Rajasthan RERA Imposes Penalties on Dep Shree Housing for Failure to Submit QPRs

In a recent case before the Rajasthan Real Estate Regulatory Authority (RERA), a show cause notice was issued to Dep Shree Housing, a prominent real estate promoter, for failing to submit Quarterly Progress Reports (QPRs) on the RERA web portal. This violation led to penalties being imposed on the promoter, as well as potential revocation of project registration. Let's delve into the details of this case and the subsequent order issued by the Authority.

Background

Case Number: F.3(1771)RJ/RERA/C/2021

Date of Order: 11.01.2023

The Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as 'the Act') and the Rajasthan Real Estate (Regulation and Development) Rules, 2017 (hereinafter referred to as 'the Rules') outline the obligations of real estate promoters, including the submission of QPRs on the RERA web portal. These reports provide essential project details for public viewing and are a crucial aspect of ensuring transparency and accountability in the real estate sector.

The Show Cause Notice

The Authority issued a show cause notice to Dep Shree Housing under sections 35, 36, 37, and section 38 read with section 7, 11(1), 61, and section 63 of the Act, as well as Rule 16(1)(D) of the Rules. The notice highlighted the promoter's non-compliance with the requirement to submit QPRs on the RERA web portal.

The notice emphasized that under section 11(1) of the Act and rule 16(1)(D) of the Rules, the promoter was obligated to upload QPRs on the RERA web portal, ensuring that project details are up-to-date and accessible to the public. The promoter was also reminded of previous orders issued by the Authority, directing the submission of pending QPRs within specified timelines.

Non-Compliance and Penalties

Upon reviewing the online project details, the Authority discovered that Dep Shree Housing had failed to submit the required QPRs within the given time frame. Consequently, the show cause notice presented three key questions to the promoter:

1. Why should a penalty of up to 5 percent of the estimated project cost not be imposed under section 61 of the Act for violating the provisions of section 11(1) of the Act and rule 16(1)(D) of the Rules?
2. Why should a per-day penalty not be imposed under section 63 of the Act for non-compliance with the Authority's previous order?
3. Why should the registration of the project in question not be revoked under section 7(1)(a) of the Act due to the alleged default in submitting QPRs as required by the Act, the Rules, and the Authority's directions?

The Court Proceedings

During the hearing, CA Prateek Rawat represented Dep Shree Housing through video conferencing. The promoter failed to provide a valid reason for the non-filing of the QPRs related to the mentioned project. The Authority highlighted that non-submission of QPRs constituted a violation of section 11(1) of the Act and rule 16(1)(D) of the Rules, making the promoter liable for penalties and potential project exclusion.

No reply was filed by the promoter, and all four QPRs remained pending. Considering this was the first violation, the Authority exercised leniency and imposed a penalty of Rs. 5,000/- per QPR under section 61 of the Act. The promoter was directed to file the pending QPRs within 30 days from the date of the judgment by paying the stipulated penalty amount and the associated delay processing charges. Failure to comply with the directive could result in further penalties, daily penalties, or project exclusion under section 8 of the Act.

Conclusion

The case between the Rajasthan Real Estate Regulatory Authority and Dep Shree Housing highlights the importance of complying with the regulatory obligations imposed on real estate promoters. Failure to submit Quarterly Progress Reports (QPRs) within the specified timelines can result in severe penalties and potential project registration revocation. The Authority's order serves as a reminder to all real estate promoters to adhere to the prescribed rules and regulations, ensuring transparency, accountability, and public trust 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(1771)RJ/RERA/C/2021 before the Rajasthan Real Estate Regulatory Authority

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