Rights and Duties of Allottee under Section 19 RERA

Rights and Duties of Allottee under Section 19 RERA

I. Meaning

Allottee: A person to whom a plot, apartment, or building is allotted by a promoter or real estate developer under a real estate project.

Section 19 of RERA, 2016 governs rights and duties of allottees in registered real estate projects.

Key Principle:

RERA balances promoter’s obligations with allottee’s rights, ensuring transparency, timely possession, and legal protection.

II. Rights of Allottee (Under Section 19)

Right to Timely Possession

Allottee is entitled to possession as per the agreed date in the agreement.

Promoter cannot delay delivery without compensation.

Right to Refund in Case of Default

If the promoter fails to deliver possession within time or violates terms:

Allottee can claim refund with interest.

Right to Information and Transparency

Right to access project approvals, plan, and legal documents from the promoter.

Promoter must disclose ongoing liabilities, encumbrances, and approvals.

Right to Claim Compensation

In case of delays or deficiencies, allottees are entitled to compensation as per Section 18 and 19(2) RERA.

Right to Complaint with RERA Authority

Allottee can file complaints with state RERA authority for promoter’s default.

III. Duties of Allottee (Under Section 19)

Payment of Agreed Price

Duty to pay installments or total price as agreed in the allotment agreement.

Compliance with Agreement Terms

Must adhere to rules, bylaws, and specifications outlined in the agreement.

Cooperation in Documentation

Duty to execute necessary documents for registration, mortgage, or mutation of property.

Timely Response

Respond promptly to promoter’s communications regarding approvals, handovers, or completion notices.

IV. Case Laws

Lodha vs. Union of India (2019)

Court held that allottee has right to timely possession, and promoters must pay interest for delays.

RERA Authority Maharashtra vs. Kolte Patil Developers (2020)

Allottee entitled to compensation for project delay, enforcing Section 19 rights.

Real Estate Regulatory Authority, Karnataka vs. Prestige Estates (2018)

Duty of allottee to pay agreed installments on time emphasized; non-payment may affect possession rights.

V. Key Principles

AspectPrinciple
Right to PossessionTimely handover as per agreement
Right to Refund & CompensationFor delays or promoter default
Right to TransparencyAccess project approvals, documents, and disclosures
Duty to PayAllottee must pay agreed installments
Duty to ComplyFollow terms of agreement and cooperate with formalities

VI. Practical Importance

Protects Allottee Interests: Legal remedy in case of delays or defaults.

Ensures Financial Discipline: Duty to pay installments ensures project cash flow.

Transparency in Real Estate Projects: Allottee can access plans, approvals, and progress updates.

Enables Legal Action: Rights enforceable under RERA Authority and consumer forums.

VII. Conclusion

Section 19 RERA defines mutual rights and duties of allottees to ensure timely possession, transparency, and fair play in real estate.

Courts have consistently reinforced:

Allottee’s right to possession, refund, and compensation.

Allottee’s duty to pay and comply with agreement terms.

Balances promoter’s obligations and allottee’s protection, ensuring trust and accountability in real estate transactions.

⚖️ Exam Tip:

Start with definition of allottee.

Explain rights under Section 19.

Explain duties under Section 19.

Cite 2–3 case laws.

Conclude: Section 19 ensures allottee protection and accountability in real estate projects.

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