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CS Executive · Economic, Commercial and Intellectual Property Laws · Real Estate Regulation and Development Law

Anand Estates, a promoter, receives a written direction from the Authority regarding a compliance matter in its registered project. Anand Estates argues the direction is only advisory. What is the legal position under the Act?

The direction is binding. Under Section 37 the Authority may issue directions to promoters, allottees or real estate agents for discharging its functions, and these directions bind all concerned. They are not advisory and need no Central Advisory Council endorsement.

  1. ADirections issued by the Authority to promoters, allottees or agents are binding on all concernedCorrect
  2. BDirections are binding only on real estate agents
  3. CDirections are binding only if the Central Advisory Council endorses them
  4. DDirections are merely recommendatory to the promoter

Explanation

Section 37 empowers the Authority to issue directions to promoters, allottees or real estate agents as it considers necessary for discharging its functions, and says such directions are binding on all concerned. The Council's endorsement is not required.

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