Non-Compliance Consequences: Rajasthan RERA Takes Strong Action Against M R Township Developers Pvt. Ltd.

In a recent case before the Rajasthan Real Estate Regulatory Authority (RERA) in Jaipur, the Authority took suo moto action against M R Township Developers Pvt. Ltd. for non-execution of a previous order. The case, with file number F. 3(739)RJ/RERA/P/2018, highlights the consequences of failing to comply with regulatory directives under the Real Estate (Regulation and Development) Act, 2016. This article provides an in-depth analysis of the case, outlining the sequence of events, the legal implications, and the resulting order passed by the Authority.

Background

The case was brought before the Court due to the non-execution of an order dated 18.05.2022, issued by the Rajasthan RERA in the aforementioned suo moto case. The order imposed a penalty of Rs. 5,000/- per quarter progress report (QPR) under section 61 of the Real Estate Act. Additionally, the respondent promoter, M R Township Developers Pvt. Ltd., was directed to file the pending QPRs within 30 days, along with the payment of the penalty amount and delay processing charges.

Lack of Compliance

Despite the clear instructions outlined in the order, the respondent promoter failed to comply within the stipulated timeframe. Advocate Garvit Agarwal, representing the Authority, informed the Court that no steps were taken by the respondent to deposit the penalty or file the pending QPRs. A period of seven months had passed since the order was issued, indicating a lack of adherence to regulatory requirements.

Invocation of Section 40 of the Act

Given the respondent's non-compliance and their absence during the proceedings, the Court inferred their defenselessness. Consequently, the Court decided to invoke the provisions of section 40 of the Real Estate Act. This section empowers the Authority to take necessary action, including the attachment of properties and bank accounts, to recover the ordered amount.

Attachment and Auction of Properties

In line with the powers conferred by section 40 of the Act, the Court directed the Registrar of the Authority to attach the unsold portion of the project and other properties associated with the respondent promoter. The Court ordered the auction of the attached flats and properties to recover the owed amount, which is to be paid to the complainant.

Release of Attached Units

The order specified that the remaining attached flats would remain under attachment until the auction process is completed and the ordered amount is fully paid to the complainant. However, once the order's compliance is ensured, the remaining attached units can be released to the respondent for their use.

Conclusion

The Rajasthan Real Estate Regulatory Authority's case against M R Township Developers Pvt. Ltd. serves as a stern reminder of the legal consequences faced by non-compliant entities under the Real Estate (Regulation and Development) Act, 2016. The Authority's order, passed after the respondent promoter failed to adhere to previous directives, authorized the attachment and auction of properties to recover the owed amount. This case underscores the importance of timely compliance and the serious ramifications of disregarding regulatory obligations 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 File No. F. 3(739)RJ/RERA/P/2018 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.