The Real Estate (Regulation
and Development) Bill, 2013, introduced in the Rajya Sabha on14th August
2013 provides for a speedy and specialized adjudication mechanism to
settle disputes between the promoter, buyer and real estate agents, thereby
de-clogging the civil courts and consumer forums, from disputes in the real
estate sector.
The Bill provides for
adjudication of disputes by an adjudicating officer, to be appointed by the
Authority not below the rank of Joint Secretary to the State Government, to
adjudge the compensation to be paid under sections 12 (Obligations of promoter
regarding veracity of advertisement or prospectus), 14 (Adherence to approved
plans and project specifications by promoter) and 16 (Return of amount and
compensation) of the Bill.
Also the Bill provides that
in case any person whose complaint in respect of matters covered under sections
12, 14 and section 16 is pending before the Consumer Disputes Redressal Forum
or the Consumer Disputes Redressal Commission or the National Consumer
Redressal Commission, established under section 9 of the Consumer Protection Act,
1986, on or before the commencement of this Act, he may, with the permission of
such Forum or Commission, withdraw the complaint pending before it and file an
application before the adjudicating officer under this Bill.
The adjudicating officer
while adjudging the quantum of compensation or interest is required to have due
regard to (a) the amount of disproportionate gain or unfair advantage, wherever
quantifiable, made as a result of the default; (b) the amount of loss caused as
a result of the default; (c) the repetitive nature of the default.
For disputes under any
other provision of the Bill, the matter is to be referred to the Regulatory
Authority for determination, which has powers to impose penalty or interest for
contraventions.
The Bill specifies the
penalties to be paid, for contravention of the provisions of the Act and the
penalties to be paid for non-compliance of the directions of Regulatory
Authority or the Appellate Tribunal, by the promoter or the real estate agent
or the allottee as the case may be.
The specific provisions are
as follows:
Contravention by the
Promoter:
Punishment for
non-registration under section 3:
Sec 51. (1) If any promoter
contravenes the provisions of section 3, he shall be liable to a penalty which
may extend up to ten percent of the estimated cost of the real estate project
as determined by the Authority.
(2) If any promoter does
not comply with the orders, decisions or directions issued under sub-section
(1) or continues to violate the provisions of section 3, he shall be punishable
with imprisonment for a term which may extend up to three years or with fine
which may extend to a further ten percent of the estimated cost of the real
estate project, or with both.
Penalty for contravention
of section 4:
Sec 52. If any promoter knowingly
provides false information or contravenes the provisions of section 4, he shall
be liable to a penalty which may extend up to five percent of the estimated
cost of the real estate project, as determined by the Authority.
Penalty for contravention
of other provisions of this Act:
Sec 53. If any promoter contravenes
any other provisions of this Act, other than that provided under section 3 or
section 4, or the rules or the regulations made thereunder, he shall be liable
to a penalty which may extend up to five percent of the estimated cost of the
real estate project as determined by the Authority.
Penalty for willful failure
to comply with orders of Authority by promoter:
Sec 55. If any promoter, who
willfully fails to comply with, or contravenes any of the orders or directions
of the Authority, he shall be liable to a penalty for every day during which
such default continues, which may cumulatively extend up to five percent of the
estimated cost of the real estate project as determined by the Authority.
Penalty for willful failure
to comply with orders of Appellate Tribunal by promoter:
Sec 56. If any promoter, who
willfully fails to comply with, or contravenes any of the orders, decisions or
directions of the Appellate Tribunal, he shall be liable to a penalty for every
day during which such default continues, which may cumulatively extend up to
ten percent of the estimated cost of the real estate project as determined by
the Appellate Tribunal.
Contravention
by the Real Estate Agent:
Penalty for
non-registration and contravention under sections 9 and 10:
Sec 54. If any real estate agent
willfully fails to comply with or contravenes the provisions
of section 9 or section 10, he shall be
liable to a penalty of ten thousand rupees for every day during which such
default continues, which may cumulatively extend up to five percent of the cost
of plot, apartment or building, as the case may be, of the real estate project,
for which the sale or purchase has been facilitated as determined by the
Authority.
Contravention
by the Allottee:
Penalty for willful failure
to comply with orders of Authority by allottee:
Sec 57. If any allottee, who
willfully fails to comply with, or contravenes any of the orders, decisions or
directions of the Authority he shall be liable to a penalty for the period
during which such default continues, which may cumulatively extend up to five
percent of the plot, apartment or building cost, as the case may be, as
determined by the Authority.
Penalty for willful failure
to comply with orders of Appellate Tribunal by allottee:
Sec 58. If any allottee, who
willfully fails to comply with, or contravenes any of the orders or directions
of the Appellate Tribunal, as the case may be, he shall be liable to a penalty
for the period during which such default continues, which may cumulatively
extend up to ten percent of the plot, apartment or building cost, as the case
may be, as determined by the Appellate Tribunal.
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