Rajasthan Real Estate Regulatory Authority vs. RICCO Developers: A Case of Non-Compliance and Legal Actions

The real estate sector in Rajasthan is regulated by the Rajasthan Real Estate Regulatory Authority (RERA). This governing body ensures transparency and accountability in the real estate market. One such case that exemplifies the importance of RERA's role is the dispute between Ravisa Devi and RICCO Developers Pvt. Ltd. Ravisa Devi, the complainant, has taken legal action against RICCO Developers due to their non-compliance with a previous order issued by the Rajasthan RERA. This article explores the background of the case, the arguments presented, the court's observations, and the enforcement actions taken by the Authority.

Background of the Case

Ravisa Devi filed a complaint against RICCO Developers, citing their failure to comply with the directives of the Rajasthan RERA. The complainant's grievances stem from an order issued on 22nd June 2022 by the Rajasthan RERA. Despite a significant amount of time passing since the order was issued, the respondent promoter, RICCO Developers, has allegedly not fulfilled the obligations outlined in the order.

Arguments and Prayers

The complainant's advocate presented arguments highlighting the non-compliance of the order by RICCO Developers. The advocate requested the Rajasthan RERA to take necessary action under section 40(1) of the Real Estate (Regulation and Development) Act, 2016 against the respondent promoter. Additionally, the complainant sought the refund of the specified amount along with the interest as directed by the Authority.

Court's Observations and Decision

Upon considering the arguments and reviewing the case, the court expressed its condemnation for the respondent promoter's intentional flouting of the Rajasthan RERA's orders. In response, the court decided to initiate proceedings under section 40 of the Act, as mentioned in the order dated 22nd June 2022. This section empowers the Authority to take enforcement actions against non-compliant developers.

Enforcement Actions

As a consequence of the respondent's non-compliance, the Rajasthan RERA directed the attachment of the unsold portion of the project and the bank account of RICCO Developers. The intention behind this action is to auction the attached flats/properties in order to recover the ordered amount owed to the complainant. The remaining attached units will only be released to the respondent promoter once the ordered amount is fully paid.

Disposal of the Case

The case will be considered disposed of once the respondent pays the ordered amount within the specified period. Failure to comply within the given timeframe will lead to severe consequences for the respondent. However, if the respondent provides proof of full payment to the complainant before the conclusion of the attachment and auction process, the process will be halted.

Conclusion

The case of Ravisa Devi vs. RICCO Developers exemplifies the significance of the Rajasthan RERA in safeguarding the rights of real estate consumers. The non-compliance of the respondent promoter has led to legal actions and enforcement measures by the Authority. The Rajasthan RERA plays a crucial role in ensuring transparency, fairness, and accountability in the real estate sector of Rajasthan.

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-2021-4091 before the Rajasthan Real Estate Regulatory Authority

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