Know Rera: Builders, agents vi­o­lat­ing Act can be fined, jailed

Hindustan Times (Chandigarh) - Estates - - HT ESTATES - Mu­niesh­wer A Sa­gar mu­niesh­wer.sa­gar@hin­dus­tan­times.com

Bar ring di­lu­tion by the state gov­ern­ments, the Real Estate( Reg­u­la­tion and De­vel­op­ment) Act 2016, will make it eas­ier for the home buyer to get jus­tice against the de­fault­ing builders and real estate agents.

The Act stip­u­lates strict pun­ish­ment for vi­o­la­tion of the pro­vi­sions of the Act and the rules made there un­der, and for the vi­o­la­tion of the buyer agree­ments. The real estate reg­u­la­tory author­ity (Rera) can take suo­motto(onits own) ac­tion against the builder in case a builder vi­o­lates the pro­vi­sions of the Act. A home buyer can also ap­proach Rera against the builder. Fur­ther, any per­son ag­grieved by any di­rec­tion or de­ci­sion or or­der made by the R era or by an ad­ju­di­cat­ing of­fi­cer un­der the Act can ap­peal be­fore the ap­pel­late tri­bunal hav­ing ju­ris­dic­tion over the mat­ter. In case un­sat­is­fied with the de­ci­sion of the tri­bunal, a per­son can file an ap­peal to the High Court, within a pe­riod of sixty days from the date of com­mu­ni­ca­tion of the de­ci­sion or or­der of the tri­bunal, to him.

VI­O­LA­TIONS AND PUN­ISH­MENTS

Both the builder and the real estate agents can be pun­ished the ac­tor the rules made there un­der. Builder vi­o­la­tions: Un­der Sec­tion 3 of the Act, no builder can ad­ver­tise, mar­ket book, sell or of­fer for sale, or in­vite per­sons to pur­chase prop­erty in any man­ner and in any project with­out reg­is­ter­ing with the Rera. In case of vi­o­la­tion of the pro­vi­sions un­der this sec­tion, the buyer can ap­proach the Rera or it can ini­ti­ate suo-motto ac­tion against the builder. If found guilty of vi­o­la­tion, the builder is li­able to a penalty, which may ex­tend up to 10% of the es­ti­mated cost of the real estate project as de­ter­mined by the Rera. If the builder does not com­ply with the or­ders, de­ci­sions or di­rec­tions is­sued or con­tin­ues to vi­o­late the pro­vi­sions of Sec­tion 3, it can be pun­ished with im­pris­on­ment for a term which may ex­tend up to 3 years or with a fine which may ex­tend up to a fur­ther 10% of the es­ti­mated cost of the real estate project, or with both.

The Act, un­der Sec­tion 4, makes it manda­tory on the part of the builder to regis­ter his project with the Rera. If a buyer dis­cov­ers that the builder has given false in­for­ma­tion or has con­tra­vened the pro­vi­sions of Sec­tion 4, then it can com­plaint to the Re ra. If found guilty of the charges, the builder is li­able to a penalty which may ex­tend up to 5% of the es­ti­mated cost of the real estate project, as de­ter­mined by the Author­ity.

If the builder con­tra­venes any other pro­vi­sions of Act, other than that pro­vided un­der Sec­tion 3 or Sec­tion 4, or the rules or reg­u­la­tions made there un­der, it is li­able to a penalty up to 5% of the es­ti­mated cost of the real estate project.

If any builder, fails to com­ply with, or con­tra­venes any of the R era or­ders or di­rec­tions, it is li­able to a penalty for ev­ery­day dur­ing which such de­fault con­tin­ues, which may cu­mu­la­tive ly ex­tend up to 5%, of the es­ti­mated cost of the realestate project. If a builder doesn’t ad­here to the tri­bunal di­rec­tions then he can be pun­ished with im­pris­on­ment for a term which may ex­tend up to 3 years or with a fine for ev­ery day dur­ing which such de­fault con­tin­ues, which may cu­mu­la­tive ly ex­tend up to 10% of the es­ti­mated cost of the real estate project, or with both.

Real estate agent vi­o­la­tions: In the past, buyers found it dif­fi­cult to fix the ac­count­abil­ity and re­spon­si­bil­ity of the real estate agent. Un­der the Act, the role and func­tions of the real estate agent are clearly de­fined. Forin­stance, un­der Sec­tion 9 of the Act, a real estate agent has to regis­ter him­self with the Rera and with­out reg­is­tra­tion it can­not fa­cil­i­tate the sale or pur­chase of or act on be­half of any per­son to fa­cil­i­tate the sale or pur­chase of any prop­erty in a real estate pro­jec­tor part of it be­ing sold by a builder.

Ear­lier buyers had re­course only to crim­i­nal and civil court in case an agent fraud­u­lent ly fa­cil­i­tated the sale or pur­chase of a prop­erty.

Now, as per Sec­tion 10 of the Act, an agent can’t fa­cil­i­tate the sale or pur­chase of any prop­erty in a project un­reg­is­tered with the Rera. It is also manda­tory on the part of the agent un­der Sec­tion10, to fa­cil­i­tate the pos­ses­sion of all the in­for­ma­tion and doc­u­ments, as the buyer, is en­ti­tled to, at the time of book­ing of any prop­erty.

In case a buyer dis­cov­ers that the agent has vi­o­lated the pro­vi­sions of sec­tions 9 and 10 of the Act, it can ap­proach the Rera. If the agent is found in con­tra­ven- tion of these sec­tions of the Act, it is li­able to a penalty of ₹10,000 for ev­ery day dur­ing which such de­fault con­tin­ues, which may cu­mu­la­tively ex­tend up to 5% of the cost of plot, apart­ment or build­ings, as the case may be, of the real estate project, for which the sale or pur­chase has been fa­cil­i­tated.

In in­stances where the agent fails to com­ply with the Rera or­ders or di­rec­tions, it is li­able to a penalty for ev­ery day dur­ing which such de­fault con­tin­ues, which may cu­mu­la­tive ly ex­tend up to 5% of the es­ti­mated cost of prop­erty for which the sale or pur­chase has been fa­cil­i­tated. For vi­o­la­tion of tri­bunal or­der or di­rec­tions, an agent can be im­pris­oned for up to 1 year or with fine for ev­ery day dur­ing which such de­fault con­tin­ues, which may cu­mu­la­tive ly ex­tend up to 10% of the es­ti­mated cost of the prop­erty.

MAK­ING BUYERS FOL­LOW THE RULES

In case the buyer fails to com­ply with or­ders of Re ra, it is li­able to a penalty for the pe­riod dur­ing which such de­fault con­tin­ues, which may cu­mu­la­tive ly ex­tend up to 5% of the prop­erty. In case he con­tra­venes the tri­bunal or­ders, he can be im­pris­oned for up to 1 year or with fine up to 10% of prop­erty cost or both

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