Assam tribunal upholds penalty on promoter for non-registration of real estate project

The Assam Real Estate Appellate Tribunal (REAT) has upheld the order of the Real Estate Regulatory Authority, Assam, in which a promoter has been fined Rs 2 lakh for not registering a real estate project.

The appellant has violated sub-section (1) of section 3 of the Real Estate (Regulation and Development) Act, 2016, which required him to apply for project registration.

This is an ongoing project and 90% of the work has been completed so far.

According to the first rule of subsection (1) of section 3 of the Real Estate (Regulation and Development) Act, 2016, promoters of such ongoing projects were required to apply to RERA for registration. But in this case, the promoter did not.

“Such new and ongoing projects which have not been applied for and are clearly defined should be dealt with properly and punished in strict terms of the Act,” the tribunal directed.

He further observed that under Section 35 of the Act, the regulatory authority has the power to go ahead and ask any promoter at any time to provide in writing any information or explanation regarding its affairs which Need authority and that too. Appoint one or more persons to inquire into the affairs of a promoter.

The tribunal also drew attention to sub-rule (1) of rule 4 of the Assam Real Estate (Regulation and Development) Rules 2017, which states that upon notification of the commencement of sub-section (1) of section 3, all promoters Ongoing projects that have not obtained a certificate of possession are required to apply to the Real Estate Regulatory Authority for registration.

The tribunal noted that the appellants continued to enter into agreements to sell the apartments without even trying to apply for registration of their project.

He expressed frustration over the fact that the appellants have not yet applied for registration of the project despite clear instructions from RERA Assam to do so within 15 days.

Seeing that he had no reason to interfere in the RERA Assam order, the tribunal upheld the fine of Rs 2 lakh imposed on the promoter.

The order was issued on Friday by Justice (retd) Manojit Bhuyan, chairperson of Assam REAT and Onkar Kedia, a member of Assam REAT.

In another recent case, Assam REAT asked RERA, Assam to take necessary steps to ensure that all new and ongoing real estate projects within its jurisdiction, except the Real Estate (Regulation and Development Act) Exceptions have been applied for, under 2016. For registration with RERA, Assam and / or are properly registered.