Short Answer

Yes, escalation clauses in flat prices can be contested under RERA if the agreed price should apply.

Detailed Explanation

Rule 3(2) of the Gujarat RERA Rules states that the promoter must not charge more than the price agreed upon in the agreement for sale. This means that any escalation in flat prices beyond the agreed amount can be contested under RERA. If the buyer believes that the escalation clause is being misused to charge more than the agreed price, they can file a complaint with the Gujarat RERA Authority.

In practice, if a promoter tries to enforce an escalation clause resulting in prices higher than what was initially agreed upon, the buyer can refer to Rule 3(2) of the Gujarat RERA Rules to challenge this increase. The Gujarat RERA Authority will then investigate the matter and take necessary action to ensure that the agreed price is upheld.

For example, if a buyer enters into an agreement with a promoter for a flat at a certain price but later the promoter invokes an escalation clause to demand a higher amount, the buyer can file a complaint with the Gujarat RERA Authority citing Rule 3(2) to contest this increase. The Authority will then intervene to resolve the dispute and ensure that the agreed price is maintained.

Another scenario could be where a promoter includes an escalation clause in the agreement but later misuses it to significantly raise the flat prices beyond what was originally agreed upon. In such a case, the buyer can rely on Rule 3(2) of the Gujarat RERA Rules to challenge this escalation and seek redress through the regulatory authority.

Reference

• Gujarat RERA Rules, Rule 3(2): https://gujrera.gujarat.gov.in/