Builders who fail to deliver the schemes on time and fail to provide the pre-decided amenities should consider this as a warning. Real Estate Regulatory Authority (RERA) has started taking action against errant builders and recently penalized a Vadodara based builder with Rs 3 lakh for failing to complete the project in time. Jayesh Patel, a builder in Vadodara, had failed to hand over the possession of the flats in his scheme.
A person, keeping his identity a secret, filed a complaint against Jayesh by sending an e-mail to RERA. The officials of RERA summoned Jayesh on January 1where he accepted that he had failed to register the project through 70 percent of the work had been completed. Consequently, authorities imposed a penalty of Rs 3 lakh penalty on the builder. He was also instructed to register the project within 15 days.
RERA has been granted the authority to fine a builder for up to 10 percent of the project cost for failing to register it. Jayesh’s project amounted to Rs 3 crore but RERA took note of the fact that the builder faced difficulties in selling his units besides delay in construction work due to lack of funds. Accordingly, he was fined Rs 3 lakh. Dharmendra Patel, a Vadaj resident, said, “My family suffered a lot when our builder did not give us possession of our house on time. Now, however, the developers will have to complete the project and hand over possession on time. They will also be penalized for flouting norms, thanks to RERA.”
Jaxay Shah, President of CREDAI, said, “It is important for every developer to abide by the rules under the Act. Also, by giving possession of the property on time the developer is only fulfilling his responsibility and obliging the buyer.”
Ajay Patel, Senior V-P GIHED-CREDAI, said, “Guidelines are clear in RERA. If the project is ongoing then one must register it with RERA. Developers face trouble when they take the Act lightly. The developer also needs to take BU permission before selling the property. However, the underlined fact is that the builder should not take the Act lightly and abide by the guidelines.”