Asthvinayak Buildhome LLP Case: Non-Submission of Quarterly Progress Reports Leads to Regulatory Action by Rajasthan RERA

The real estate industry plays a crucial role in the economic development of any region. To ensure transparency and protect the interests of homebuyers, the Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted in India. The Rajasthan Real Estate Regulatory Authority (RERA), Jaipur, is responsible for regulating and overseeing real estate activities in the state of Rajasthan. In this article, we will delve into a recent case where a promoter faced penalties and possible revocation of registration for failing to submit Quarterly Progress Reports (QPRs) on the RERA web portal.

Case Background:

File No. F.3(2000)RJ/RERA/C/2022 involved a promoter named Asthvinayak Buildhome LLP as the respondent. The promoter was issued a show cause notice by RERA under various sections of the Act and Rules, citing non-submission of QPRs on the RERA web portal. The notice emphasized the legal obligation for promoters to update project details through QPRs for public viewing. The promoter was also reminded of previous orders and directives related to timely submission of QPRs.

Allegations and Notice:

RERA alleged that the respondent promoter had failed to submit the required QPRs within the specified time. The show cause notice sought an explanation from the promoter regarding potential penalties and revocation of registration. The three main issues raised in the notice were as follows:

1. Imposition of penalties: RERA sought to impose penalties of up to 5 percent of the estimated project cost on the promoter under section 61 of the Act for violating the provisions of section 11(1) of the Act and rule 16(1)(D) of the Rules.
2. Per-day penalty: RERA intended to impose a per-day penalty on the promoter under section 63 of the Act for non-compliance with previous orders and directives issued by the Authority.
3. Revocation of registration: RERA contemplated revoking the registration of the project under section 7(1)(a) of the Act due to the alleged default in submitting QPRs as required by the Act, Rules, and directives.

Legal Proceedings:

During the proceedings, the respondent promoter did not appear before RERA, but it was informed by the Legal Officer, Adv. Garvit Agarwal, that the pending QPRs had been filed and uploaded on the web portal of the Authority.

Decision and Outcome:

After careful consideration of the case record and online records of the Authority, Shri Shailendra Agarwal, Hon'ble Member of RERA, confirmed that the pending QPRs had indeed been filed and uploaded on the web portal subsequent to the issuance of the show cause notice. Consequently, since the respondent had complied with the requirements, the notice was discharged, and the proceedings were dropped.

Conclusion:

The case discussed above serves as an important reminder for real estate promoters to fulfill their obligations in accordance with the RERA guidelines. Timely submission of Quarterly Progress Reports (QPRs) on the RERA web portal is crucial for transparency and accountability in the real estate sector. Failure to comply with these requirements can lead to penalties, including fines and potential revocation of project registrations. By adhering to the regulatory framework and fulfilling their obligations, promoters can ensure a fair and transparent real estate market that protects the interests of all stakeholders, particularly homebuyers.

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 File No. F.3(2000)RJ/RERA/C/2022 before the Rajasthan Real Estate Regulatory Authority

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