Rajasthan Real Estate Regulatory Authority vs. Dharti Infra Project Pvt. Ltd.: A Case of Non-Compliance

In a recent case before the Rajasthan Real Estate Regulatory Authority (RERA) in Jaipur, the Authority took strict action against Dharti Infra Project Pvt. Ltd. for their failure to comply with an earlier order. The case, with file number F. 3(1773)RJ/RERA/P/2021, highlights the Authority's commitment to enforcing regulations and protecting the rights of homebuyers. This article delves into the details of the case, discussing the order, the response (or lack thereof) from Dharti Infra Project Pvt. Ltd., and the subsequent actions taken by the Authority.

Background

The case revolves around the non-execution of an order issued by the Rajasthan RERA on 20.07.2022. In that order, the Authority imposed a penalty on Dharti Infra Project Pvt. Ltd. under section 61 of the Real Estate (Regulation and Development) Act, 2016 (referred to as 'the Act'). The penalty amounted to Rs. 5,000 per quarter project report (QPR) that had not been filed by the respondent.

The Order and Non-Compliance

The order clearly stated that Dharti Infra Project Pvt. Ltd. was required to file the pending QPRs by paying the imposed penalty amount within 30 days from the date of the judgment. Failure to comply would result in further penalties, including increased penalties or even the ouster of the project under section 8 of the Act. However, despite the lenient view taken by the Authority due to this being the first violation, Dharti Infra Project Pvt. Ltd. failed to fulfill their obligations.

Court Proceedings and Invocation of Section 40

Advocate Garvit Agarwal, representing the Authority, informed the court that Dharti Infra Project Pvt. Ltd. had not taken any steps to pay the imposed penalty or file the pending QPRs. After six months had passed, the respondent promoter had shown no signs of compliance. In response to this, the counsel for the respondent requested the initiation of proceedings under section 40 of the Act.

The court, having examined the case record and considering the absence of the respondent despite being served a notice, concluded that Dharti Infra Project Pvt. Ltd. had no defense to present. In such circumstances, the court invoked the provisions of section 40 of the Act.

Attachment and Auction Process

Pursuant to section 40 of the Act, the court directed the Registrar of the Authority to attach the unsold part of the project in question, along with other properties listed in the file, including the bank account of Dharti Infra Project Pvt. Ltd. These properties would be auctioned to recover the ordered amount to be paid to the complainant.

The attached flats and properties would remain under attachment until the completion of the auction process and the payment of the ordered amount to the complainant. Only after full compliance with the order would the remaining attached units be released to the respondent for their use. It is important to note that if the respondent provides proof of having paid the ordered amount in full to the complainant before the conclusion of the attachment/auction process, the attachment and auction process will be terminated.

Conclusion

The Rajasthan Real Estate Regulatory Authority's case against Dharti Infra Project Pvt. Ltd. exemplifies the Authority's commitment to ensuring compliance with the Real Estate (Regulation and Development) Act, 2016. By imposing penalties for non-compliance and invoking the provisions of section 40, the Authority sends a strong message to developers that adherence to regulations is imperative. This case serves as a reminder that the interests of homebuyers must be safeguarded, and any violations will be met with appropriate action.

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(1773)RJ/RERA/P/2021 before the Rajasthan Real Estate Regulatory Authority

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