A blow of Rs. 1.77 crores on 13 builders by UP-RERA over non-compliance of orders
The whole environment is complex when it comes to compliance with orders in Real Estate. Laws framed by federal, state and local authorities impact every transaction undertaken. While most Realtors are aware of the main criteria, many fail to meet their compliance requirements.
Every state in the country presents its laws differently, wherein the principles are the master and following the master, every realtor’s duty. In India, RERA (Real Estate Regulatory Authority), established in 2016, presented every state to regulate the Real Estate sector to protect home-buyers by acting as an adjudicating body for speedy dispute resolution, providing proper information about the builder and ensuring transparency in projects.
The Real Estate (Regulation and Development) Act, 2016 passed by the Parliament of India also made it mandatory for developers in every state to post all information on issues as such project plans, layout, government approvals, land title status, schedule for completion with the State RERA and then in effect pass the information on to the consumers.
In addition to all the mandates, this Act specifies the rules and regulations and strictly adheres to penalizing those involved in non-compliance and imposing a fine which may extend up to 10% of the cost estimate of the real estate project.
In one such incident recently in Uttar Pradesh (UP) state, the UP-RERA slapped a combined penalty of Rs.1.77 crore on 13 Real Estate developers over non-compliance with its orders. The non-compliance related to issues like delay in handing over flats to buyers, refunds, submission of approved maps in group housing projects etc. were the reasons stated by UP-RERA secretary, Rajesh Kumar Tyagi.
The regulatory body said it has used its powers under section 38/63 of the RERA act which empowers to penalize the non-compliance with up to 5 per cent of the cost of the project. In this case, it directed the promoters to submit the compliance report of its orders within 15 days and deposit the penalty amount within 30 days, if failed the amount of penalty shall be recovered as arrears of land revenue.
Bottomline:
The RERA authority across all states of India is committed to protecting the interest of home buyers encouraging transparency, accountability and real estate discipline. In line with India’s vast and growing economy, where Real Estate Investment is an ever-increasing phenomenon, we at Indiassetz will not fail to bring you the latest news, updates and trends related to Real Estate.