Status as on- 25/02/2021
Rajasthan Real Estate Regulatory Authority (RajRERA) issued more than 300 notices to the developers in light of the delay in project completion and is all set to issue more notices to the concerned new developers. The said notices talk about imposing penalties on builders/developers who are not able to complete the projects on time and handover the possession to the innocent homebuyers.
How developer defaults?
It has become a routine job for the developers to first announce a project, make advertisements, collect the booking amounts & other advance payments from the allottees and then delay the possession. This conduct of developers creates a huge chaos in real estate sector and gives rise to disputes between developers and buyers. Developers are required to submit the completion report before the final date of project completion and if they fail to do so then they need to apply to the Authority for the extension to complete the work left. If they are unable to execute any of the above mentioned procedure then the Authority directly sends a notice to the concerned developer asking for the response.
Role of RERA
Real Estate Regulatory Authority plays a very significant role in not only resolving the issues between buyers and developers but also in imposing penalties on developers on their default. Facing this pressure, developers try to complete their projects on time to avoid penalties that would otherwise be imposed on them by the Authority. Penalty may extend to 5% of the cost of the entire project. Also, the developer could be penalized under section 61 of the Act.
RERA is being very effective in keeping an eye on the conducts of the developers/promoters and taking further steps in case of any default on part of the concerned developer/promoter. Earlier there was no strong execution of such rules but after the implementation of RERA, now there is a strong adjudicating mechanism for resolving builder-buyer disputes as well as building a system to keep a check on the activities of the developer and time by time notifying them on their default.
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