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Sunday, 16 May 2021

An unregistered project shall be considered at par with the project of which the registration has been cancelled otherwise the protection to association of allottees under section 8 will not be available to allottees

 In the Matter of Sabiha and Ors vs Anil Jindal, SRS Real Infrastructure Complaint no.14 of 2019 decided on 30.07.2019 before Haryana Real Estate Regulatory Authority Panchkula

  • It was held by the Authority that allottees of the project have formed an association (RWA in brief) and got it registered under the Haryana Registration and Regulation of Societies Act, 2012. 

  • RWA has estimated that an amount of about Rs. 6.5 crore has to be incurred to complete the project. The association having fulfilled all the tasks assigned to it by the Authority has a right to take over the project for completing it themselves and respondents were restrained for creating any third party interest in the project. 

  • The project was unregistered as promoters failed to register the complaint and violated the mandate of section 3 of the Act and section 7 was applicable which deals with revocation.

  •  The Authority in its order held that when a promoter fails to register the  project despite clearly being aware that he should do so, such projects must be treated at par with the projects of which the registration is cancelled by the Authority. 

  • Not taking this view will create an anomalous situation and would adversely jeopardize the interest of the allottees of the project of which the promoters are deliberately refusing to finish the project. 

  • Not taking such a view would also amount to saying that the protection of Section 8 is not available to the Allottees of an unregistered project. In the considered view or this Authority an unregistered project shall be considered at par with the project of which the registration has been cancelled. Having said so, now the protection of Section 8 must be granted to the allottees of the present project of the respondent.

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