Section 4(2)(l)(C) of the RERA Act requires the promoter to submit an affidavit specifying the project completion timeline, which is based on factors like permissions and project planning. The agreed date of possession in the contract is determined after considering these factors and is separate from the promoter's declaration under Section 4. The delay assessment is based on the date specified in the agreement, not solely on the promoter's declared timeline. ["Sanvo Resorts Pvt. Ltd. VS Shital Nilesh Deshmukh - Bombay"]
The promoter must adhere to the scheduled project completion timeline, even if extensions are granted due to force majeure or economic conditions, such as demonetization or COVID-19. Progress reports and quarterly updates indicate the promoter's intention to complete the project, and in cases of delay, allottees may claim refunds under Section 18. Extensions granted do not alter the original contractual completion date unless formally approved. ["Complaint No. RAJ-RERA-C-2022-5342 Kuldeep Singh Chandela Vs. DC Agarwala and Co Pvt. Ltd. - Real Estate Regulatory Authority"], ["Complaint No. RAJ-RERA-C-2022-5342 Kuldeep Singh Chandela Vs. DC Agarwala and Co Pvt. Ltd. - Real Estate Regulatory Authority"]
Section 4(2)(I)(D) emphasizes that funds collected must be used solely for the registered project’s completion, and the promoter’s post-completion obligations, including marketing unsold units, continue until the project is fully completed and all obligations are fulfilled. The promoter is responsible for timely completion and must follow prescribed procedures for extensions and registration validity. ["Complaint No. RAJ-RERA-C-2022-5342 Kuldeep Singh Chandela Vs. DC Agarwala and Co Pvt. Ltd. - Real Estate Regulatory Authority"]
The change of promoter under Section 15 is permissible if the original promoter fails to complete the project within the declared timeline. The registration’s validity is linked to the estimated completion date declared at registration, and failure to complete within this period, without seeking extensions, leads to penalties or cancellation. Delays due to force majeure require formal extension applications; otherwise, the original completion date remains enforceable. ["Complaint No. RAJ-RERA-C-2022-5342 Kuldeep Singh Chandela Vs. DC Agarwala and Co Pvt. Ltd. - Real Estate Regulatory Authority"], ["Complaint No. RAJ-RERA-C-2022-5342 Kuldeep Singh Chandela Vs. DC Agarwala and Co Pvt. Ltd. - Real Estate Regulatory Authority"]
Promoters are mandated to apply for project registration within the prescribed time, and the registration is valid until the completion date declared at registration unless extended properly. If the project remains incomplete beyond the validity period without extension, authorities can take action, including penalties or cancellation. Completion certificates obtained within the validity period affirm project completion, but failure to do so can result in notices and penalties. ["IFCI Infrastructure Development Limited VS Kerala Real Estate Regulatory Authority - Kerala"], ["Complaint No. RAJ-RERA-C-2022-5342 Kuldeep Singh Chandela Vs. DC Agarwala and Co Pvt. Ltd. - Real Estate Regulatory Authority"]
Analysis and Conclusion:The legal framework under RERA mandates that the project completion date specified in the agreement, based on the promoter’s declaration under Section 4(2)(l)(C), is the primary reference point for assessing delays and obligations. While extensions can be granted for force majeure or other valid reasons, these must be formally applied for and approved. The promoter’s responsibility to complete the project within the declared timeline is strict, and failure to do so can lead to penalties, cancellation, or refund claims by allottees. The date of project completion in the agreement, along with proper adherence to registration validity and extension procedures, forms the core of the judgment regarding time validity dependent on the promoter.
