Section 8

Section 8 converts the regulatory sanction of revocation into a constructive relief mechanism — instead of simply punishing the promoter and leaving allottees in limbo, Section 8 creates a pathway for the project to be completed even after the promoter fails. **Two completion pathways:** 1. *Allottees' Association takes over* — the registered buyers form or use an existing Resident Welfare Association/Allottees' Association to manage completion of the remaining works. They can hire a new contractor, draw on the project escrow account (Section 4(2)(l)(D)), and complete the project for their own benefit. 2. *Competent authority completes* — government body (typically the local development authority) steps in to supervise and complete the project, recovering costs from the promoter's assets. **Bank guarantee recourse:** The promoter at registration must often furnish a bank guarantee — Section 8(c) gives the allottees' association the right to draw on this guarantee to fund completion. This is a critical financial mechanism. **The Amrapali precedent:** In the Amrapali cases (2019), the Supreme Court went beyond Section 8 and directed NBCC (a government construction company) to take over and complete the stalled Amrapali projects using Supreme Court-supervised funds. This executive intervention showed both Section 8's importance and its limitations when the financial hole left by a dishonest promoter is very large.