Rs 1000 fine per day for sale of flats without project registration

The Maharashtra Real Estate Regulatory Authority (MahaRera) has imposed penalties for the non-registration of a residential project in Panvel. MahaRera imposed a fine of Rs 1000 per day, to be paid daily to the regulatory authority until the project obtains a registration number.

MahaRera also restrained the builder from advertising, marketing and booking flats for sale without obtaining Rera registration and has slapped an additional penalty of Rs 1 lakh for violation of rules.

The complainant in the case, Chandrakant Kamble had along with several others booked a flat in a project named 'Mytri Infrahousing Private Limited', located at

Devad in Panvel. He booked a flat in 2015 and paid Rs 7.5 lakh out of the Rs 15 lakh to be paid for it. However, no date for completion or possession was mentioned by the builder. The construction of the project commenced in 2013.

Appearing for the complainant, advocate Aditya Pratap argued that the developer's project was an ongoing project under section 3(1) of the RERA Act. Since the project had received a commencement certificate but not a completion certificate when the RERA Act came into force, the Builder was liable to register the project under section 4 of the RERA Act. He further argued that the builder had continued to solicit bookings despite not having RERA registrations.

Moreover, the complainants are also entitled to seek delayed interest payment under section 18 of the RERA Act. However, this would be possible only when the project received RERA registration. The advocate asked that orders be passed under section 59 of the RERA Act and that the builder be penalised for failing to register under RERA.