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The Real Estate Bill was passed by the Rajya Sabha on 10th March, 2016 and the Lok Sabha on 15th March, 2016. The Bill as passed by the Parliament was assented to by the Hon'ble President on 25th March, 2016. The Act as assented to by the Hon'ble President was published in the Official Gazette on 26th March, 2016 for public information.
Provisions of section 2, sections 20 to 39, section 41 to 58, sections 71 to 78 and sections 81 to 92 (relating to definitions, establishment/appointment of Regulatory Authority/Appellate Tribunal, Adjudicating Officer, framing of Rules/Regulations, constituting regulatory Fund, making website etc. came into force with effect from 1st May, 2016 vide Notfn. dt. 24.04.2016 of the Central Govt. (Ministry of HUPA). Remaining provisions of sections 3 to 19, 40, 59 to 70, 79 and 80 regarding registration of real estate projects, real estate agents, responsibilities of promoters/ allottees/agents, about penalties and offences etc. came into force w.e.f. 01.05.2017 vide Notfn. dt. 19.04.2017 of the Central Govt. (Ministry of HUPA).
Some sections of the Act have been notified after one year, as the institutional structures, namely the establishment of the Regulatory Authority and the Appellate Tribunal are necessary prior to their enforcement.
The real estate has grown in the recent years but has largely been unregulated from the perspective of consumer protection. Though, consumer protection laws are available, the recourse available therein is only curative, but not preventive. This has affected the overall potential growth of the sector due to absence of professionalism and standardization.
The Real Estate is intended to achieve the following objectives:
Section 2(g) of the Act defines 'appropriate Government accordingly in the State of Rajasthan, the State Govt. is the appropriate Govt..
The State Government is required to,-
The Act covers all bodies (private and public) which develop real estate projects for sale to the general public. Section 2(zk) defines the term 'promoter' which includes both private and public real estate promoters. Thus all Development Authorities, UITs, Municipal bodies, Housing Board, when involved in sale, are covered as Promoter under the Act.
As per the Explanation to section 2(zK)"where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sells apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made there under".
As per the Explanation to section 2(za) the rate of interest payable by either the promoter or the allottee shall be the same. The rate of interest has been specified in Rule 17 of the Rajasthan Real Estate (Regulation and Development) Rules, 2017. Accordingly the rate of interest is State Bank of India highest marginal cost of lending rate plus two percent. Provided that in case the State Bank of India marginal cost of funds based lending rates is not in use it would be replaced by such benchmark lending rates which the State Bank of India may fix, from time to time, for lending to the general public.
As per section 2(b), which defines ' advertisement' any medium adopted in solicitation for sale would be covered under the said definition, including SMS and e-mails.
As per section 2(d) an allottee includes a person who acquires the said ' apartment/plot' through transfer or sale, but does not include a person to whom such plot, apartment is given on rent.
Section 2(n) defines 'common areas' to include open parking areas; thus open parking areas cannot be sold to the allotters.
Section 2(n) defines 'common areas' to include 'community and commercial facilities; thus they are an integral part of the project, to be handed over to the Association/society of Allottees.
Section 2(zf) and section 2(q) respectively, define 'occupancy certificate' and 'completion certificate'. The two definitions are very broad and uses the term by whatever name called. Thus, if only one certificate is issued which provides for both the aspects covered under the two definitions, it would suffice the requirements under the Act.
Section2 (zf) and section 2(q) respectively, define 'occupancy certificate' and 'completion certificate'. Occupancy certificate relates to the occupation of the apartment/building, which has provision for civic infrastructure such as water, sanitation and electricity and is habitable. Completion certificate relates to the completion of the entire project certifying that the project has been developed according to the sanctioned plan, layout plan and sections, as approved by the competent authority.
section 2(v) defines 'estimated cost of the real estate project', which means "the total cost involved in developing the real estate project and includes the land cost, taxes, cess, development and other charges". The determination of the estimated cost of the real estate project is necessary due to chapter VIII of the Act, which provides that penalties would be imposed on the promoter, for violations prescribed under the Act, based on the estimated cost of the real estate project.
Section 2(y) defines the term ' garage', which can be sold to the allotted independent of the apartment;.
The term 'real estate project has been defined under section2(zn) and the term 'project' has been defined under section 2(zj), which have been interchangeably used under the Act.
Section 2(zm) defines the term 'real estate agents', which is a very broad and inclusive definition and covers all from of agencies involved in sale and purchase of projects, registered under the Act. Consequently, web-portals etc. engaged in selling plots or apartments are also covered under the Act and are required to comply with the duties and responsibilities as provided therein including under the Rules and regulations made thereunder.
Section 2(zr) is an omnibus definition which provides that terms which have not been defined under the Act or the Rules and Regulations made there under, would have the same meaning as respectively assigned to them under the relevant municipal law or under any law for the time being in force.
As per definition 2(1)(f) in Rules, the planning area means a planning area or a development area as specified under the Master plan.
Yes. Every real estate project which has land area more than 500 sq. meters or has more than 8 apartments needs to be registered
Yes. Every real estate project which has land area more than 500 sq. meters or has more than 8 apartments needs to be registered
No. The advertisement issued after1st May 2017 must carry the Registration Number of the project issued by the Authority.
The position of parking is as follows;
No. The wording in Section 2(d) “has been sold (whether as free hold or lease hold) or otherwise transferred by the promoter” indicates that the long term lease falls within the ambit of the Act. However, the premises given on short term lease not exceeding five years are not covered under the Act.
Section 18 of the Act provides for provisions as regards various situations in which the allottee would be compensated by the promoter due to delay in completion of the project etc.
No. There is no additional charges for online services..
Yes. The Act covers both residential and commercial real estate. Section 2(e) defines 'apartment' and section 2(i) defines ' building' which include both residential and commercial real estate.
Yes. As regards the ambit of the Act, there is no distinction between an ongoing project and a future project. In other words, both ongoing/incomplete projects and future projects are covered under the Act.
As per section 3(1) first proviso, the promoters of all ongoing projects will need to register their projects with the Regulatory Authority, within 3 months of its commencement, i.e. 1st May 2017.
Section 3(1) provides that all projects within a 'Planning areas' will require to be registered with the Authority and 'planning area' has been defined under section 2(zh).
However, section 3(1) second proviso gives powers to the Authority in the interest of 'allottees' to order/direct the promoter to register projects beyond the planning area, which has the requisite permission of the local authority.
As per section 3(2) the following projects do not require to be registered under the Act:
The promoter can advertise his project for sale after the project has been registered with the Regulatory Authority as provided in section 3(1).
Section 4 of the Act provides for details/information/documents and undertaking to be provided by the promoter to the Authority for registration of the project. Some additional informations/documents are also to be furnished as per Rule 3 of the Rajasthan Real Estate (Regulation and Development) Rules, 2017. The application for registration shall be filled in Form- A along with Declaration in Form-B. The application fee shall be paid as per rates given in rule 3(3) of the aforesaid Rules.
The promoter is required to make an application in Form-A and fees prescribed under Rule 3(3) of the Rajasthan Real Estate (Regulation and Development) Rules, 2017 along with the documents/ information and undertaking in Form-B to the Authority for registration of the project. In addition, the promoter is also required to append other/additional documents/information as specified in Rule 3(1) of the Rules.
In case of ongoing projects, some additional information are also required to be submitted.
The Regulatory Authority is required to register the project, if it is in compliance with the Act and the Rules and Regulations, within 30 days of the application having been received by the Authority.
If the application for the registration of the project is not complete as required under the Act or the Rules and Regulations made there under, the Authority may grant an opportunity to the promoter to complete the application in all respects. However, in case of non-compliance the Authority has the power to reject the application, only after giving an opportunity to the promoter of being heard.
Section 5 of the Act provides that the Authority has to decide on the application within 30 days of its receipt. It further provides that in case Authority fails to take a decision within the said period of 30 days the project shall be deemed to be registered.
As per section 4 the validity of the registration granted to a project shall be the period declared in Form-B by the promoter, in Form-B, under section 4(2)(I)(C), at the time of making the application for registration, within which he would complete the project.
Any applicant-promoter may withdraw his application. In case the promoter applies for withdrawal of application for registration of the project before the expiry of the period of thirty days provided under sub-section (1) of section 5, registration fee to the extent of five percent paid under Rule 3(3) of the Rules, or rupees twenty five thousand whichever is more, shall be retained as processing fee by the Authority and the remaining amount shall be refunded to the promoter within thirty days from the date of such withdrawal.
Section 4(2) (I) (D) provides that the promoter shall maintain a separate account for every project undertaken by him wherein seventy percent of the money received from the allottees shall be deposited for the purposes of construction and land cost. The account has to be self maintained and is not an escrow account requiring the approval of the Authority for withdrawal.
Section 4(2)(I)(D) clearly provides that the funds can only be used for construction and land cost.
As per section 4(2)(I)(D) first and second proviso, the promoter is required to withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project. In addition, the promoter is permitted to withdraw from the separate account after it is certified by an engineer, an architect and a chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project;
Yes. As per section 4(2)(I)(D) third proviso, the promoter is required to get his accounts audited within six months after the end of every financial year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be certified during the audit that the amounts collected for a particular project have utilized for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project.
Section 4 envisages that for a period of one year the application process can be both manual and online based and after one year it is mandatory to make the entire process online.
In Rajasthan the web-portal of Regulatory Authority has been established. Henceforth submission of all the applications for registration of projects/agents, complaints, appeals including payments of fees shall be online based.
Section 6 envisages two situations within which the registration granted to a project can be extended. Extension of registration can be granted in case of force majeure, in addition, it can also be granted under reasonable circumstance, without the fault of the promoter, which shall not be more than a maximum period of 1 year.
Explanation to section 6 has defined force majeure to mean a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project.
The registration may be extended on an application made by the promoter in Form-E prior to the expiry of the registration already granted.
The application for extension of registration shall be accompanied with a proof of payment through online mode, for an amount equivalent to half of the registration fee as specified under sub-rule (3) of rule 3 along with an explanatory note setting out the reasons for delay in the completion of the project and the need for extension of registration for the project, along with documents supporting such reasons. Provided that where extension of registration is due to force majeure the Authority may at its discretion waive the fee for extension of registration.
As per section 7 the Authority has the powers to revoke registration of a project, for violations specified under the said section. However, revocation of registration of a project is envisaged as a last resort and can only done after providing a reasonable opportunity of being heard.
In case a project is revoked, section 8 provides for various mechanisms in which the project can be completed. However, in such a scenario, the association of allottees shall have the first right of refusal for carrying out the remaining development works.
Yes, the layout of the real estate project has to be approved.
The Rajasthan RERA website (rera-rajasthan.in) would display all the registered projects.
It is mandatory that the advertisement for marketing of apartments in the real estate project must carry the registration number issued from the Authority.
Website of Regulatory Authority has been launched. All promoters shall make their applications online through this website (rera-rajasthan.in), filling the details in the requisite forms, uploading the required documents and paying the necessary fees through online mode of payment.
Promoter has to register the project before he starts any form of advertising, marketing, booking, selling, offer for selling or inviting people to purchase plots, apartment or buildings.
At the end of ninety days from the date of commencement of Section 3 of the Act, i.e. 31st July, 2017, the promoter of an ongoing project shall not advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment or building, unless he registers the project.
Yes, while registering project, promoter needs to give revised date of completion which should be commensurate with the amount of development completed.
Registration is of the Project/Phase and hence the provisions of the Act are applicable to all units of the Project/Phase.
As per section 5(2) of the Act, Regulatory Authority shall within a period of seven days of the deemed registration, provide registration number and a Login Id and password to the promoter for accessing in the website of the Regulatory Authority and to create his webpage and to fill therein the details of the proposed project.
A promoter would be allowed to advertise, market, book, sell or offer to sell or invite persons to purchase plot, apartment or building in a phase of a real estate project, only if the said phase is registered. A promoter cannot advertise, commit or sell amenities or facilities that are in a subsequent phase which is still not registered.
No, it has to be separately registered if the said adjoining land was not a part of the project which has been registered.
In accordance with section 14 of the Act, the promoter should take previous consent of the concerned allottees. In accordance with the provisions of this section the promoter is also liable to rectify any structural defect etc. within a period of five years from the date possession
Estimated cost of the whole project that has been put up for registration has to be indicated while applying for registration.
No. However, authenticated copies of necessary approvals from competent authority are required as per section 4 and the Rules and Regulations made there under. Please refer also to the Forms-A, Form-B and Form-C appended to the Rules and website of the Authority.
As per section 11 of the Act, the promoter is required to update all project information as furnished at the time of application (as provided under section 4) on the website of the Authority. In addition, section 11 also provides for certain information, which needs to be regularly (quarterly) updated by the promoter, in order to make an informed choice by the buyer.
In addition, the promoter is required to carry out all the responsibilities as envisaged under section 11 at various stages of development of the project and upon its completion.
Section 4 and section 11 provide for a detailed list of disclosures on the website of the Authority by the promoter for public viewing. Also the detailed list is specified in Rule 16 of the Rules. The website of Rajasthan RERA ("rera-rajasthan.in") is also to be seen.
As per section 12 the promoter is responsible for the veracity of all information contained in the advertisement and the prospectus. In case of any loss sustained by any person due to false information contained therein, the promoter is liable to make good the loss sustained due to the same.
Section 13 provides that the promoter cannot accept a sum more than 10 percent of the apartment/plot cost as an advance payment/ application fees. For any further collection towards the apartment/plot cost, the promoter is required to enter into an Agreement for sale with the allottee
The format of Agreement for sale to be entered into between the promoter and the allottee has been prescribed as Form-G under the Rules. This Agreement is binding on the parties. Internal flexibility as per contractual understanding could be provided in the said Agreement for sale, for determination/ insertion of other provisions as decided between the parties. However, such provisions should not be in derogation of or inconsistent with the terms & conditions of the format of the Agreement or the provisions of the Act and rules/ regulations made thereunder.
As per section 14 of the Act the promoter can only modify/amend the sanctioned plans or project specifications, after the approval of the competent authority and its disclosure to the allottees, in case of minor additions or alterations.
However, in case of major modification/alteration, the promoter can modify the sanctioned plans or project specification only after having taken approval from two-third of the allottees. In addition, for arriving at the number of two-third allottees, the number of apartments held by the promoter will be excluded. Also, irrespective of the number of apartments held by an allottee he/she shall only be entitled to one vote.
As per section 14(2) the promoter shall be liable for 5 years from the date of handing over of possession to the allottee towards structural defect or any other defect as specified therein.
As per section 15 the promoter is not entitled to transfer or assign his majority rights and liabilities in the project to a third party, without obtaining the prior written consent of two-third of allottees and the Regulatory Authority.
In addition, for arriving at the number of two-third allottees, the number of apartments held by the promoter will be excluded. Also, irrespective of the number of apartments held by an allottee he/she shall only be entitled to one vote.
As per section 16 the promoter is required to seek an insurance of the real estate project towards title of the land and towards construction of the project.
However, the said section provides that this provision shall only come into effect after and in the manner as may be notified by the State Government.
Section 17 of the Act provides for detailed provisions regarding transfer of title of the apartment and the project to the allottee and the association of the allottees respectively.
Section 18 of the Act provides for provisions as regards various situations in which the allottee would be compensated by the promoter due to delay in completion of the project etc.
Yes, in accordance with the provisions of the Act, the promoter, while applying for registration to Regulatory Authority, has to give a declaration cum affidavit, indicating the time period within which he undertakes to complete the project or phase thereof, as the case may be.
Promoter shall execute a registered conveyance deed in favor of the allottee within three months from date of issue of occupancy certificate or fifty one per cent of the total number of purchasers, in such a building or a wing, has paid the full consideration to the promoter, whichever is earlier.
The Act makes both the promoters and the landlord or any such parties which are beneficiary of a sale of a project and receive payments from allottees as Co-promoters and hence liable to adhere to the provisions of the Act and Rules and Regulations made there under.
The Act puts an obligation on a promoter to obtain consent of each allottee, if he wants to change the building plans for the phase that is registered. If a subsequent phase has not been registered, the promoter can change the plans of the subsequent phases without obtaining consent of the allottees from current / ongoing phases. However, if the subsequent phases are also registered, consent of allottees, of the concerned phases, would be needed as mentioned in section 14 of the Act
The Act protects the interest of all the Allottees including those who have executed an agreement before the project is registered under its provisions. Hence, if the promoter wants to change the plans post registration, then consent of all pre-registration allottees shall be required as well.
A promoter should meticulously plan the buildings of the registered phase & common areas and then declare the individual date of handing over possession of the building & common areas. Each phase along with the development works shall have to completed and handed over to the allottee within the time frame defined by the promoter, during registration, for that phase of the project.
As per section 16 of the Act the promoter has to obtain all such insurance as notified by the State Government. So insurance will be compulsory only after the Notification is issued by the State Government. The Act says that the State Government can prescribe various types of insurance including but not limited to,-
The promoter is liable to pay the insurance premium before transferring the same to the allottee / association of allottees. The documents related to insurance will have to be handed over to the association of allottees when the same is formed.
Yes, if this is declared at the time of registration and subject to provisions of Section 4 of the Act and Rajasthan Real Estate (Regulation and Development) Rules, 2017. However, the money withdrawn should be utilized towards construction expenses of the project, on priority.
The Act makes both the Promoters and the land owner or any such parties which are beneficiary of a sale of a project and receive payments from allottees, as Co-Promoters and hence liable to adhere to the provisions of the Act and Rules and Regulations made there under. The withdrawal of money would be subject to provisions of Section 4 of the Act and Rules made there under.
Yes, but consent of allottees would be needed as mentioned in section 14 of the Act.
The original certificates have to be retained by the promoter because the same are required to be verified and audited by the statutory auditor of the promoter's company at the end of every financial year. Copies may also have to be submitted to the concerned bank, if demanded by them.
No. A separate bank account needs to be opened in accordance with the provisions of the Act and rules made there under.
No. There should be one designated bank account for every registered project or registered phase of a project.
No. Section 13(1) of the Act prohibits the promoter from taking more than 10% of the cost of apartment without entering into a written agreement for sale, duly registered.
Provision of termination of agreement is covered in the Form of Agreement for Sale (Form-G) attached to Rajasthan Real Estate (Regulation and Development) Rules, 2017.
Section 19 provides for the various rights of the allottees. This section specifies various rights which the allottees have against the promoters including those which the promoters are liable to fulfill based on the agreement entered into with the allottees, namely-stage-wise schedule of completion of the project and the services, claim timely possession of the apartment/plot, entitlement to necessary documents and plans etc.
Section 20 provides for the various duties of the allottees, which provides for matters relating to payment regarding the apartment/ plot, liability towards interest for delay in payment, responsibility to take possession, participate in formation of association etc.
Regulatory Authority will take action in accordance with section 8 of the Act.
Yes. In accordance with the Agreement for Sale as prescribed in Form-G, if the Promoter fails to abide by the time schedule for completing the project and handing over the [Apartment/Plot] to the Allottee, the Promoter agrees to pay to the Allottee, who does not intend to withdraw from the project, interest as specified in the Rules, on all the amounts paid by the Allottee, for every month of delay, till the handing over of the possession.
The interest payment is in accordance with the Agreement for Sale and hence should be automatically paid. The buyer may have to file a complaint to Regulatory Authority if there is a grievance.
In accordance with the Agreement for Sale, the Allottee has to pay to the Promoter, a rate of interest specified in rule 17 of the Rules. The rate of interest is equal to the State Bank of India highest Marginal Cost of Lending Rate plus two percent, on all the amounts which become due and payable by the Allottee to the Promoter under the terms of the Agreement for Sale from the date the said amount is payable by the allottee(s) to the Promoter.
Section 31 of the Act and Rule 35 of Rajasthan Real Estate (Regulation and Development) Rules, 2017 provide for filing of complaint with Regulatory Authority, by an aggrieved person. The aggrieved person can file an application online as per Form-N prescribed under the Rules.
Yes. Real estate agents which engage in selling projects registered under the Act can do so only after registering themselves with the Authority. Section 9 of the Act provides that no real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project registered under section 3, being sold by the promoter in any planning area, without obtaining registration under section 9.
Section 10 of the Act provides for detailed functions and duties of real estate agents, which are as under:-
The mechanisms for registration, the fees payable, the period of registration, subsequent renewal, rejection of application for registration, revocation etc. are detailed vide the Rajasthan Real Estate (Regulation and Development) Rules, 2017.
For registration every real estate agent shall make an application in Form-H to the Authority along with the following documents, namely:-
Real estate agent shall pay a registration fee at the time of application for registration through online mode at the time of online registration, for a sum of Rs.10,000/- in case of the applicant being an individual or Rs.50,000/- in case of the applicant being anyone other than an individual.
The registration granted to a real estate agent shall be valid upto five years.
The registration of real estate agent may be renewed, on an application in Form-K which shall not be less than three months prior to the expiry of the registration granted.
The application fees for renewal shall be paid through online mode at the time of online submission of application, for a sum of Rs.5,000/- in case of the real estate agent being an individual or Rs.25,000/- in case of the real estate agent being anyone other than an individual.
The real estate agent shall also submit all the updated documents as required for new registration as set out in clauses (a) to (f) of sub-rule (1) of rule 10. The renewal granted shall be valid for a period five years.
Where any real estate agent who has been granted registration under this Act
Commits breach of any of the conditions thereof or any other terms and conditions specified under this Act or any rules or regulations made thereunder, or where the Authority is satisfied that such registration has been secured by the real estate agent through misrepresentation or fraud, the Authority may, without prejudice to any other provisions under this Act, revoke
the registration or suspend the same for such period as it thinks fit: Provided that no such revocation or suspension shall be made by the Authority unless an opportunity of being heard has been given to the real estate agent.
The Authority shall grant a single registration to the real estate agent for the entire State.
Yes. Where, on the completion of the period of thirty days, if the applicant does not receive any communication about the deficiencies in application for registration or the rejection of such application, the real estate agent shall be deemed to be registered.
Yes, if it is against a consideration. Real Estate Agent is clearly defined in section 2(zm) of the Act
Yes, if it pertains to a registered project under the Regulatory Authority.
It will be through an easy online process. The procedure is explained in Rule 10 & 11 of Rajasthan Real estate(Regulation and Development) Rules 2017.
The fees are in accordance with Rule 10(3) of the Rajasthan Real Estate (Regulation and Development) Rules, 2017. The registration is valid for a period of five years
A real estate agent is clearly defined in Section 2(zm) of the Act.
The agent's liability is in accordance with Section 10 of the Act. He is not held liable for the promoter's default.
No, these will be guided by the agreements that real estate agents have with the concerned promoters or allottees.
The responsibility of the real estate agent will be in accordance with Section 10 of the Act.
It is explained in Section 10 (c) of the Act.
Under Section 12 of the Act, it is the obligation of the promoter regarding veracity of advertisement and prospectus. The agent is liable if he makes a false or misleading representation concerning the services that he intends to offer.
Yes, if they intend to facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a registered real estate project being sold by the promoter in any planning area.
No, however no advertisement should be put out for a project unless the concerned promoter has registered the project with Regulatory Authority. The agent should not advertise for services that are not intended to be offered.
For working as a real estate agent in Rajasthan, registration will be given by the Real Estate Regulatory Authority of Rajasthan.
Yes. As per section 20 the Regulatory Authority is required to be established by the State Government. For speedy implementation of the Act, the State Government has designated the Additional Chief Secretary, UDH Department as an interim Regulatory Authority, until the establishment of the full time Authority.
As per section 22 the Chairman and the Members of the Authority are required to be appointed by the State Government on the recommendations of a Selection Committee comprising of the Chief justice of the High court (or his nominee),the Addl. Chief Secretary, UDH Dept. and the Principal Secretary Law Dept.. The section also provides for the qualification etc. that are required for the appointment of the chairman and the members.
As per section 22 the Chairperson should have adequate knowledge of and professional experience of at least 20 years and the Members should have adequate knowledge of and professional experience of at least 15 years in urban development, housing, real estate development, infrastructure, economic, technical expert from relevant fields, planning, law, commerce, accountancy, industry, management, social service, public affair or administration.
A person who has held the post of Addl. Secretary to the Central Govt. or any equivalent post in the Central/State Govt. can be appointed as Chairperson and a person who has held the post of Secretary to the State Govt. or any equivalent post in the Central/State Govt. can be appointed as Member.
Apart from the day to day implementation of the Act and the Rules and Regulations made there under the immediate responsibility of the Regulatory Authority are;
Section 31 of the Act provides for filling of complaint by an aggrieved with the Regulatory Authority. Any aggrieved person may file a complaint in Form-N prescribed in Rules. The Complaint shall be accompanied by a fee of rupees 1000/- to be paid through online mode of payment. The manner for filling the complaint has been specified in rule 35 of the Rules.
Section 29 provides that the Authority should endeavor to dispose of the questions/complaints as expeditiously as possible but not later than sixty days from the date of filling the same. However, where it could not be disposed of during the said period the Authority is required to record its reasons for the same.
Yes. An aggrieved person having any interest in the registered real estate project can file complaint.
The aggrieved person can file an application online as per prescribed Form-N which is also provided by Regulatory Authority website.
An aggrieved person may file a complaint with Regulatory Authority for any violation or contravention of the provisions of the Act or the Rules or Regulations made there under.
The Regulatory Authority shall decide complaints.
Promoter has to enable formation of Association of Allottees like Cooperative Society, Company, Association, Federation etc. within three months from the date on which fifty one per cent of the total number of purchasers, in such a building or a wing, have booked their apartment.
Regulatory Authority empowers any aggrieved person to file a complaint with respect to a registered real estate project. This will include an allottee who has an agreement executed before the ongoing project is registered with the Regulatory Authority. However, the Regulatory Authority will have authority to adjudicate for violations and contravention of provisions of the Real Estate (Regulation and Development) Act or rules and regulations made thereunder.
As per section 43 of the Act, Appellate Tribunal is required to be established by the State Government. For speedy implementation of the Act, section 43 empowers the State Government to designate an existing appellate Tribunal (under any other law in force) to function as an Appellate Tribunal under the Act, accordingly the State Government has designated the Food Safety Appellate Tribunal as interim Real Estate Appellate Tribunal until the establishment of permanent Real Estate Appellate Tribunal.
The Appellate Tribunal is a quasi-judicial body, which is empowered to hear appeals from the order/decisions/directions of the Regulatory Authority or the Adjudication Officer, as the case may be. Every appeal shall be accompanied by a fee of rupees 5000/- to be paid through online mode of payment. The appeal shall be filed in Form-M. The manner of filling of appeal and the manner for hearing and disposing the appeal has been prescribed in rule 27 of the Rules.
Any person aggrieved by the decision or order of the Appellate Tribunal can file and appeal with the High Court.
Section 44 provides that the Appellate Tribunal should endeavor to dispose of the appeal as expeditiously as possible but not later than sixty days from filling the appeal. However, where the same could not be disposed of during the said period the Appellate Tribunal is required to record its reasons for the same.
As per section 46 the Chairman of the Appellate Tribunal be a sitting or retired judge of the High Court. Section 46 also provides that the Appellate Tribunal shall comprise of at-least two Members one of whom shall be a judicial Member and the other shall be a Technical or Administrative Member.
As per section 46 the Members of the Appellate Tribunal are required to be appointed by the State Government on the recommendations of a Selection Committee comprising of the Chief Justice of the High Court (or his nominee), the Additional Chief Secretary, UDH Department and the Principal Secretary, Law Department. The section also provides for the qualification etc. that are required for the appointment of the Judicial/ Administrative Members.
As per section 59, where under the Act, it is obligatory for the promoter to register a project with the Authority, and the promoter fails to do the same, he shall be liable to a penalty upto ten percent of the estimated cost of the real estate project.
however, in case the promoter consistently defaults or does not comply with the directions/orders of the Authority as regarding registration of the project with the Authority, he shall be liable to additional fine of ten percent of the estimated cost of the real estate project or imprisonment upto 3 years or both.
As per section 60 if the promoter defaults as regards matters covered under section 4, he shall be liable to a penalty upto five percent of the estimated cost of the real estate project.
As per section 61 if the promoter defaults any other provision of the Act or the Rules and Regulations made thereunder, he shall be liable to a penalty upto five percent of the estimated cost of the real estate project.
As per section 63 if the promoter fails to comply with the order of the Authority he shall be liable to a penalty for every day of default, which may cumulatively extended up to five percent of the estimated cost of the real estate project.
As per section 64 if the promoter fails to comply with the orders of the Appellate Tribunal, he shall be liable to a penalty for every day of default, which may cumulatively extended up to ten percent of the estimated cost of the real estate project or with imprisonment for a term which may extend up to three years or with both.
As per section 62, where under the Act, it is obligatory for the real estate agent to register himself with the Authority, and the real estate agent fails to do the same, he shall be liable to a penalty of rupees ten thousand per day of default, which may be cumulatively extended up to five percent of the cost the plot/ apartment/building, for which the sale/purchase has been facilitated by him.
As per section 65, if the real estate fails to comply with the orders of the Authority he shall be liable to a penalty for every day of default, which may be cumulatively extended up to five percent of the cost of the plot/apartment/ building, for which the sale has been facilitated by him.
As per section 66 if the real estate agent fails to comply with the order of the Appellate Tribunal, he shall be liable to penalty for every day of default, which may be cumulatively extended up to ten percent of the cost of the plot/apartment/ building, for which the sale has been facilitated by him or with imprisonment for a term which may extend upto one year or with both.
As per section 67 if the allotted fails to comply with the orders of the Authority he shall be liable to a penalty for every day of default, which may be cumulatively extended up to five percent of the cost of the plot/apartment/building.
As per section 68 if the allottee fails to comply with the orders of the Appellate Tribunal, he shall be liable to a penalty for every day of default, which may be cumulatively extended up to five percent of the cost of the plot/apartment/ building or with imprisonment for a term which may extend upto one year or with both.
As per section 70 if person is punishable with imprisonment under the Act, the same may be compounded on such terms and conditions which has been prescribed in rule 34 of the Rules, which cannot be more than the maximum fine payable for that offence.
The Adjudication Officer is a quasi-judicial person who is mandated to adjudicate on disputes arising under section 12, 14, 18 and section 19. The Adjudicating Officer shall be a person who is or has been a District Judge.
The Adjudicating Officer shall, while deciding the disputes under section 12, 14, 18 and 19 of the Act, have regard to the amount of disproportionate gain or unfair advantage, the amount of disproportionate gain or unfair advantage, the amount of loss, repetitive nature of the default and such other factors that the Adjudicating Officer may consider necessary in furtherance of justice.
The State Government may through due appropriation make grants to the Authority.
The State Government is required to constitute the Real Estate Regulatory Fund, which is to be administered by a committee of such Members of the Authority as may be determined by the Chairperson.
The said Fund is required to be used towards payment of salary and allowances to the Chairperson and the Members of the Authority and the Appellate Tribunal and such other expenses of the Authority in connection with the functions and purposes specified under the Act.
Following shall be credited to the Real Estate Regulatory Fund :-
a) all Government grants received by the Authority,
b) the fees received under the Act, and
c) the interest accrued on the amounts (a) +(b)
As per section 76 penalties recovered under the Act are to be deposited in such account as may be specified by the State Government in Finance Department.
As per section 77 the Authority is required to prepare a budget and maintain proper account and other relevant records and also prepare an annual statement of accounts in the manner prescribed in rule 37 of the Rules. The annual statement of accounts shall be prepared in Form-P prescribed in the Rules.
In addition, section 77 provides that the accounts of the Authority are required to be audited by the Comptroller and Auditor General of India.
The accounts of the Authority as certified by the CAG together with the audit report is required to be forwarded annually to the State Government by the Authority and the State Government shall cause it to be laid before the State Legislature.
As per section 78 the Authority is required to prepare an Annual Report in the manner prescribed in rule 38 of the Rules. The annual report shall be prepared by the Authority in Form-Q as prescribed in the Rules.
In addition, the said Annual Report is required to be forwarded to the State Government for it to be laid before the State Legislature.
As per section 79 of the Act civil courts are barred from entertaining disputes (suits or proceedings) in respect of matters which the Authority or the adjudicating officer or the Appellate Tribunal is empowered under the Act to determine. However, the consumer forums (National, State or District) have not been barred from the ambit of the Act.
Section 71 proviso permits the complainant to withdraw his complaint as regards matters under section 12,14, 18 and section 19 from the consumer forum and file it with the adjudicating officer appointed under the Act.
The laws of the country do not permit forum shopping, thus, an aggrieved can only approach one of the two for disputes over the same matter.
As per section 81, the Authority is empowered to delegate such of its powers and functions under the Act to any Member, officer or any other person subject to conditions specified in the order issued for the same. However, the Authority cannot delegate the responsibility of making Regulations under section 85 under the Act.
As per section 85 of the Act, Regulations are required to be notified by the Regulatory Authority within 3 months of its establishment.
As per section 86 every Rule, Regulation, notification issued by the appropriate Government or the Authority, is required to be laid before the Parliament or the State Legislature, as the case may be.
The Central Government, under section 91, has been empowered to notify orders towards removal of difficulties while implementing the Act. However, such removal of difficulties order cannot be issued after the expiry of a period of two years since its commencement. The Central Government vide its notification dt.28.10.2016 has issued such order namely, "the Real Estate (Regulation and Development) Removal of Difficulties Order, 2016" which has been published in Gazette of India on dt.28.10.2016.
The Central Advisory Council, to be headed by the Union Minister for Housing, is a multi-member body comprising of representatives of specified Central Minister, five representatives of State Governments to be selected by rotation, five representatives of Regulatory Authorities to be selected by rotation and any other central government department as notified.
The Central Advisory Council is also required to have representatives of consumers, real estate industry, real estate agents, construction laborers, NGOs, and academic/research institutions.
The Central Advisory council is required to advise the Central Government of matters relating to implementation of the Act, questions of policy, protection of consumer interest, foster growth and development of the estate sector and other matters as may be assigned to it by the Central Government.
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