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Top 5 RERA Punishments every buyer must know.

PUNISHMENT PRESCRIBED FOR NON-REGISTRATION OF A PROJECT UNDER THE RERA ACT


 

·         

10 percent penalty of the estimated cost of the project.
 

·         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 of up to 10 percent of the estimated cost of the real estate project.

 Non-registration of the project may also liable for 3 years of punishment.

·         However, in the case of the promoter consistently defaults or does not comply with the directions/orders of the Authority as regards registration of the project with the Authority, he shall be liable to an additional fine of ten percent of the estimated cost of the real estate project or imprisonment up to 3 years or both.

 

Penalty for violation of section 4(Application for registration of real estate projects)

 If any promoter provides false information or violating the provisions of section 4, he shall be liable to a penalty which may extend up to five percent of the estimated cost of the real estate project, as determined by the Authority.

Penalty for non-registration and violation under sections 9 and 10

 If any real estate agent fails to comply with or violating the provisions of section 9 or section 10 he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five percent of the cost of the plot, apartment, or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

 RERA act can be considered as a guardian to the buyers who are really looking forward with the hope of some protective rights of buyers. If this Act had not been created this would have made the upper hand on the builders who violate the rights of buyers by delaying, not fulfilling the agreed promises while handing over the property to the buyer.

The RERA Act has brought a ray of hope to the buyers. If it is implemented with proper monitoring there will be a reduction in the fraudulent activities of builders.

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