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Importance of Sanctioned Plan in RERA Act

Navdisha Sehgal

| Updated: Mar 06, 2021 | Category: RERA Registration

Importance of Sanctioned Plan in RERA Act

Before the introduction of RERA Act, 2016, the developers amend the original layout and sanction plans as per their convenience, because of which the homebuyers often felt cheated and their payment blocked in the under construction flats. Now, with the introduction of RERA Act, 2016, the developers have to abide by the sanctioned plan submitted to the authority.

What is RERA?

RERA stands for Real Estate (Regulation and Development) Act. The act was enacted in the parliament in May 2016 and came into force from 1st May, 2017. RERA is an act for regulation and promotion of the real estate sector to ensure the sale of apartments, plot or building in an efficient and transparent manner. Also, the Act aims to protect the interest of consumers.

RERA is expected to bring relief to homebuyers as it will bind builders for timely delivery and to protect buyers from fraud sellers. The Act will help developers to gain customers, as it will increase the confidence amongst the consumers to invest in the projects, because of regulation.

It is mandatory for developers to get approval from the RERA regulatory authority of the respective states and the developers must disclose all the information thereto.

RERA regulatory authority will provide a registration number to all the real estate agents, which is to be mentioned in every property sale they make. This will help in eliminating the possibility of misleading the purchaser.

What is Sanctioned Plan?

As per Section 2(zq) of the RERA Act, 2016, ‘sanctioned plan’ means:

  • Site plan
  • Service plan
  • Building plan
  • Parking and circulation plan
  • Landscape plan
  • Layout plan
  • Zoning plan
  • And such other plan.

It also includes structural designs permissions such as environment permission, etc., approved by the competent authority before the commencement of the real estate project.

Importance of sanctioned plan

Before the enactment of RERA, developers were vandalizing the Real Estate sector by imposition of certain terms and conditions according to their whims and fancies. It allowed the developers to alter, change, and amends the original layout and sanctioned plan to their own convenience. This puts the client and their money stuck with an under construction project and the only option left with them is to adhere to the terms and conditions laid by the developers.

Soon after Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted, it became mandatory for the developers to abide by the sanctioned plans, layout plans and specifications, as laid out in the original plan approved by RERA authority. Along with this, the developers are supposed to adhere by the specified nature of fixtures, fittings and amenities agreed upon between ten buyers and the developers. However, the provisions allow the developer to make minor changes if required.

Can the structural changes be made in the Sanctioned Plan?

The act specifies that any structural changes, including the following, don’t come within the explanation of minor changes:

Structural changes in the Sanctioned Plan
  • Addition to the area
  • Change in height
  • Removal of part of a building
  • Construction or removal or cutting into of any wall or partition, column, beam, floor
  • Change to or closing of any required means of access
  • Change to the fixtures or equipment

Any structural changes as well as the changes mentioned earlier, maybe done in the sanctioned plans and layout by the developers only with the prior consent of at least 2/3rd of the allottees.

Also, after the introduction of the RERA Act, the allottee is allowed to claim compensation against any structural defect within five years, if brought into the notice of the developer.

Provisions regarding Sanctioned Plan

Section 4 (2) (d)

  • The promoter has to attach some documents while applying for the registration of the project.
  • The document includes sanctioned plan, layout plan, and other specifications of the proposed project and the whole project sanctioned by the authority.

Section 11 (3) (a)

  • The promoter is duty bound to provide the sanctioned plans, layout plans along with the specifications, approved by the competent authority to the allottee, at the time of booking and issuing the allotment letter.

Section 14 (1)

  • The promoter must adhere to the sanctioned plans and layout plans approved by the competent authority.
  • The proposed project has to be developed and completed by the promoter in accordance with sanctioned plans, layout plans and other specification, approved by the authority.

Section 14 (2)

  • The promoter is not allowed to make any alterations, additions, or changes in the approved sanctioned plan and layout plan without written consent of the owner of the flat.
  • Also, any alterations, or additions in the sanctioned plan or layout plan and the common areas of the building, cannot be made unless the 2/3rd of the allottees other than the promoter agreed to this.
  • Thus, a developer is duty bound to adhere to the approved plans during the construction and cannot deviate from them.

Section 19 (1) & (5)

  • The allottee is entitled to get the information relating to sanctioned plans, layout plans along with the specifications, which is approved by the competent authority.
  • The allottee is entitled to get all other information provided under the ACT or the rules and regulations or agreement of sale with the promoter.
  • If the promoter fails to comply, then the allottee has a right to withdraw from the project and will be liable to pay the entire amount paid by the allottee with the applicable interest.

Conclusion

Before the implementation of RERA Act, 2016[1], developers used to alter and amend the terms and conditions as per their convenience, leaving the allottees helpless.

However, after the enactment of the RERA Act, 2016 the buyers feels safer and be assured against the one sided terms and conditions imposed by the developers.

Read our article: Timeline Extension in RERA: A Pro Developer

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Navdisha Sehgal

Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.

Business Plan Consultant


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