The Rajasthan Real Estate Regulatory Authority (RERA) has initiated the e-auction process for properties that have been attached, collaborating with MSTC Ltd, which operates under the Ministry of Steel.
This authority has opted to utilize the e-auction software provided by MSTC, a platform that is extensively employed by government departments, in its efforts to enforce compliance and facilitate timely recovery from real estate developers who are in default. The decision to contract MSTC was unanimously ratified during the Authority’s 21st meeting held on May 15. The auctions will be carried out in accordance with the Rajasthan Transparency in Public Procurement (RTPP) Rules.
Advocate Mitesh Rathore remarked, “In the past, recovery was regarded as arrears of land revenue, necessitating the dispatch of recovery certificates to the relevant collector, a process that was both protracted and burdensome. With MSTC now involved, RERA can carry out recoveries directly through efficient e-auctions.” This measure will be implemented under Section 40 of the Real Estate (Regulation and Development) Act, 2016, which grants the authority and the adjudicating officer the power to recover penalties, interest, or compensation through methods akin to the recovery of land revenue and civil court judgments.
The minutes from the meeting indicate that Rules 25 and 26 of the Rajasthan RERA Rules, 2017, along with the 2024 Regulations, outline comprehensive procedures for enforcing orders issued by the authority and the adjudicating officer. “In instances of ongoing non-compliance by promoters, the attachment and auction of properties have emerged as essential enforcement mechanisms.
The authority has also sanctioned the auction procedures, payment methods, service charge framework, and system integration with the RERA 2.0 portal,” the minutes noted. The registrar has been instructed to commence the necessary actions for executing the engagement and operationalizing the auction process in collaboration with MSTC.
During the same meeting, RERA also sanctioned a revised fee structure that will take effect on June 1, 2025. The standard registration fee for farmhouse schemes has been reduced to Rs 3 per square meter of the total project area, which is lower than the fees for other project categories. For comparison, residential, institutional, and industrial projects will continue to incur a fee of Rs 5 per square meter for both registration and standard fees. In contrast, commercial and mixed-use projects will face a higher standard fee of Rs 10 per square meter, with a registration fee of Rs 5 per square meter.
