Tribunal upholds penalty on promoter for non-registration of real estate project

GUWAHATI: The Assam Real Estate Appellate Tribunal (REAT) has upheld an order of Real Estate Regulatory Authority, Assam, imposing a penalty of Rs 2 lakh on a promoter for not registering a real estate project.

The appellant was found to have violated sub-section (1) of section 3 of the Real Estate (Regulation and Development) Act, 2016 under which it was required to apply for registration of the project.

Disposing of the appeal filed against the order of RERA, the tribunal noted in its order that the construction development of the project, namely, ‘Mayfair Kamakhya’, commenced in November 2016.

It is an ongoing project, and till date, 90 per cent of the work has been completed.

According to the first proviso to sub-section (1) of Section 3 of the Real Estate (Regulation and Development) Act, 2016, promoters of such ongoing projects were mandated to apply to RERA for registration. But the promoter in this present case did not do so.

The Tribunal also drew attention to sub-rule(1) of Rule 4 of the Assam Real Estate (Regulation and Development) Rules, 2017 with stipulates that upon the notification for commencement of sub-section (1) of section 3, promoters of all ongoing projects which have not received occupancy certificates are required to make an application to the Real Estate Regulatory Authority for registration.

The Tribunal pointed out that the appellants continued to enter into agreements for sale of the apartments without endeavouring to make an application for registration of their project.

It expressed dismay over the fact that the appellants have not yet made an application for registration of the project despite a clear direction by RERA Assam to do so within 15 days.

Observing that it finds no reason to interfere with the order passed by RERA Assam, the Tribunal upheld the penalty of Rs 2 lakh imposed on the promoter.

The order was passed on Friday by Justice (retired) Manojit Bhuyan, chairperson of Assam REAT and Onkar Kedia, member, Assam REAT.

In another case recently, the Assam REAT had asked RERA, Assam to take necessary steps to ensure that all new and ongoing real estate projects within its jurisdiction, except those exempted under the Real Estate (Regulation and Development. Act, 2016, have made application for registration with RERA, Assam and/or are duly registered.

“Such new and ongoing projects which have not made application and are clearly in default be appropriately dealt with and penalised in strict terms of the Act,” the tribunal directed.

It further observed that sufficient power vests with the regulatory authority under Section 35 of the Act to proceed suo motu and to call upon any promoter at any time to furnish in writing such information or explanation relating to its affairs as the authority may require and also to appoint one or more persons to make inquiry in relation to the affairs of any promoter.

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