RERA files another criminal complaint against developer : The Tribune India

RERA files another criminal complaint against developer

GBP violates Act in a project at Zirakpur; notices issued to project directors for filing reply by February 9, 2022

RERA files another criminal complaint against developer

The Real Estate Regulatory Authority (RERA), Punjab, has filed another criminal complaint against Gupta Builders and Promoters Private limited (GBP) before a Chandigarh court. - File photo



Ramkrishan Upadhyay

Tribune News Service

Chandigarh, November 3

The Real Estate Regulatory Authority (RERA), Punjab, has filed another criminal complaint against Gupta Builders and Promoters Private limited (GBP) before a Chandigarh court. This time the criminal complaint has been filed in a case related with the City Central Project, situated at Kishanpur and Dhakoli villages at Zirakpur. In the complaint filed through advocate Siddharth Pandit, RERA Punjab alleged that the builder had violated the RERA Act in the project.

As per the complaint the RERA imposed a penalty of Rs75 lakh on the builder on May 6, 2019, for launching the project without its approval.

But, the builder has paid only two installments of Rs5 lakh each and then defaulted. The builder failed to comply with the orders and was liable to be punished under Section 59(2), RERA Act.

The criminal complaint has been filed under Section 80 to summon company directors, including company Satish Kumar Gupta, Pradeep Kumar Gupta and Raman Kumar Gupta, in order to prosecute them under Sections 59(1) and 59 (2) for non compliance of orders/directions issued by RERA Punjab under Section 59(1), RERA Act.

Siddharth Pandit told the court, “Section 3 of the Act makes it mandatory for promoters’ to prior register the real estate project with Real Estate Regulatory Authority.”

“The Act imposes a bar upon promoters to advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building without registration,” added Pandit.

When it came to the notice of the authority that the builder was violating provision of RERA a penalty was imposed as per the Act, said Pandit. “The violation of the RERA order invites imprisonment for a term, which may extend up to three years or with fine, which may extend up to a further 10 per cent of the estimated cost of the real estate project, or with both,” added Pandit.

Pandit prayed to the court that in view of this, directors may be summoned, prosecuted and punished in accordance with provisions u/s Section 80 read with Sections 59(1), 59(2) for violation of Section 3, Real Estate (Regulations and Development) Act, 2016. The group is already in the thick of controversy after its directors allegedly left projects midway and investors were filing cases every day in courts and before the police.

Court has issued notices to directors for February 09, 2022, for filing reply. Earlier, RERA had filed a criminal complaint for launching residential projects in New Chandigarh Smart City/GBP Smart City at Togan village in Mohali without necessary RERA approval. In that case also RERA imposed a penalty of Rs1.50 crore on the builder. Later, the builder paid only Rs40 lakh. Till date, the builder had not deposited the remaining amount and violated RERA Act.

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