Bihar RERA takes strict action: Freezes Bank Accounts of Construction Company & its Directors


Status as on- 11/03/2021


Recently Bihar-RERA issued an interim order in a case where it froze the bank accounts of a construction company and its directors. The complainant number 1 (Nagendra Kr.) submitted to the bench that he had paid full amount for a flat in 2011 but the flats are still not ready. The counsel for the second complainant (Mr. Jai Ram Singh) submitted that the respondent counsel had not communicated with either complainant or the counsel himself. The respondent counsel also failed to furnish the list of allottees in the project as sought by the Bench on the last date of hearing.

Observation by the Bench

The Bench expressed disgust over the conduct of the respondent company as it apparently executed more agreements for sale than its own share in the project. The Bench also observed that the respondent counsel was not prepared for the case at all, firstly he did not give a satisfactory response regarding his site inspection for which he had taken adjournment for more than a week on the last date of hearing, secondly, he was not complying with the orders of the bench, even after repeated directions.The most important observation by the Bench was that as on 1st of May 2017, the day on which the provisions of Real Estate (Regulation and Development) Act 2016 came into operation the project “Sudha Complex” was an ongoing project and by not registering the same the promoter has violated Section 3 of the Real Estate (Regulation and Development) Act 2016.

Order by the Bench

The Authority using its powers under Section 36 read with Section 34 (f) & Section 37 of the RERA Act, 2016 directed to freeze the accounts of the company (M/s Amina Construction Pvt. Ltd.) and its two directors (Amina Rashid–Director & Md. Khalid Rashid- Managing Director), the bench also requested the IG Registration to issue necessary directions to all DSRs/Sub-Registrar not to register any apartment/plot of project “Sudha Complex” and any other project of M/s Amina Construction Pvt. Ltd. till further order.

Section 34(f), 36 and 37 of the RERA Act, 2016

Section 34 of the act talks about the various functions of the authority, 34(f) says that the authority should ensure compliance of the obligations cast upon the promoters, the allottees and the real estate agents under this Act and the rules and regulations made thereunder.

Section 36 of the act gives the power to The Authority to issue interim orders if it is satisfied that an act has been committed and continues to be committed or that such act is about to be committed and the said act is in contravention to the RERA Act, the Authority may, by order, restrain any promoter, allottee or real estate agent from carrying on such act until the conclusion of such inquiry or until further orders.

Section 37 of the act give power to the authority to issue directions for the purpose of discharging its functions under the provisions of this Act, these directions are binding on all the concerned people.

Disclaimer– The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at

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