GUJRERA Cracks Down on Real Estate Developers for Rule Violations

The Gujarat Real Estate Regulatory Authority (GUJRERA) has begun issuing notices and imposing fines on developers for violating its rules. Recently, the authority’s adjudicating officer, in a Suo Motu action, issued several orders imposing fines ranging from Rs 25,000 to Rs 1,00,000 on developers for violations of norms.

Developers and promoters, under the Real Estate Regulations and Development Act, are required to follow certain rules while registering and selling their projects. However, it was brought to the RERA’s notice that many developers were not drawing an agreement for sale despite accepting over 10% of the property price as a booking amount. As per Section 13(1) of the RERA Act, a developer must draw an agreement to sell in such cases.

Builders are also banned from selling, marketing, or accepting bookings for their project without registering the same. They are also required to submit a quarterly report to the authority, failing which RERA is empowered to impose a fine of up to 5% of the project cost on builders under Section 61 of the Act.

RERA has been taking such action Suo Motu or following complaints from property owners. Last year, too, over 800 developers were fined.

“We have started issuing notices to developers as per the Suo Motu action for violating norms. The secretary registers the Suo Motu case and then places it before the concerned authority for adjudication. In case of glaring violations, it imposes a fine on the developers,” said a top RERA source. Recently, the authority issued several orders against developers in Ahmedabad, Gandhinagar, Surat, Vadodara, Rajkot, Anand, Kheda, and other districts.

RERA imposed a fine of Rs 1,00,000 on the promoter of Eklingji Skylight at Sanand Road for failing to draw an agreement to sell. One Uma Realty was fined for similar reasons pertaining to its scheme Yash Imperia at SG Highway, and so was Gandhinagar-based Ahana Infra for its project Ivara by Radhe.

Another promoter, Shivay Infrastructure, was fined Rs 1,00,000 for failing to submit a revised plan for alterations made in its project, Mahadev Skay at New Maninagar.

A Nikol-based builder, Radhe Infra, was fined Rs 75,000 for not submitting a quarterly report for its project Hilltown Harmony before the authority. Surat-based builder Kuberji Leisure and Infraspace LLP were fined Rs 1,00,000 for similar reasons for their project, Shree Kuberji Textile World.

Sources said RERA has prepared a list of violators and begun issuing them show-cause notices to impose fines.