Failure to Comply: Rajasthan RERA Imposes Penalties on Shree Sainath Infratech Pvt. Ltd.

The Rajasthan Real Estate Regulatory Authority (RERA), recently issued an order in Complaint No. RAJ-RERA-C-2019-3278, which involved a dispute between Adesh Kumar Yadav and Shree Sainath Infratech Pvt. Ltd. The case revolves around a real estate project named "Sai City." In this article, we will provide a detailed overview of the case, including the facts, legal proceedings, and the final order issued by the RERA.

Background:

Adesh Kumar Yadav, the complainant, approached the RERA with a complaint under section 31 of the Real Estate (Regulation and Development) Act, 2016 (referred to as 'the Act'). The complaint was related to the "Sai City" project, and the case was registered as Complaint No. RAJ-RERA-C-2019-3278.

Order and Directions:

On 27.12.2021, the RERA passed an order in the case, which included the following directions:

1. Refund: Shree Sainath Infratech Pvt. Ltd., the respondent, was ordered to refund an amount of Rs. 3,70,225/- to Adesh Kumar Yadav, the complainant, within 45 days from the date of the order. This refund was to include interest at the prescribed rate of 'SBI highest MCLR + 2 per cent' (i.e., 9.30 per cent) from 25.12.2019 until the payment was made.
2. Registration: The respondent, Shree Sainath Infratech Pvt. Ltd., was directed to apply for the registration of the project as an ongoing project within 45 days from the date of the order. Failure to comply would result in penalties under section 59(1) and section 63 of the Act, as well as potential prosecution under section 59(2) of the Act.

Non-Compliance and Execution Proceedings:

Despite the order, Shree Sainath Infratech Pvt. Ltd. failed to comply with the directions. Subsequently, Adesh Kumar Yadav filed an application for execution, leading to the issuance of a notice for execution of the order on 11.03.2022. However, Shree Sainath Infratech Pvt. Ltd. neither complied with the order nor responded to the execution notice. The respondent also failed to appear for the hearing scheduled for 12.09.2022.

Penalties and Further Action:

Based on Shree Sainath Infratech Pvt. Ltd.'s willful avoidance of the execution proceedings and non-compliance with the order, the RERA took the following actions:

1. Imposition of Penalty: The RERA imposed a penalty of Rs. 10.00 lakh on Shree Sainath Infratech Pvt. Ltd. under section 59(1) of the Act for failing to register the "Sai City" project, as directed by the authority.
2. Prosecution: The RERA directed the Registrar to file a prosecution against Shree Sainath Infratech Pvt. Ltd. under section 59(2) of the Act in the judicial court of jurisdiction. The prosecution was to be initiated through the Prosecution Officer of the Authority.

Extended Deadline and Consequences:

Shree Sainath Infratech Pvt. Ltd. was granted an additional 45 days to pay the penalty amount and refund the ordered amount to Adesh Kumar Yadav. The respondent was instructed to submit a compliance report by the next hearing date, which was set as 07.11.2022. Failure to comply would result in further action under section 40 of the Act to enforce the initial order.

Non-Compliance and Recovery Certificate:

Once again, Shree Sainath Infratech Pvt. Ltd. failed to appear for the hearing on 07.11.2022 and did not comply with the order. As a result, the RERA determined that a recovery certificate should be issued under section 40(1) of the Act. This certificate would be issued to the District Collector, Tonk, for the remaining refund amount, interest, and the penalty of Rs. 10,00,000/-.

Conclusion:

The case of Adesh Kumar Yadav vs. Shree Sainath Infratech Pvt. Ltd. before the Rajasthan Real Estate Regulatory Authority highlights the importance of complying with RERA's orders and directives. Despite clear instructions and multiple opportunities to rectify the situation, Shree Sainath Infratech Pvt. Ltd. failed to fulfill their obligations, leading to penalties and legal consequences. This case serves as a reminder of the authority's commitment to protecting the rights and interests of homebuyers and ensuring transparency in 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 Complaint No. RAJ-RERA-C-2019-3278 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.