Property Sale, Housing Loans and The Fundamentals of Law

Property Sale, Housing Loans and The Fundamentals of Law

It has been explained in Union Bank of India v. Rajasthan RERA [2021] GCtR 3445 (Jaipur, Rajasthan) that in the event of direct conflict between the two central statutes giving overriding effect to the Act, ordinarily the subsequent legislation would prevail. As per S.11 of R E(R&D) Act, 2016 after a promoter executes an agreement for sale for any apartment, plot or building he shall not mortgage or create a charge on such apartment, plot or building and if any such mortgage or charge is made or created then notwithstanding anything contained in any other law for the time being in force, it shall not affect the right and interest of the allottee who has taken or agreed to take apartment, plot or building, as the case may be. RERA authority has the jurisdiction to entertain a complaint by an aggrieved person against the bank as a secured creditor if the bank takes recourse to any of the provisions contained in S. 13(4) of the SARFAESI Act, 2002.