Status as on 29/06/2019
Real Estate Regulatory Authority formed under RERA Act, 2016 is the regulating body performing judicial functions to regulate the transactions involved in the real estate sector. The act gives the authority power to direct the promoters and agents to comply with the provisions of the act as well as the authority holds the power to impose fines and penalties in case of any non-compliance or any disobedience. Recently, UP RERA has imposed a fine amounting to Rs.1 Crore on ANSAL API for the non-compliance of orders passed by the authority.
ANSAL API is under the scrutiny of UP RERA for past several months after the alleged diversion of Rs.6000 Crore of home buyers money and delayed completion of housing projects across the state of Uttar Pradesh. The authority has imposed a no sale, no mortgage and no transfer of assets order. It also orders the ANSAL API to deposit investor’s money in the escrow accounts of the project. It also asked the developers to publish the details of escrow accounts of 6 projects in the newspaper for which there have been reports of fund diversion. Due to noncompliance of the same, ANSAL has been imposed the fine.
Therefore art Chartered Accountant has been appointed from the panel of CAG to carry out all the audits of all ANSAL Projects. Banks have been directed to not disburse money for the construction of project till the time approval of the auditor who is appointed by UP RERA is not received. A joint affidavit of the CA, architect, and the structural engineer is required and if ANSAL API fails to follow his also; the authority is firmed to de-register the projects.
This strong stance of UP RERA has sent a very strong message to all the builders out there in the market that RERA Act cannot been taken lightly. This kind of initiative by the regulatory authority ensures home buyers are more protected now than ever. This kind orders passed by the regulatory authority will be make the developer to abide by the Act.
Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.