Jammu and Kashmir RERA Cracks Down on Non-Compliance in Real Estate Sector
The Jammu and Kashmir Real Estate Regulatory Authority (J&K RERA) is taking a significant step towards enforcing transparency and accountability in the region's real estate sector.
ReraJammu And KashmirReal EstateComplianceRegulationsTransparencyAccountabilityReal EstateJun 23, 2024
One of the critical provisions under the Act is Section 3(1), which mandates the prior registration of real estate projects with the RERA. This section unequivocally states that no promoter can advertise, market, book, sell, or offer for sale any plot, apartment, or building without registering the project. The failure of developers to comply with this regulation not only undermines the legislative intent but also poses significant risks to consumers, who are left vulnerable in an opaque market.
The authority's readiness to issue notices to non-registered developers underscores its commitment to upholding the law. The consequences for non-compliance are severe, with potential penalties extending up to 10% of the estimated project cost. Furthermore, persistent non-compliance could lead to imprisonment for up to three years and additional fines.
Despite the authority's efforts, including numerous meetings with developers and agents to guide them through the registration process, there remains a significant gap in compliance. This reluctance or negligence on the part of developers to register their projects not only contravenes legal requirements but also betrays a disregard for consumer rights and market fairness.
By enforcing the registration mandate, J&K RERA is going to protect and empower real estate consumers. The regulation also extends to real estate agents who facilitate transactions within the sector. As per the Act, agents must obtain registration to act on behalf of any party in a transaction involving registered real estate projects.
Registration is not just a means of generating revenue for the Government; it also ensures that developers adhere to essential infrastructure requirements. These include the minimum width of lanes, parking spaces, provision of parks, market facilities, connectivity with main roads, access to drinking water, and proper land usage. All these factors are crucial from the consumer's perspective.
Furthermore, the Act empowers RERA to revoke registrations if promoters default on their obligations, violate terms of approval, or engage in unfair practices. This provision ensures that even after registration, continuous compliance is required, fostering a culture of ongoing accountability and ethical practices.
The impending notices to non-registered developers serve as a wake-up call for the real estate sector in Jammu and Kashmir. Compliance with the Act is not optional but mandatory. The ultimate beneficiaries of such regulations are consumers, who can engage in real estate transactions with greater confidence and security.
The real estate market's integrity is fundamental to economic stability and consumer trust. By holding developers to account, J&K RERA is safeguarding the interests of consumers and paving the way for a more robust and transparent real estate ecosystem in Jammu and Kashmir. Streamlining real estate business is in everyone's interests.
Frequently Asked Questions
What is the primary goal of the Real Estate (Regulation and Development) Act, 2016?
The primary goal of the Act is to regulate and promote the real estate sector, ensuring transparency in transactions, protecting consumers' interests, and expediting dispute redressal mechanisms.
What is the consequence of non-compliance with the registration mandate under Section 3(1) of the Act?
The consequences for non-compliance are severe, with potential penalties extending up to 10% of the estimated project cost. Furthermore, persistent non-compliance could lead to imprisonment for up to three years and additional fines.
What is the role of real estate agents in the sector?
As per the Act, agents must obtain registration to act on behalf of any party in a transaction involving registered real estate projects.
Why is registration with RERA important for developers?
Registration is not just a means of generating revenue for the Government; it also ensures that developers adhere to essential infrastructure requirements, which are crucial from the consumer's perspective.
What is the ultimate benefit of compliance with the Act?
The ultimate beneficiaries of such regulations are consumers, who can engage in real estate transactions with greater confidence and security.
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