Sunshine Builders Pvt. Ltd. launched a residential project named Green Valley Residency in 2023 comprising 120 apartments on 2,000 sq. meters of land. The promoter started advertising the project through brochures and on

CS Executive · Economic, Commercial and Intellectual Property Laws · PYQS · June 2026
Sunshine Builders Pvt. Ltd. launched a residential project named Green Valley Residency in 2023 comprising 120 apartments on 2,000 sq. meters of land. The promoter started advertising the project through brochures and online portals, promising possession within 24 months and highlighting amenities such as a clubhouse and landscaped gardens. The promoter accepted booking amounts up to 20% of the apartment cost from several buyers without executing a registered agreement for sale. Some buyers paid advances based solely on the advertisement and model flat displayed at the site office. Sunshine Builders applied for registration of the project before the Real Estate Regulatory Authority (RERA) but failed to disclose certain pending litigation relating to the title of the land. The Authority did not communicate approval or rejection within 30 days. Meanwhile, the promoter continued construction and marketing activities. After two years, the project remained incomplete and possession was delayed by 12 months beyond the promised date. Further, certain promised amenities were not constructed. Devendra, an allottee, decides to withdraw and seek refund, while another allottee, Surendra, wants possession along with compensation for delay. The promoter has also neither executed conveyance deeds nor handed over the common areas despite obtaining the occupancy certificate. Aggrieved allottees have now approached RERA seeking relief. Based on above facts, answer the following under the Real Estate (Regulation and Development) Act, 2016: What remedies are available to a buyer under Section 12 of the Act, if the advertisement, prospectus or model flat contains false or incorrect representations?

Answer & Explanation:

Section 12 of the Real Estate (Regulation and Development) Act, 2016 provides remedies to the buyer. Where any person makes an advance or a deposit on the basis of the information contained in the notice advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided under the Act. If the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, or the model apartment, plot or building, as the case may be, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under the Act.

Topics: Real Estate Law

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