Legal Aspects Presentation

LEGAL ASPECTS OF
BUSINESS
BY:
AGNI GANGULY
AKASH SAINI
ADITYA PANDHARIPANDE
ANJALI KATARIA
AMAN LAKHWANI
AYUSHMAN RUDRA
Real Estate Regulatory Act
(RERA)
ALL UNDER ONE ROOF
• The Indian The Consumer

Contract Act 1872 Protection Act 1986
• 2. The Sale of
Goods Act 1930 4. The Companies
(Amendment) Act
• 3. The Negotiable 2015
Instrument
Act,1881
INTRODUCTION OF RERA
The Real Estate Regulatory Act, 2016 is an Act of the
Parliament of India which seeks to:
 protect home-buyers as well as help boost investments in the
real estate industry.
 The Act in each state for regulation of the real estate sector
and also acts as an adjudicating body for speedy dispute
redressal.
 The bill was passed by the Rajya Sabha on 10 March 2016 and
by the Lok Sabha on 15 March 2016.
 The Act came into force on 1 May 2016 with 59 of 92 sections
notified. Remaining provisions came into force on 1 May
2017.
The Consumer Protection Act, 1986 (COPRA)
The Consumer
Protection Act, 1986
Delay in delivery of possession
(COPRA) is an Act of 01 of Flats.
the Parliament of India Compensation payable on
enacted in 1986 to account of delay in delivery of
protect the interests of 02 possession
consumers in India . Promise and delivery of the

03 mentioned quality.
The act was passed in
Assembly in October Promise and delivery of product
1986 and came into 04 within the specified date.
force on 24 December The charges that is to be taken must

05 be clearly defined in the agreement.
1986
CASE ON CONSUMER PROTECTION
Disadvantages due to delay in delivery of possession
of flat
The Court stated that by delay in delivery of possession, the-interest
on investment made in the flats, supervision charges, watch and
ward expenses, administrative overheads go on mounting up.
Alterations in the project–In the case of Pankaj Agarwal &
Anr. v. DLF Gurgaon Home Developers , On complaint of the alleged
act, builder held a position of dominance in the relevant market of
services and made a stern advisory remark that it was the duty of
DLF Developers to disclose that it proposed to increase the number
of floors and apartments, so that the allottees could have taken
valid objections to it.
NEGOTIABLE INSTRUMENTS ACT
SUMMERY
One-Sided Agreements– The terms of the
Agreement are non-negotiable and a buyer even
if he does not agree to a term, there is no option
of modifying it or even deliberating it with the
Builder. This aspect has often been unfairly
exploited by the Builder, whereby the Buyer
imposes unfair and discriminatory terms and
conditions.
CASE ON NEGOTIABLE INSTRUMENT
Mr. Pankaj Agrawal v. DLF Gurgaon Home Developers Private Limited –
• The CCI took particular note of the development agreement mentioning
about change in its construction plans without giving any option to the
apartment buyers and termed it as abusive.
• The demanding additional payments on account of External Development
Charges/Infrastructure Development Charges etc. on the increased super
area of 2630 sq. ft. also amounted to abuse of dominant position as the
buyers were taken by surprise and they had no option but to succumb to
the pressures of the Opposite Party.
• Eventually, COMPAT order also held such unilateral increase to be abusive
as the only option left with the apartment buyers in such cases is to exit
which is a costly option.
SALE OF GOODS ACT
Today majority of home buyers are aggrieved by
the delay confronted in timely delivery of
projects. This inexplicable delay in delivery of
housing projects cripples the sole purpose of
investing in real estate and converts an asset
into liability. However, the good news is that this
oppression of delay in delivery of possession by
the builders have often been objurgated by the
Judiciary.
CASE ON SALE OF GOODS
ACT
• Brig( Retired ) Kamal Sood vs M/S. DLF universal ltd. (causing
delay due to delay in governmental permissions such as
approval of zoning plan , layout plan and schematic building
plan.
• This case raised some interesting issues before the National
Consumer Dispute Redressal Commission (NCDRC), for instance:
• NCDRC stated builder should obtain the requisite permissions
or sanctions such as sanction for construction, etc., in the first
instance, and, thereafter, recover the consideration money
from the purchaser of the flat/buildings.
FOREIGN EXCHANGE
MANAGEMENT ACT
A foreign company who wish to set up a liaison
office is prohibited from acquiring the
immovable property and can enter only a lease
agreement governed by the transfer of
property act and this lease should not be more
than 5 years of duration. This act is governed
by Foreign Exchange Management Act
BASIC LAWS EVERY
HOMEBUYER SHOULD
KNOW….
PURCHASE
The buyer has to approach the state Real Estate Regulatory
Authority (RERA) if the property is under-construction. In
case it is a ready-to-move-in flat, they have to approach
the district-level consumer dispute redressal tribunals.
Duties of the buyer.

A homebuyer who fails to comply with the orders of the RERA,
will have to pay a penalty for each day of the period of non
compliance.
REGISTRATION, RENTING, TRANSFER
• Registration: Till the property is not registered following the due procedure, the
buyer does not become the legal owner of the property. Rules related to property
registration are laid in the Indian Stamps Act, 1899.
• Renting: While the asset remains his, a landlord cannot enter the premises, says the
Act, without giving the tenant a written notice 24 hours. Landlords have to follow the
same process if they want to carry out any renovation work.
• Transfer: According to the Act, "property of any kind may be transferred" by a
person "competent to contract and entitled to transferable property, or authorized to
dispose of transferable property not his own". This could be done via sale, gift and
relinquishment.
CONCLUSION
The inference we can withdraw is that years back
we were left with only an option to file a case in
consumer court but after the advent of RERA, an
aggrieved homebuyer has now an option to initiate
legal proceedings against the errant
developer/builder in both RERA Forum as well as
Consumer Courts, but it has to be seen whether
these complaints are timely concluded and or some
relief is provided to the aggrieved homebuyer.
THANK YOU

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LEGAL ASPECTS OF

• The Indian The Consumer

consumers in India . Promise and delivery of the

force on 24 December The charges that is to be taken must

Duties of the buyer.

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