the regulatory framework and ensuring that real estate transactions are fair and transparent. As India’s real estate market matures, these types of changes are essential for protecting the interests of consumers while supporting the long-term health of the sector.
The Real Estate Regulatory Authority of Gurugram’s new approach to verifying two-thirds consent is a positive development for the real estate industry. It helps safeguard the rights of homebuyers, ensures greater transparency, and sets a strong precedent for other regions in India to follow. The increased scrutiny of promoters’ actions will ultimately result in a more trustworthy and equitable real estate market for both developers and consumers.
