JKRERA Slaps Rs. 10 Lakh Penalty on Non-Compliant Real Estate Developers
The Jammu and Kashmir Real Estate Regulatory Authority (JKRERA) has imposed a significant penalty of Rs. 10 lakh on real estate developers for failing to register an ongoing project in Raipur Domana. This action underscores the authority's commitment to enforcing regulatory compliance and protecting homebuyers.
Real EstateJkreraPenaltyRegulatory ComplianceHomebuyersReal EstateJun 02, 2025
The penalty of Rs. 10 lakh has been imposed for violation of Section 3 (1) of the Real Estate (Regulation and Development) Act 2016. The Authority took suo-motu cognizance of the violation and initiated proceedings under the applicable provisions of the Act. After thorough examination, it was established that the promoters have not obtained the requisite registration from JKRERA nor have they sought any exemption or provided a justifiable reason for the omission.
“It was an ongoing project and the promoter should have applied for the RERA registration well on time to avoid penalties. RERA registration is mandatory for all ongoing real estate projects where completion certificates were not issued,” said Satish Chandra, Chairperson JKRERA.
Mere imposition of a penalty does not exempt a promoter from registering their real estate project, reiterated the Chairperson JKRERA. He emphasized that continued non-compliance with Section 3 of the Real Estate (Regulation and Development) Act, which mandates project registration, will attract severe penalties. “As per Section 59(2) of the Act, promoters who fail to comply with orders or continue to violate registration requirements face imprisonment for up to three years or an additional fine of up to ten percent of the estimated project cost, or both,” added the Chairperson JKRERA. He urged all promoters to register their projects without delay to avoid further legal action.
The JKRERA reiterated that the registration of real estate projects, particularly ongoing projects, is a key step to ensure transparency, promote fair practices and protect the interests of allottees and homebuyers. It also enables the Authority to monitor project progress and enforce accountability in the real estate sector. This move by JKRERA is expected to set a precedent and encourage other developers to adhere to regulatory requirements, thereby fostering a more trustworthy and efficient real estate market in Jammu and Kashmir.
Frequently Asked Questions
What is the penalty imposed by JKRERA and for what reason?
JKRERA has imposed a penalty of Rs. 10 lakh on real estate developers for failing to register their ongoing project in Raipur Domana, as required by Section 3 (1) of the Real Estate (Regulation and Development) Act 2016.
What is the role of JKRERA in the real estate sector?
JKRERA, the Jammu and Kashmir Real Estate Regulatory Authority, is responsible for ensuring transparency, promoting fair practices, and protecting the interests of homebuyers by enforcing the Real Estate (Regulation and Development) Act 2016.
What are the consequences of non-compliance with JKRERA regulations?
Non-compliance with JKRERA regulations can result in severe penalties, including imprisonment for up to three years or an additional fine of up to ten percent of the estimated project cost, or both, as per Section 59(2) of the Real Estate (Regulation and Development) Act.
Why is RERA registration important for real estate projects?
RERA registration is crucial for ensuring transparency, promoting fair practices, and protecting the interests of homebuyers. It also enables regulatory authorities to monitor project progress and enforce accountability in the real estate sector.
What should real estate developers do to avoid penalties from JKRERA?
Real estate developers should register their projects with JKRERA as soon as possible to avoid penalties. They should also ensure compliance with all regulatory requirements and seek necessary approvals and registrations to maintain transparency and accountability.
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