The Gujarat Real Estate Regulatory Authority (GujRERA) has taken proactive measures against a builder for taking booking from a buyer before RERA registration.
Sources indicate that GujRERA was alerted by a complaint from the buyer, who reported that the builder had collected a token amount of Rs 1 lakh before securing RERA registration for his project located in the Gandhinagar district.
The complainant sought RERA’s intervention to prevent the developer from accepting booking amounts from other potential buyers until the RERA registration was completed. Although GujRERA dismissed the application since the complainant had received a refund, it nonetheless initiated suo moto action against the builder for engaging in advertising and booking activities without RERA registration, which constitutes a breach of Section 3 of the RERA Act.
As a result, proceedings have been initiated under Section 59 against the builder, and plans are underway to establish teams that will conduct field investigations into such malpractices, according to sources. Sources indicate that GujRERA is contemplating the creation of zone-specific teams of field officers tasked with examining these practices. “Numerous builders promote their projects prior to obtaining RERA registration and also collect booking fees from potential buyers.
Many developers advertise their projects without disclosing the RERA registration number, even when they possess it. The authority aims to promote transparency and safeguard consumer interests. It is likely to form various zone-specific teams to visit different projects and identify those that advertise without RERA registration and accept booking fees before securing RERA registration.
These teams will encompass all municipal and corporate areas within the state. Additionally, the authority is actively monitoring social media to identify such practices. RERA has the authority to impose penalties of up to 10% of the project cost if a builder fails to display the RERA number in their advertisements,” stated a source.
