After witnessing inordinate delays in the project completion, the Real Estate Regulatory Authority (Rajasthan-RERA) gears up to issue more notices to developers and builders and promoters.
In the span of one month, the (Rajasthan-RERA) has already slapped notices to nearly 312 developers and new list of over 75 developers has been prepared who have failed to adhere to the self-set deadlines.
An official at RERA said, “The process to examine the reply of the developers who were issued notices before has started. Meanwhile, more notices have been issued to projects where deadline is lapsed. The action against all the developers will be taken all together,” he said.
The notices talk of imposing penalties on the guilty builders and for the RERA to arrange completion of remaining works with assistance from third parties.
An official said, “Directions were also issued to the developers to stop further bookings or sale of any apartment, plot or building in the lapsed projects. Also, the promoter could be penalised under Section 61 of the Act if this requirement is not met. Under this section, the promoter shall be liable to a penalty which may extend up to 5% of the estimated cost of the real estate project,” said the official.
As per the rule, the builder and promoters are required to submit a completion report with RERA before the final date of project completion, declared by them during registration. In case of any delay in project completion, the developers are required to apply with the regulatory authority for an extension to complete the remaining work. These builders and promoters have not fulfilled any of the two conditions. Notices have been issued to them seeking a response in one month. Penalty will also be imposed on them if they fail to respond.”
Sources at RERA said, “RERA in Rajasthan came into force from June 1, 2017 and total of 1457 projects have been registered so far across the state. Nearly 400 developers defaulting is not a good sign,” sources said.
This year in May, on the ground of force majeure, extension of 12 months was granted to the real estate projects expiring on or after March 19. “Notices are being issued to projects, which failed to complete before the given deadline,” said source.
