The Gujarat Real Estate Regulatory Authority (GujRERA) has cracked the whip on real estate developers and ordered them to pay fines for violation of norms. RERA has fined two builders for booking and selling properties before getting them registered with the authority. Another one was fined for receiving an amount more than 10 per cent of the property cost before drawing up the sale agreement.
In the first case, the authority imposed a fine of Rs 27.39 lakh on Devnandan Builders Private Limited for booking apartments at its scheme Devnandar Parisar-2 in Adalaj before registering the project with RERA. The developer submitted an explanation that the company had applied for registration in 2017, but it was rejected. It said it would submit the project certificate as soon as the chartered accountant prepared it. RERA was not convinced by this and observed that the promoter sold or booked 205 units in the project before submission of the project certificate. The company was levied a fine of over Rs 27 lakh.
No more than 10% as advance payment
In another case, the authority imposed a fine of Rs 7 lakh on one Dwarkadas Pritamani for taking booking amounts totalling Rs 6.70 crore from 45 buyers and allotting flats in his project Ravideep Apartments.
As per the RERA law, a promoter cannot accept an amount that is more than 10% of the cost of an apartment, plot or any other property as an advance payment before signing an agreement for sale (AFS).
In yet another case, an audit conducted by a CA for a project brought to light that developer Shivalik Infraspace LLP had collected a sum more than 10% of the cost of an apartment in Shivalik Sharda Parkview apartments in Shela.
Asked for an explanation, the builder’s representative told the authority that the company had made genuine attempts to draw up agreements for sale with the buyers, but could not register the agreements as the buyers did not respond to its reminders. The company submitted evidence about the procedure it undertook. It also presented AFS it had registered with seven of its buyers. After taking note of records submitted by the promoter, RERA observed that the promoter did make attempts for registration of AFS and levied a reduced fine. However, as norms had been violated, the promoter was directed to deposit a fine of Rs10.60 lakh.
Meanwhile, Chitrak Shah, MD of Shivalik Infraspace told Mirror, “We are going to file an appeal before the court. The issue of AFS has become a sticking point in the real estate fraternity as many buyers don’t want such a document. This issue must be resolved and promoters shouldn’t be fined in such cases.”
Gihed meet discusses upcoming case in SC
GIHED – CREDAI held an urgent meeting of developers on Friday to sensitise them about the upcoming SC hearing on a pending issue about ‘conditional plan approval’ for the ‘draft town planning (TP) areas.’
According to developers, around 70 pe rcent of the on-going real estate projects in Ahmedabad and Gujarat fall in the draft TP areas of authorities like AUDA and AMC.
MD of Nexrise Group, Nitish Agarwal said, “Many have their ongoing schemes in draft TPs with conditional plan approval which is legal. But if the SC lifts the stay on previous HC order of not giving approval to projects in the draft TPs, then it will be a big setback for real estate market and buyers who have booked houses there.”