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

The Authority issued a direction to Skyline Builders, a promoter, to comply with certain obligations. Skyline argues the direction is only advisory because it was issued 'for discharging functions' and not by a court. Which statement is correct under the Act?

The Authority may issue directions to promoters, allottees or real estate agents as necessary for discharging its functions, and these directions are binding on all concerned. They need no confirmation by government or the Central Advisory Council, so Skyline's claim that the direction is merely advisory fails.

  1. AThe direction is advisory unless confirmed by the appropriate Government
  2. BThe direction binds only the promoter named and not allottees or agents
  3. CThe Authority may issue directions to promoters, allottees or real estate agents as it considers necessary for discharging its functions, and such directions are binding on all concernedCorrect
  4. DThe direction is binding only after the Central Advisory Council approves it

Explanation

Section 37 allows the Authority, to discharge its functions, to issue directions from time to time to promoters, allottees or real estate agents as it considers necessary, and states they are binding on all concerned. Neither government confirmation nor Council approval is required, and the power is not limited to promoters.

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