Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Saturday 6 April 2019

RE: Attn : Shri Hardeep Singh Puriji


Two years ago , property buyers were , totally at the mercy of the builders / developers


After handing over a life's savings to a builder , thousands of buyers were left high and dry , even as the unscrupulous builders diverted the funds to purchase of more land - instead of completing the projects


In a few high profile cases, involving lakhs of crore of rupees, groups of buyers got together and filed cases against the builders in Consumer Courts or even High Courts


These cases are going on for years .


There is no early resolution , in absence of foolproof legal protection and one sided contracts ( property purchase agreements ) in favour of the builders


Only way out is for the Central Government to mandate a MODEL / STANDARD agreement under RERA , incorporating clauses listed below :



RERA : a case of UnReal Estate / UnReliable Builders  ?




Why is Supreme Court so unhappy with RERA ?


For reasons that you will find in following news reports :






But , beyond pointing out the obvious lacuna in purchase agreements between a property buyer and the seller , Supreme Court cannot “ order “ inclusion of the clauses in that contract, which can protect the buyers – the way it does in case of “ Leasing / Renting Agreement “ between a Lessor and a Lessee


In these agreement, if a lessee stops paying rent or refuses to vacate the rented premise when due, the law provides specific clauses under which courts can force an eviction


Some very similar clauses are required to be incorporated in “ Property Purchase Agreement “ , by suitably amending the RERA , when the Builder fails to handover the possession of a flat , despite the buyer having paid all the due installments in proper time 

I suggest incorporation of the following clauses :


[ A ]    Risk Purchase


[ B ]   Liquidated Damages



          Just as the builder may levy a penalty for delay in payment on your part, you can incorporate the penalty the
              builder must pay if he delays handing over the possession on schedule. 


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06  April  2019



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