R S R Elite Developers Pvt. Ltd. Faces Penalties for Non-Submission of Quarterly Progress Reports

In a recent case between the Rajasthan Real Estate Regulatory Authority (RERA) and R S R Elite Developers Pvt. Ltd., the issue of non-submission of Quarterly Progress Reports (QPRs) on the RERA web portal was brought to the forefront. The case was filed under sections 35, 36, 37, and section 38 read with section 7, 11 (1), 61, and section 63 of the Real Estate (Regulation and Development) Act, 2016. This article aims to delve into the details of the case, the legal provisions violated, and the resulting penalties imposed by the Authority.

Case Details:

Case Number: F.3(769)RJ/RERA/C/2018

Date of Order: 11.01.2023

Background:

The respondent, R S R Elite Developers Pvt. Ltd., received a show cause notice from the Rajasthan Real Estate Regulatory Authority, Jaipur, for their failure to submit QPRs on the RERA web portal. As per the notice, the respondent was reminded of their obligation under section 11(1) of the Act and rule 16(1)(D) of the Rajasthan Real Estate (Regulation and Development) Rules, 2017, to upload QPRs and update project details accessible to the public. The Authority's previous orders on the matter were also referenced.

Violation and Penalties:

Upon review of the online project details, it was discovered that the respondent had not submitted the required QPRs within the specified timeframe. Consequently, the show cause notice listed three main points of violation and associated penalties:

1. Violation of Section 11(1) and Rule 16(1)(D): The respondent failed to comply with the provision requiring the submission of QPRs, making them liable for penalties under section 61 of the Act. The penalties imposed can amount to 5 percent of the estimated project cost, as determined by the Authority.
2. Non-Compliance with Authority's Order: Despite the Authority's earlier directives, the respondent did not submit the pending QPRs as required. This non-compliance made them liable for per-day penalties under section 63 of the Act, which can cumulatively extend to 5 percent of the estimated project cost determined by the Authority.
3. Revocation of Registration: Considering the alleged default in submitting QPRs, the Authority raised the possibility of revoking the registration of the project in question under section 7(1)(a) of the Act.

Court Proceedings and Judgment:

During the court hearing, CA Prateek Rawat, representing the respondent, stated that all the QPRs for the projects "Avadh Homes" and "Chitwan Residency" had been filed and uploaded on the Authority's web portal. However, no valid reasons were presented for the non-filing of the pending QPRs for the project "Advaita Homes" mentioned in the notice.

In light of the violation, the court took a lenient view but imposed a penalty of Rs. 5,000/- per QPR for the non-filed QPRs related to the project "Advaita Homes." The respondent was directed to submit the pending QPRs within 30 days, along with the payment of the imposed penalty and the delay processing charges. Failure to comply could result in further penalties, increased daily penalties, or even exclusion of the project under section 8 of the Act.

Conclusion:

The case between the Rajasthan Real Estate Regulatory Authority and R S R Elite Developers Pvt. Ltd. highlights the importance of complying with the legal obligations under the Real Estate (Regulation and Development) Act, 2016. The non-submission of Quarterly Progress Reports on the RERA web portal led to penalties being imposed on the respondent. It serves as a reminder for all real estate developers to adhere to the regulatory requirements and submit the necessary reports in a timely manner to ensure transparency and accountability 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 File No. F.3(769)RJ/RERA/C/2018 before the Rajasthan Real Estate Regulatory Authority

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