RERA: Revocation of RERA Registration of the Builders


The Real Estate (Regulation and Development) Act, 2016 started spreading its root from 1st of May in 2017 by directing all the states to make rules and regulations for governing the Real Estate Sector of the country, whereby all the promoters were directed to get there ongoing and new projects registered with the authority with 3 months.

The registration process for the projects is mentioned in Section 4 of the Act and further in section 5 it is mentioned that the authority is bound to reply on the application for registration within 30 days either acceptance and grant or registration or rejection of the same.

Now the question arises whether after granting the registration the authority can cancel or revoke it if the promoters are not complying with the requirements of the Act or the Rules? But first let us understand why the promoters are bound to register their projects with the authority.

The RERA Authority act as a supervisor and regulator for the real estate sector, hence if the project is not registered then it is not possible for the authority to compel the promoters for following the rules and norms.

Now coming to the revocation and cancellation of the registration the Authority reserves the right to revoke the registration granted to the project on receipt of a complaint or suo moto or on the recommendation of the competent authority under the following circumstances: –

  1. If the promoter makes default in doing anything required by or under this Act or the rules or the regulations made thereunder
  2. If the promoter violates any of the terms or conditions of the approval given by the competent authority
  3. If the promoter is involved in any kind of unfair practice or irregularities.

This will be an injustice to the promoters if the registration is revoked by the authority, hence the Authority is bound to give 30 days’ notice in writing, stating the grounds on which it is proposed to revoke the registration, and has considered any cause shown by the promoter within the period of that notice against the proposed revocation.

If found guilty of any of the offences the authority instead of revocation of the registration may impose further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter.

Previously the UPRERA has revoked few of the registrations due to the fault of builders and have also imposed penalty on numbers of builders rather than revoking the registration.

The Act has provided every means and powers to the Authority to control and regulate the Real Estate Sector of the country.

Disclaimer – The above summary is based on the personal interpretation of the revised regulations, which may differ person to person. Hence, the readers are expected to take expert opinion before placing reliance on this article.

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