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Which of the following is correct in relation to the promoter failing to complete the project within…

Under Section 18(1) of the Real Estate (Regulation and Development) Act, 2016, if the promoter fails to complete or is unable to give possession of an apartment, plot, or…

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Which of the following is correct in relation to the promoter failing to complete the project within the stipulated time in the agreement for sale?

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Answer and explanation

Correct answer D

Under Section 18(1) of the Real Estate (Regulation and Development) Act, 2016, if the promoter fails to complete or is unable to give possession of an apartment, plot, or building in accordance with the terms of the agreement for sale by the date specified therein, and the allottee wishes to withdraw from the project, the promoter is liable on demand to return the amount received in respect of that apartment, plot, or building along with interest at the prescribed rate as well as compensation in the manner provided under the Act. Furthermore, under the proviso to Section 18(1), where an allottee does not intend to withdraw from the project, the promoter is liable to pay interest for every month of delay until the handing over of possession. Because returning the amount on demand, paying interest, and paying compensation are all statutory liabilities of the defaulting promoter under Section 18(1), all of the given options are correct.

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