Penalty for Booking/Sale of units under Real Estate Regulation Development Act, 2016 in Gujarat
- Other Laws|Blog|News|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 4 March, 2022
Latest from Taxmann
[2021] 132 taxmann.com 54 (Article)
Regulation of the Real Estate Sector is governed by Real Estate Regulation and Development Act, 2016 and Relevant Rules. The Act came into force, with effect from 01.05.2016. By virtue of the RERA Act and relevant Rules, the RERA Authority has been assigned the power to suo-moto issue notices to promoters (Real Estate Developers) if the non-compliances are noted and accordingly orders for levying penalty are being passed within the framework of the relevant Act and Rules. On 27th & 28th October 2021, various such orders has been passed by Guj RERA Authority for violation of Section 3 read with Section 59(1) of Real Estate Regulation and Development Act, 2016 Act, by levying penalty on the Promoter for booking/selling the units of the Project without obtaining the RERA registration.
As per Section 3 of Real Estate Regulation and Development Act, 2016 “No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act”. Under Section 59(1) discretionary powers have been assigned to authority to levy penalty up-to 10% of the Estimated Project Cost and the Section is read as “59(1) If any promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend up to ten percent of the estimated cost of the real estate project as determined by the Authority”
How Guj RERA Authority is regularising the Real Estate Sector?
The real question is “How Guj RERA is tracking non-compliance of Section 3 and issuing suo-moto notices to promoters?”. The clear answer to this question is “details contained in Form 3 signed by Chartered Accountant” submitted at the time of registration of the project or “site visit”.
Click Here To Read Full The Article
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
