The Rajasthan Real Estate Regulatory Authority (RERA) has been at the forefront of ensuring transparency and accountability in the real estate sector of Rajasthan. In one such notable case, Complainant Manish Malhotra sought justice against Suparas Homz Pvt. Ltd. (formerly Paras City Homes Pvt. Ltd.) for non-compliance with an order issued by the Authority on 14th December 2022. Presided over by Shri Shailendra Agarwal, this case highlights the significance of RERA in protecting the rights of consumers and enforcing regulations within the real estate industry.
Overview of the Real Estate (Regulation and Development) Act, 2016
At the heart of this case lies the Real Estate (Regulation and Development) Act, 2016, commonly known as the Real Estate Act. The Act was introduced to regulate and promote transparency in the real estate sector in India. Its primary objective is to safeguard the interests of homebuyers and ensure fair practices among developers. Under the Act, RERA was established as an authority responsible for overseeing real estate projects, resolving disputes, and enforcing compliance with regulations.
Summary of the Complaint and Order
The complaint filed by Manish Malhotra revolves around the respondent, Suparas Homz Pvt. Ltd., failing to comply with the order issued by RERA on 14th December 2022. The order directed Suparas Homz Pvt. Ltd. to refund the entire amount of Rs.8.60 crore, which was paid by the complainant, along with interest at the State Bank of India's Highest Marginal Cost of Lending Rate (MCLR) plus 2%. The refund was to be completed within 45 days of the order.
Non-Compliance by the Respondent
Despite the order being passed more than three months ago, the respondent, Suparas Homz Pvt. Ltd., has willfully disregarded the directions of the court. Manish Malhotra, the complainant, rightfully justifies initiating proceedings under section 40 of the Real Estate Act, highlighting the respondent's non-compliance and the need for appropriate action to ensure justice.
Proceedings under Section 40 of the Real Estate Act
Section 40 of the Real Estate Act holds immense significance in enforcing the court's order and penalizing non-compliance. The Act empowers RERA to take necessary action against defaulting parties. In this case, RERA directs the attachment of the unsold part of the project and the respondent's bank account, allowing for the auction of flats and properties to recover the ordered amount. The Registrar of the Authority plays a vital role in executing the auction process, ensuring the complainant receives the due payment.
Auction Process and Recovery of Ordered Amount
To recover the ordered amount, RERA follows a meticulous process. The attached flats and properties are auctioned, and the proceeds are utilized to pay the complainant. Any remaining balance is returned to the respondent. The Registrar of the Authority oversees the entire auction process, ensuring transparency and fair distribution of funds. This approach provides a means for the complainant to receive rightful compensation while discouraging non-compliance among developers.
Release of Attached Units and Completion of the Order
Upon complete compliance with the court's order, the remaining attached units can be released to the respondent for their use. However, the release is contingent upon the respondent providing conclusive proof of full payment to the complainant, which halts the attachment and auction process. Once the order is fully implemented, the case is considered concluded, and no further action is required.
Conclusion and Implications of the Case
The Rajasthan Real Estate Regulatory Authority case against Suparas Homz Pvt. Ltd. showcases the commitment of RERA in upholding consumer protection and ensuring adherence to real estate regulations. By providing a platform for dispute resolution and enforcement of court orders, RERA plays a pivotal role in maintaining transparency, accountability, and fairness within the real estate sector. The case serves as a reminder that the rights and interests of homebuyers are protected under the Real Estate Act, contributing to a more trustworthy and reliable real estate industry in 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-2021-4714 before the Rajasthan Real Estate Regulatory Authority
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