Revocation of registration of a Real Estate Project under THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016.
Revocation of registration of a Real Estate Project under THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016.
An
Act to establish the Real Estate Regulatory Authority for regulation and
promotion of the real estate sector and to ensure sale of plot, apartment or
building, as the case may be, or sale of real estate project, in an efficient
and transparent manner and to protect the interest of consumers in the real
estate sector and to establish an adjudicating mechanism for speedy dispute
redressal and also to establish the Appellate Tribunal to hear appeals from the
decisions, directions or orders of the Real Estate Regulatory Authority and the
adjudicating officer and for matters connected therewith or incidental thereto.
- THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016.
Whether prior registration of a Real
Estate Project under THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016,
mandatory?
Section 3(1) states that no promoter is allowed to
make any advertisement, market, booking, selling or offering for sale, or
invite persons to purchase in any manner any plot, apartment or building, as
the case may be in the real estate project or part of it without registering
the real estate project with the Real Estate Regulatory Authority established
under this Act. Therefore, it is mandatory for any promoter of the real estate
project to mandatorily register the project with RERA.
What about ongoing projects?
The projects that are ongoing on the date of
commencement of this Act and for which the completion certificate has not been
issued yet, it is the responsibility of the promoter of the real estate project
make an application to the Real Estate Regulatory Authority for registration of
the said project within a period of “three months” {3 months} from the date of
commencement of this Act.
When is registration of the real estate
project not required?
As per section 3(2), the promoter of the real estate
project is not required to register the project in the following circumstances:
1. The area of land proposed to be
developed does not exceed five hundred square meters (500 sq. meters), or the
number of apartments proposed to be developed does not exceed eight (8),
inclusive of all phases. [Provided that, if the appropriate Government
may, reduce the threshold below five hundred square meters or eight apartments,
if in the opinion of the government it is necessary, inclusive of all phases,
for exemption from registration under this Act]
2. The promoter of the real estate
project has received a completion certificate for a real estate project prior
to the commencement of this Act; since the completion certificate has been
received before the commencement of the Act, no registration is required.
3. When there is Renovation or Repair
or Re-development {RRR} which does not involve any kind of marketing,
advertising, selling or new allotment of any apartment, plot or building, as
the case may be, under the real estate project.
Every promoter shall make an application
to the Authority for registration of the real estate project in such form,
manner, within such time and accompanied by such fee as may be 1 [prescribed] -
Section 4 of The REAL ESTATE (REGULATION AND
DEVELOPMENT) ACT, 2016.
Grant of registration of a Real Estate Project by the authority.
On receipt of the application under sub-section (1)
of section 4, the Authority shall within a period of thirty days.
1] The authority shall “ GRANT ” the
registration subject to the provisions of this Act and the rules and
regulations made thereunder, and provide a registration number.
2] The authority shall “ REJECT ” the
application for reasons to be recorded in writing, if such application does not
conform to the provisions of this Act or the rules or regulations made
thereunder.
Provided that no application shall be rejected
unless the applicant has been given an opportunity of being heard in the matter
– Section 5 of The REAL ESTATE (REGULATION AND DEVELOPMENT)
ACT, 2016.
Revocation of registration of a Real
Estate Project under THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016.
The authority may,
1. On receipt of a complaint,
2. Suo motu (on its own), or
3. On the recommendation of the competent authority,
"Revoke" the registration
granted under section 5 of the aforesaid Act if:
(a) the promoter defaults in doing anything required
by or under this Act or the rules or regulations made thereunder;
(b) the promoter violates any of the terms or
conditions of the approval given by the competent authority;
(c) the promoter is involved in any kind of unfair
practice or irregularities.
(d) The promoter indulges in any fraudulent
practices.
What is “ Unfair Practice ” under
section 7 (1) (c) of THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016?
For the purposes of this clause, the term “unfair
practice means” a practice which, for the purpose of promoting the sale or
development of any real estate project adopts any unfair method or unfair or
deceptive practice including any of the following practices, namely:—
(A) the practice of making any
statement, whether in writing or by visible representation which,—
(i) falsely represents that the services are of a
particular standard or grade;
(ii) represents that the promoter has approval or
affiliation which such promoter does not have;
(iii) makes a false or misleading representation
concerning the services;
(B) the promoter permits the publication
of any advertisement or prospectus whether in any newspaper or otherwise of
services that are not intended to be offered;
The registration granted to the promoter
under section 5 shall not be revoked unless…….
Before revoking the registration, the authority
shall give notice to the promoter [not less than 30 days]. This notice shall be
in writing, such notice shall contain the grounds on which it is proposed to
revoke the registration, and has considered any cause shown by the promoter
within the period of that notice against the proposed revocation.
The Authority may, instead of revoking
the registration…….
The authority, taking into consideration the
interest of the allottees, instead of revoking the registration under sub
section (1), give permission for the registration to remain in force
subject to such terms and conditions as it think fit to impose and, such terms
and conditions so imposed shall be binding.
The Authority, upon the revocation of
the registration,—
(a) shall debar the promoter from accessing its
website in relation to that project and specify his name in the list of
defaulters and display his photograph on its website and also inform the other
Real Estate Regulatory Authority in other States and Union territories about
such revocation or registration;
(b) shall facilitate the remaining development works
to be carried out in accordance with the provisions of section 8;
(c) shall direct the bank holding the project bank
account, specified under sub-clause(D) of clause (l) of sub-section (2) of
section 4, to freeze the account, and thereafter take such further necessary
actions, including consequent de-freezing of the said account, towards
facilitating the remaining development works in accordance with the provisions
of section 8;
(d) may, to protect the interest of allottees or in
the public interest, issue such directions as it may deem necessary.
Article only for the purpose of education.
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