Offences and Penalty – under RERA Act

Provision	Promoter	Agent	Allottee
Non-registration of project/agent with RERA and continue to do so	Up to 10% of project cost and imprisonment of 3 years for continuous default	Penalty of INR10,000 per day during default tenure up to 5% of property cost
False information while making an application to REM	Up to 5% of the estimated project cost
Non-compliance with any provision of the Act	Up to 5% of the estimated project cost	Up to 5% of the property cost
Non-compliance with the aforesaid order of REM	Up to 5% of the estimated project cost	Up to 5% of cost property cost	Up to 5% of cost property cost
Non-compliance with the aforesaid order of the Appellate Tribunal	Up to 10% of cost and imprisonment of up of up to 3 years or both	Up to 10% of cost and imprisonment of up of up to 1 years or both	Up to 10% of cost and imprisonment of up of up to 3 years or both

RIGHTS AND DUTIES OF ALLOTTEES (SECTION 19):

RIGHTS AND DUTIES OF ALLOTTEES (SECTION 19):

1. entitled to obtain the information relating to sanctioned plans layout plans along with the specifications,
2. such other information as provided in the Act or the rules and regulations made thereunder or the Agreement for Sale.
3. entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services as agreed to in the agreement for sale,
4. entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas, as per the declaration/Affidavit  given by the promoter,
5. shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed and compensation, if the promoter fails to comply or is unable to give possession in terms of agreement for sale or due to discontinuance of his business or revocation of registration under the Act or the rules or regulations made thereunder,
6. shall be entitled to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building as the case may be, by the promoter,

DUTIES OF ALLOTTEES:

1. shall be responsible to make necessary payments in the manner and within the time as specified in the agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any,
2. shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid, as above,
3. the interest may be reduced when mutually agreed to between the promoter and such allottee,
4. every allottee of the apartment, plot or building as the case may be, shall participate towards the formation of an association or society or cooperative society of the allottees, or a federation of the same,
5. every allottee shall take physical possession of the apartment, plot or building as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot or buildings the case may be.
6. every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, within three months from the date of Promoter obtaining occupancy certificate.

Present Status and Challenges in Real Estate (RE)

1.       There is no separate Mother authority to regulate Real Estate –

a.       Eg., for Food – FSSAI

2.       Everyone is in the Business. Whether qualified, capable or not

3.       Time – Being Immovable property, the transaction initiation and completion time is long. Both the parties may dispute for the terms depends on the situation

4.       Easy to litigate by paying small fees  - undue advantages by both.

5.       No Transparency, Less Accountability

6.       More Disputes – more burden on judiciary

7.       No Financial Discipline

8.       Clarity and standardization of agreement /transactions