RERA Does Not Prescribe Mandatory Or Uniform Format For Sale Deed: Telengana RERA

The Telangana Real Estate Regulatory Authority (TG-RERA) has dismissed a complaint seeking interest on Rs 62.5 lakh refunded by a developer, holding that an allottee cannot insist on a particular drafting format of a sale deed in the absence of a statutory mandate under the Real Estate (Regulation and Development) Act, 2016.

The Authority noted that while the Act prescribes a model format for an Agreement for Sale, neither the Act nor the Telangana Rules prescribe any mandatory format for a sale deed.

Clarifying the position, the Authority held, "At the outset, this Authority finds it necessary to observe that neither the RE(R&D) Act, 2016 nor the Telangana RE(R&D) Rules, 2017 prescribe any mandatory or uniform format for a Sale Deed. The statutory framework under RERA provides a model format only for the Agreement for Sale, with the object of ensuring transparency at the pre-conveyance stage. The Sale Deed, being an instrument of conveyance, is governed primarily by the applicable laws, and the contractual understanding between the parties. Therefore, the contents and structure of the Sale Deed necessarily flow from the terms agreed between the parties, subject to compliance with general registration requirements and in accord with RE(R&D) Act provisions, and an allottee cannot insist upon incorporation of matters which are not statutorily mandated."

The bench comprising Chairperson Dr. N. Satyanarayana and Members K. Srinivasa Rao and Laxmi Narayana Jannu while considering a homebuyer's complaint, observed that the dispute arose from objections raised by the allottee to the contents of the draft sale deed and did not disclose any violation of statutory provisions.

It observed, “Upon a cumulative consideration of the above, this Authority finds that the objections raised by the Complainant pertain predominantly to drafting preferences and interpretational differences rather than to demonstrable violations of statutory provisions. While an allottee is entitled to clarity and transparency, such entitlement cannot be extended to insist upon a particular drafting format in the absence of a statutory mandate or express contractual stipulation"

The complainant had booked a flat in the “Candeur-40” project in Hyderabad developed by Candeur Developers & Builders and paid Rs 62.5 lakh out of the total sale consideration of Rs 93.69 lakh. A dispute arose after the buyer objected to the draft sale deed and sought changes which the developer declined to incorporate, following which the buyer sought a refund with interest and filed a complaint under Section 31 of the Act.

The developer contended that the draft sale deed complied with the agreement and applicable law and that the objections had no statutory basis.

Noting that the developer had already refunded the entire amount of Rs 62.5 lakh and that no statutory violation was established, the Authority held that the complainant was not entitled to interest.

The complaint was dismissed, and the developer's counter-claim was also rejected.

For Complainant (Ravi Kumar Anchoori): Complainant appeared in person through GPA holder Anchoori Yadagiri.

For Respondent (M/s Candeur Developers & Builders): Advocates KRK Chary, B. Suresh, S. Ganesh Bharadwaj, K. Vivekanand.