Unregistered Real Estate Project in Rajasthan: A Legal Analysis and Recovery Proceedings

In the corridors of the Rajasthan Real Estate Regulatory Authority, a pivotal case unfolded, pitting Vijay Pal against the renowned developer, Habitech Infra Ventures Pvt. Ltd. The case revolved around a real estate project, 'Habitech Town,' situated opposite Sota Nala Industrial Area, Kotputli, NH-5, Delhi Jaipur Highway. The crux of the matter lay in the non-registration of the project and the subsequent failure to refund the complainant.

The magnitude of this case cannot be underestimated, as it sheds light on the importance of adherence to real estate laws and regulations, safeguarding the interests of both developers and buyers alike.

Understanding the Factual Matrix of the Case

The plot thickened when the Rajasthan Real Estate Regulatory Authority, in an order dated 17th February 2022, directed the promoter, Habitech Infra Ventures Pvt. Ltd., to refund Vijay Pal a sum of Rs. 2.52 lac along with accrued interest. The order also entailed issuing a show-cause notice to the promoter for its failure to register the 'Habitech Town' project under sections 3, 59, and 60 of the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA.

Undeterred by the legal ramifications, the decree holder filed an application for execution on 13th March 2023, seeking a total claim amount of Rs. 4,03,248/-, which included interest. To compound matters, a Suo Moto notice was served to the promoter on 29th March 2022, but it chose to remain silent and unresponsive.

Non-Compliance and Its Consequences

The heart of the case lay in the promoter's deliberate non-compliance with the Authority's refund directions. This recalcitrance had a profound impact on Vijay Pal, leaving him without his rightfully owed funds. Despite several opportunities to address the issue, the promoter failed to appear before the Rajasthan Real Estate Regulatory Authority in the Suo Moto proceedings, raising serious concerns about its intentions and credibility.

The implications of non-compliance with real estate laws are severe and far-reaching. The Real Estate Act was put in place to ensure transparency, fairness, and protection for homebuyers. Non-registration of ongoing projects is a breach of trust, and consumers' trust is the cornerstone of any successful real estate venture.

Examination of Project Registration and Exemption

At the heart of the matter lay the ongoing project, 'Habitech Town.' Located in the picturesque lands of Rajasthan, it captured the imagination of many potential buyers. However, the developer's failure to register the project with the regulatory authority raised eyebrows.

The Real Estate Act laid down clear criteria for project registration, obligating promoters to adhere to the legal provisions diligently. The complainant's booking date, 23rd September 2015, and the Act's promulgation date became crucial in determining whether the project was eligible for exemption from registration.

Unfortunately for the promoter, the burden of proof was on its shoulders, and it miserably failed to demonstrate exclusion for project registration under Rule 4 of the Rajasthan Real Estate (Regulation and Development) Rules, 2017. Consequently, 'Habitech Town' was deemed liable for registration with the Authority.

Issuance of Directions and Penalties

In this high-stakes legal battle, Hon’ble Shri Salvinder Singh Sohata, Member of the Authority, played a pivotal role. Drawing from the facts presented, he issued crucial directions to address the non-compliance and uphold the integrity of real estate laws.

The first direction involved the transmission of the case to the concerned District Collector for initiating recovery proceedings under section 256 of the Rajasthan Land Revenue Act. This sought to recover the deposit made by the decree holder as claimed through the exemption application, ensuring justice for Vijay Pal.

The promoter was not let off the hook easily. Hon’ble Shri Salvinder Singh Sohata directed the developer to register the ongoing project within 45 days. Failure to do so would result in a penalty of Rs. 10,000/-, underscoring the seriousness of adhering to legal obligations.

Consequences and Conclusion

The implications of non-compliance reverberated through the corridors of the real estate industry in Rajasthan. This case served as a stark reminder that developers must be diligent in adhering to real estate laws and regulations. Buyers should feel confident that their investments are protected, and transparency should be the cornerstone of every real estate venture.

The role of the regulatory authority is pivotal in safeguarding the interests of buyers, fostering trust, and promoting transparency in the real estate sector. With vigilant adherence to RERA, the dream of homeownership can be realized without the fear of deceit or exploitation.

As the sun set on the legal battle between Vijay Pal and Habitech Infra Ventures Pvt. Ltd., the Rajasthan Real Estate Regulatory Authority had sent a clear message: non-compliance will be met with consequences, and the law will be the ultimate arbiter of justice in the realm of real estate. The case of the unregistered project in Rajasthan will undoubtedly serve as a reference point for future legal disputes in the dynamic landscape of the real estate industry.

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 (1) Comp. No. RAJ-RERA-C-2018-2690 before the Rajasthan Real Estate Regulatory Authority

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