Section 8 of RERA : Section 8: Obligation Of Authority Consequent Upon Lapse Of Or On Revocation Of Registration

Explanation using Example

Imagine a scenario where a real estate developer, XYZ Developers, is working on a housing project called "Dream Heights". The project was supposed to be completed by December 2021, but it's now March 2023, and the construction is far from over. The developer has also failed to adhere to the guidelines and timelines stipulated by the Real Estate (Regulation and Development) Act, 2016. Consequently, the Real Estate Regulatory Authority (RERA) decides to revoke the registration of "Dream Heights".

Under Section 8 of the Act, RERA consults with the state government regarding the next steps. They decide that the best course of action is to allow the association of allottees, which is a group consisting of the future homeowners of "Dream Heights", to take over the project. This association is given the first right of refusal to complete the remaining development work, ensuring that the homebuyers have a say in the completion of their homes.

However, before this decision is implemented, the developer has the opportunity to appeal the revocation order within the period allowed by the Act. Only after this period lapses without an appeal, or if the appeal is resolved, will the decision by RERA take effect, and the association of allottees can start coordinating the completion of "Dream Heights".