Violation and Show Cause Notice: Urban Improvement Trust's Failure to Submit QPRs

The Rajasthan Real Estate Regulatory Authority (RERA) plays a crucial role in ensuring transparency and accountability in the real estate sector in Rajasthan, India. Recently, a case involving the Urban Improvement Trust in Bhilwara has brought attention to the non-submission of Quarterly Progress Reports (QPRs) on the RERA web portal. In this article, we will delve into the details of the case and shed light on the implications of failing to comply with the RERA guidelines.

Background of the Case

To comprehend the significance of this case, it is essential to understand the framework established by the Real Estate (Regulation and Development) Act, 2016. In Rajasthan, the rules governing real estate are defined by the Rajasthan Real Estate (Regulation and Development) Rules, 2017. These regulations aim to safeguard the interests of homebuyers and ensure timely completion of real estate projects.

Violation and Show Cause Notice

The Urban Improvement Trust in Bhilwara received a show cause notice from the Rajasthan RERA for their failure to submit QPRs on the designated RERA web portal. According to the notice, the Trust was obligated under section 11(1) of the Act and rule 16(1)(D) of the Rules to upload QPRs, providing up-to-date information on project progress for public viewing.

Respondent's Obligations and Authority's Orders

The show cause notice emphasized the importance of adhering to the Authority's orders and previous directives. The respondent was reminded of the Authority's order, which required the submission of pending QPRs and subsequent reports within specified timeframes. Failure to comply with these obligations raised concerns regarding the transparency and accountability of the real estate project in question.

Failure to Comply and Penalties

Upon review, it was discovered that the respondent had not submitted the required QPRs within the given timeframe. Non-compliance with section 11(1) of the Act and rule 16(1)(D) of the Rules exposed the respondent to penalties outlined in the Act. Section 61 of the Act authorizes penalties of up to 5 percent of the estimated project cost for such violations. Additionally, section 63 of the Act allows for per-day penalties for non-compliance with the Authority's orders.

Hearing and Non-Appearance

During the hearing, the respondent failed to appear before the Authority despite being duly summoned. The non-appearance was deemed a deliberate act, indicating a lack of defense or explanation from the respondent's side. This absence reinforced the Authority's concerns and strengthened the case against the respondent.

Imposition of Penalties and Compliance Deadline

Considering this was the first violation, the Authority opted for a lenient approach. A penalty of Rs. 5,000/- per QPR was imposed under section 61 of the Act. The respondent was instructed to submit the pending QPRs within 30 days from the date of the judgment. It was emphasized that failure to comply within the specified period could result in increased penalties, daily penalties, or even project ouster under section 8 of the Act.

Consequences of Non-Compliance

This case serves as a stark reminder to real estate promoters in Rajasthan of the importance of adhering to RERA guidelines. Non-submission of QPRs can have severe consequences, including significant financial penalties and potential project ouster. Adhering to the Authority's directions and regulations is essential to maintain transparency, protect the interests of homebuyers, and ensure the timely completion of real estate projects 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 File No. F.3(653)RJ/RERA/C/2017 before the Rajasthan Real Estate Regulatory Authority

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