Non-Compliance with Real Estate Regulations: Adarsh Thoughtworks Pvt. Ltd. Faces Penalties and Implications

The real estate sector in Rajasthan is governed by the Real Estate (Regulation and Development) Act, 2016 (the Act) and the Rajasthan Real Estate (Regulation and Development) Rules, 2017 (the Rules). These regulations play a crucial role in ensuring transparency and protecting the interests of buyers. However, non-compliance with these regulations can lead to severe penalties and other legal consequences. Let's delve into a recent case that sheds light on the implications of non-compliance.

Understanding the Violations

Under the Act and Rules, promoters are required to submit Quarterly Progress Reports (QPRs) on the RERA web portal. These reports provide up-to-date information about the progress of their projects, allowing the public to make informed decisions. Failure to submit QPRs is a violation of the Act and Rules, compromising transparency and accountability.

Show Cause Notice and Penalties

The Rajasthan Real Estate Regulatory Authority issued a show cause notice to Adarsh Thoughtworks Pvt. Ltd., a promoter, for their non-compliance with the QPR submission requirement. The notice highlighted the potential penalties they could face. Section 61 of the Act empowers the Authority to impose a penalty of up to 5 percent of the estimated project cost on the promoter for such violations. Additionally, section 63 of the Act allows for per-day penalties for non-compliance with previous orders.

Hearing and Absence of the Respondent

Despite being served with summons, the respondent failed to appear before the Authority during the hearing. This absence is considered willful and defenseless. The respondent's non-appearance reflects their lack of defense or explanation regarding the violations. It strengthens the case against them and highlights their disregard for the regulatory requirements.

Analysis of the Case

The non-submission of QPRs by Adarsh Thoughtworks Pvt. Ltd. violates section 11(1) of the Act and rule 16(1)(D) of the Rules. However, considering this as the first violation, the Authority opted for a lighter penalty. They imposed a penalty of Rs. 5,000/- per QPR, requiring the respondent to file the pending reports within a specific timeframe. The penalty serves as a reminder of the importance of complying with the Act and Rules.

Consequences of Non-Compliance

Further non-compliance by the respondent can lead to increased penalties, daily penalties, or even project ouster under section 8 of the Act. These consequences can significantly impact the viability and reputation of the project. It is crucial for promoters to understand the gravity of non-compliance and take prompt action to rectify any violations.

Conclusion

The case of Adarsh Thoughtworks Pvt. Ltd. serves as a reminder of the stringent regulations governing the real estate sector in Rajasthan. Non-compliance with the Act and Rules can result in penalties, project ouster, and reputational damage. Promoters must prioritize adherence to these regulations to maintain transparency, protect the interests of buyers, and foster a trustworthy real estate environment.

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(1791)RJ/RERA/C/2021 before the Rajasthan Real Estate Regulatory Authority

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