Examine the following circumstance in light of the Real Estate (Regulation and Development) Act, 2016. Vivaan booked a 4 BHK apartment in the Flower Valley development for ₹ 2 crore. Jiyu is in charge of directing the pr

Section 13 of the Real Estate (Regulation and Development) Act, 2016 (the Act) provides the provisions relating to "No deposit or advance to be taken by promoter without first entering into agreement for sale". Section 13(1) of the Act states: A promoter shall not accept a sum more than ten per cent. of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force. In the given case, the cost of apartment is ₹ 2 Crore, and Jiyu stipulated that an application fee of ₹ 50 Lakhs be paid prior to entering into a signed agreement for sale with Vivaan. This is not valid, as a promoter is only permitted to accept ₹ 20 lakh (10% of ₹ 2 Crore) as an advance or application fee before entering into a signed agreement for sale.