Ansal Housing Case: Non-Registration of Ongoing Project and Legal Implications

In the realm of real estate, adherence to regulations and proper project registration are crucial aspects that developers must uphold. The Ansal Housing case, in conjunction with the Rajasthan Real Estate Regulatory Authority (RERA Rajasthan), sheds light on the ramifications faced by developers who fail to comply with these legal requirements.

Background: The Significance of Real Estate Regulations

The Real Estate (Regulation and Development) Act, 2016, known as 'the Act,' holds immense importance in governing the real estate sector. With the aim of ensuring transparency, accountability, and timely project completion, the Act establishes regulatory bodies like the Rajasthan Real Estate Regulatory Authority (RERA Rajasthan). The RERA is entrusted with overseeing real estate projects in Rajasthan, safeguarding the interests of both buyers and developers.

The Ansal Housing Case and RERA's Directions  

The case in question involves Anil Chelani's dispute with Ansal Housing, where the RERA issued a series of crucial directions. These directions, issued on a prior occasion, require Ansal Housing to register the project as an "on-going category" within 45 days. Failure to comply incurs penalties for non-registration and violation of statutory provisions. Additionally, Ansal Housing must pay interest for the delayed possession offer and provide possession to the applicant as per the Act's provisions. The Registrar of the Authority is tasked with expediting compliance with these directions.

Notice and Non-Compliance  

Following the issuance of the directions, a notice was served to Ansal Housing regarding the non-registration of the project. Despite receiving multiple notifications, the developer failed to fulfill their obligation. During subsequent hearings, Ansal Housing's counsel raised objections, claiming that proper notice was not served for the registration requirement. However, the Authority clarified that even if a settlement had been reached between Anil Chelani and the promoter, the project's registration obligation remains intact.

Jurisdiction and Obligation for Registration  

Ansal Housing's advocate contested the Authority's jurisdiction in the matter. Nonetheless, the Authority firmly asserted that a completion certificate obtained after the Act's promulgation does not exempt the project from registration. The ongoing nature of the project, coupled with the post-promulgation completion certificate, deems the project liable for registration. Despite opportunities provided to Ansal Housing for compliance, the promoter deliberately evaded their obligations.

Deliberate Non-Compliance and Prosecution  

Ansal Housing's persistent non-compliance with the registration requirement has raised concerns. After careful consideration, the Authority has decided to initiate prosecution proceedings against the promoter under Section 59(2) of the Act. Such action reflects the serious consequences faced by developers who intentionally avoid compliance with regulatory mandates.

Conclusion:  

In conclusion, the Ansal Housing case serves as a stern reminder of the significance of project registration and compliance with real estate regulations. The RERA Rajasthan, acting as a regulatory body, ensures the enforcement of such obligations. Developers, like Ansal Housing, must understand the gravity of adhering to these regulations and fulfilling their responsibilities. Failure to do so can result in severe penalties and legal consequences, underscoring the importance of maintaining transparency and accountability within the real estate sector.

Note: The information provided in this article about Rajasthan Real Estate Regulatory Authority (RRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the F.16 (72)RAJ/RERA/C/2021 before the Rajasthan Real Estate Regulatory Authority

We hope you found our blog insightful and engaging! We appreciate your time and interest. If you enjoyed reading it, don't forget to subscribe to our newsletter to receive regular updates on our latest content. Visit our website www.reunionhq.in to know more.