February 22, 2024: The Uttar Pradesh RERA (UP RERA) in a bid to ensure that the settlement between buyer and developer is smooth has released a set of guidelines.
The UP regulatory authority mentions that there have been instances when during the hearing, the promoters and the allottees file for mutual settlement thus, asking for disposal of the case. However, later the parties don’t honour the established rules and also deny settlements.
New guidelines
Under the guidelines issued on February 2, 2024:
- It is compulsory to execute the mutual settlements on a non-judicial stamp paper of Rs 100.
- The stamp paper should be notarised and signed by the promoter’s director, MD or CEO. It should also include the signature of the allottee.
- The stamp paper will include signature of one witness from both the promoter and the allottee.
- The terms of the settlement should be clearly listed in the stamp paper and should not be contradicting the provisions of applicable law and public policies.
- The settlements submitted by the promoters will be uploaded on UP RERA portal and the regulatory body will also verify the same through its offices.
- Also, if any of the parties are not available for physical verification they have to communicate it through email within a deadline. Further proceedings will be conducted only after this. Failure to do so will translate that the party has consented for the settlement on its free will.
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