October 04, 2018
RERA- In a recent case, the Two-Judge Bench of the Supreme Court elaborated on an essential aspect of Development Agreements and emphasized on the need to display sanction plan/layout plans at the site of the developer, apart from any other manner provided by the Regulations made by the Authority.
Case name: Ferani Hotels Pvt. Ltd. V. The State Information Commissioner Greater Mumbai & Ors.
In this case, the intrinsic issue that fell for consideration before the Supreme Court was the disclosure under the Right to Information Act, 2005 seeking information regarding the plans submitted to public authorities by a developer of a project.
The Two-Judge Bench of the Supreme Court while pronouncing its verdict in the case made the following essential observations pertaining to Real Estate (Regulation and Development) Act, 2016 (RERA) and also the necessity to disclose all information in relation to a development project by the Developers.
- The Bench noted that the duties of promoters and developers are more elaborate, as under Section 11(1) of the RERA the promoter has to create his web page on the website of the Authority and enter all details of the proposed project as provided under sub-section (2) of section 4, in all the fields as provided, for public viewing.
- That the promoter, in terms of sub- section (3) of Section 11 of the RERA is required to make available to the allottee information about sanctioned plans, layout plans along with specifications, approved by the competent authority, by display at the site or such other place as may be specified by the Regulations made by the Authority. The Court emphasized on the fact that the whole object of RERA is clearly to bring greater transparency.
- The Supreme Court also opined that the fate of purchase of land development and investments is a matter of public knowledge and debate. Thus, any judicial pronouncement must squarely weigh in favour of the fullest disclosure, in this behalf.
- The Bench also stated that keeping in mind the provisions of RERA and their objective, the developer should mandatorily display at the site the sanction plan. The provision of sub-section (3) of Section 11 of the RERA require the sanction plan/layout plans along with specifications, approved by the competent authority, to be displayed at the site or such other places, as may be specified by the Regulations made by the Authority.
- The Supreme Court has also advised that in view of rampant violations of the provisions it is advisable to issue directions for display of such sanction plan/layout plans at the site, apart from any other manner provided by the Regulations made by the Authority. This aspect should be given appropriate publicity as part of enforcement of RERA.
The entire case can be accessed here.