Gurugram RERA imposes Rs 50L fine on builder

The Real Estate Regulatory (RERA) Authority, Gurugram, has imposed a penalty of Rs 50 lakh on real estate promoter M/s Birla Estates Private Limited for the violation of Section 3 of the Real Estate (Regulation and Development) Act 2016.

Section 3 of the Act states that no promoter shall advertise without registering the project.

The promoter had applied for the registration of its upcoming real estate group housing colony, namely Birla Akira, located at Sector 31 and 32-A, Gurugram, under Section 4 of the RERA Act 2016. The promoter published the advertisement while documents of the project were still under scrutiny at the Authority and registration certificate was awaited.

The Authority order said, “The registration certificate (RC) shall be issued after the submission of the remaining deficiencies, online DPI and deposit of Rs 50 lakh penalty for the violation of Section 3 of the Act, 2016. ”The Authority repeatedly warned the promoter of legal consequences and had issued a show-cause notice to the promoter for the violation of the Act.“The promoter M/s Birla Estates Pvt Ltd is again advised not to indulge in or allow any other entity for the sale of the units in unregistered projects failing which legal consequences shall follow,” said the Authority order. The Authority also penalised Godrej Developers & Properties LLP, Signature Global Homes Private Limited, Shine Buildcon Pvt Ltd and AMB Infraventures Pvt Ltd for the non-compliance of the timeline provided under Section 4(2)(l)(C) of the Act 2016 with a payment of Rs 25 lakh each. It is worth noting Section 4(2)(l)(C) of the Act clearly states that the promoter shall abide by its declarations.

For the non-compliance of RERA registration conditions, the Authority also ordered the forfeiture of security deposits of six promoters M/s 1000 Trees Housing Pvt Ltd, M/s Keystone World Pvt Ltd, M/s JMK Holdings Pvt Ltd, M/s TARC Ltd, M/s Mapsko Builders Pvt Ltd and M/s Aviana Green Estates Pvt Ltd, totalling an amount of Rs 2.25 crore.

Meanwhile, Birla Estates CEO KT Jithendran said, “Birla Estates would like to clarify that no advertisement for the project has been published by the company. The company has reaffirmed its position before the RERA and has submitted its official response. Additionally, a police complaint has been filed, necessary actions have been taken to block unauthorised websites and public notices have been issued to caution the public against unauthorised advertisements. As a responsible real estate developer, Birla Estates is committed to upholding the highest standards of transparency and integrity. We adhere strictly to all RERA regulations and remain dedicated to ensuring compliance with all legal and regulatory requirements.”