Real Estate Regulatory Authority Act, 2016, Section 14 requires promoters to follow approved plans and project specifications. Developers must follow blueprints and code to complete projects. This provision protects allottees from project-wide or unit-specific changes. Homebuyers were finally able to take a deep breath of relief after the modification in sanctioned plan as per RERA Act of 2016, and they reported feeling more secure because of the provisions of the act. In this blog, we will have an understanding about modification in the sanctioned plan under RERA Act, 2016.
Quick Look
Before the RERA Act, 2016, developers changed layout and sanction plans to suit their demands, leaving homeowners misled and their money in under-construction units. Project promoters must follow authorities’ approved plans and specifications.
The builder must get written authorization from at least two-thirds of the allottees, excluding the promoter. The RERA Act, 2016 protects homebuyers and attracts investors.
Impact of modification in the Sanctioned Plan as per RERA Act, 2016
Prior to the passing of the RERA Act in 2016, there were concerns surrounding the imposition of provisions that would have permitted developers to change, revise, or amend the initial layout or plans in accordance with their own preferences. These worries persisted even after the RERA Act was passed.
In situations like this one powerless homebuyer who had their cash frozen were left with no choice but to comply with the one-sided terms and conditions that favoured the developers. Homebuyers were finally able to take a deep breath of relief after the modification in sanctioned plan as per RERA Act of 2016, and they reported feeling more secure because of the provisions of the act.
Because the RERA Act of 2016 is now in effect, it is imperative that developers adhere to the sanctioned plans, layout plans, and specifications that were first approved by the RERA Authority. Failure to do so may result in legal repercussions.
What is meant by the Sanctioned plan as per the RERA Act, 2016?
According to Section 2 (zq) of the RERA Act, 2016, the “sanctioned plan” includes the site plan, service plan, building plan, parking and traffic plan, landscape plan, layout plan, zoning plan, and any other plan. It includes permissions for building designs like environment permission and other permissions that must be accepted by the right authority before a real estate project can begin.
Discussion and Clarification of Section 14
This section contains two parts that are Adherence to the sanctioned plans and Adherence to the project specifications.
- This section is meant to protect the Allottees from changes that the Promoter makes on his or her own to the specifications of an individual unit or the approved plans (by the planning authority) for the Project as a whole.
- Section 14 of the RERA Act, 2016 prohibits the addition of language in Agreements reserving unfettered rights to alter and revise sanction measures.
- A Promoter must now get an Allottee agreement before changing a unit’s specs.
- If the Promoter modifies any Sanctioned Plans (as defined under Section 2 of the RERA Act, 2016), the Promoter must obtain prior consent from 2/3rd Allottees and report the modifications to the Authority and modify the Project details.
- Regardless of the number of flats or plots rented by him, his family, or a corporation or LLP or its affiliated entities, he will be counted as one allottee for the 2/3rd consent count.
- Project promoters must grasp Section 14 of the RERA Act, 2016 and RERA compliance criteria for plan modification.
- Phased developments must comply with Section 14 when RERA modifies the development plan (DP). It may not immediately influence the existing phase and its building construction, but alteration of the development plan requires compliance.
Procedure to comply with Section 14 of the Real Estate Regulatory Authority
The Promoter would use these steps to modify the sanction plan or project specification:
- Note of proposed plan or project specification details original and proposed updated Regulatory approvals, financial feasibility, allottee acceptance, and plan or project specification revision.
- Inform landowners (JDA project) of proposed changes to sanctioned designs and project specifications. Write the consensus.
- Inform project allottees of proposed changes to sanctioned plans and specifications. This communication will include previous and proposed details.
- Obtain 2/3rds project allottee consent.
- Apply to several NOCs or governmental agencies for plan and project specification amendment permission.
- Modify the plan with planning authorities.
- Notify bankers, lenders, and other stakeholders of plan modification approval.
- Submit application, alteration details, and supporting papers to RERA Authority for plan modification approval.
- The authorities will approve plan changes, firstly Authority may ask for a hearing before approval then Verify 2/3rdConsent before application approval and at last Publish amended facts on Authority’s Website portal.
Reference in WB RERA Rules
Clause 6 of WB RERA’s Agreement to Sell—Project/Apartment Construction— The Allottee has looked over the details of the [Apartment/Plot] and agreed to the Payment Plan, floor plans, and layout plans that were approved by the necessary authorities and added to this Agreement by the Promoter. The Promoter will build the Project according to plans for the structure, floors, and specifications. If you follow the rules in this Agreement.
The Promoter agrees to stick to the plans that have been accepted by the right authorities and to follow the rules to the letter. Promoter won’t be able to change, change up, or adjust these plans in any way other than what is allowed by the Act. If the Promoter breaks this rule, it will be a major breach of the deal.
Takeaway
Home buying is a big step towards realizing bigger and long-term goals in life. Before the RERA Act, 2016, went into effect, there were worries about the imposition of rules that let developers change, revise, and amend the original layouts and plans as they saw fit. When this happened, the people who had their money taken away had no choice but to agree to the terms and conditions that favoured the developers.
But after the RERA Act of 2016 was passed, home buyers could finally take a deep breath and felt better because of its rules. You have now become wise and knowledgeable insights about RERA modification and sanctioned plans for the benefit of buyers.
