Rajasthan RERA Takes Firm Action Against Swastik Homebuild Pvt. Ltd. for Non-Compliance

The Rajasthan Real Estate Regulatory Authority, Jaipur, recently issued an order in Case No. RAJ-RERA-C-2020-3972, involving a complaint filed by Sandeep Bhardwaj against Swastik Homebuild Pvt. Ltd. The case pertains to non-compliance with an earlier order issued by the Authority. This article provides an in-depth analysis of the case, outlining the facts, the Authority's order, and its implications for the parties involved.

Case Background

Sandeep Bhardwaj, the complainant, approached the Rajasthan Real Estate Regulatory Authority with a complaint against Swastik Homebuild Pvt. Ltd., the respondent. The complainant alleged non-compliance with an order dated 14.06.2022 issued by the Authority.

The Authority's Order

On 14.06.2022, the Rajasthan Real Estate Regulatory Authority passed an order in favor of the complainant. The key points of the order were as follows:

1. The respondent was directed to refund the entire amount deposited by each complainant, including Sandeep Bhardwaj, along with interest.
2. The interest rate was prescribed in accordance with the Rajasthan Real Estate (Regulation & Development) Rules, 2017, at SBI highest MCLR + 2%.
3. The respondent was given 45 days from the date of the order to comply with the refund directive.
4. A compliance report had to be submitted to the Authority within 15 days thereafter.
5. Failure to comply within the specified timeframe would result in the complainants being entitled to recover the ordered amount from the respondent's assets through execution of the decree under section 40(1) of the Real Estate (Regulation and Development) Act, 2016.

Non-Compliance and Proceedings

Despite the order being passed on 14.06.2022, the respondent failed to comply with the directions of the Authority. Even after a period of more than six months, the respondent showed disregard for the order, leading the Authority to initiate proceedings under section 40 of the Act.

Authority's Directive

In light of the respondent's willful non-compliance, the Rajasthan Real Estate Regulatory Authority, through its member Shri Shailendra Agarwal, issued a directive on 18.01.2023. The directive ordered the attachment of the unsold portion of the project in question, along with other properties owned by the respondent, including their bank account. The attached flats and properties would be auctioned to recover the ordered amount to be paid to Sandeep Bhardwaj, the complainant. Any remaining balance would be returned to the respondent.

The attached flats would remain attached until the auction process is completed and the ordered amount is paid to the complainant. Once the order is fully complied with, the remaining attached units can be released to the respondent for their use. However, the attachment and auction process can be terminated if the respondent provides proof of having paid the ordered amount in full to the complainant at any time before the conclusion of the attachment/auction process.

Conclusion

The Rajasthan Real Estate Regulatory Authority's order in Case No. RAJ-RERA-C-2020-3972 highlights the significance of compliance with the Authority's directives. In this case, Swastik Homebuild Pvt. Ltd. failed to fulfill their obligations as per the order dated 14.06.2022, leading to severe consequences. The Authority, in its directive issued on 18.01.2023, invoked section 40 of the Act, initiating proceedings to attach and auction properties to recover the ordered amount. This serves as a reminder to real estate promoters and developers of the importance of adhering to regulatory obligations, ensuring fair treatment of buyers and maintaining trust in the real estate market.

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-2020-3972 before the Rajasthan Real Estate Regulatory Authority

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