AHMEDABAD: The Gujarat Real Estate Regulatory Authority (Guj RERA) has finally ordered developers to pay fines for violating the rules. One developer was fined for booking and selling properties before registering them with the concerned authority. Another was fined for collecting more than 10% of the property value before signing a sales contract.
Booked apartments before registering
The authorities in the first case imposed a fine of Rs 27.38 lakh on Devnandan Builders Private Limited, for reserving apartments under their Devnandar Parisar-2 scheme in Adalaj. They had booked the apartments before registering it with RERA. The developer gave an explanation that the company applied for registration in 2017, but it was rejected. Further he said, he will submit the project certificate as soon as the CA prepares it. RERA was not satisfied and noted that the developer had sold or reserved 205 units in the project prior to the submission of the project certificate. So, the company was fined approximately Rs 27 lakhs.
Received 10% as advance payment-
In the second case, authorities imposed a fine of Rs 7 lakh on Dwarkadas Pritamani for receiving reserve sums totaling Rs 6.50 crore from 45 buyers and providing apartments in his Ravideep Apartments project.
Under the RERA Act, a developer cannot accept an amount exceeding 10% of the value of an apartment. Land or other real estate as an advance payment before signing the sales contract (AFS).
Shivalik Infraspace LLP
In another case, a review of the project by CA showed that developer Shivalik Infraspace LLP raised more than 10% of the cost of an apartment at Shivalik Sharda Parkview Apartments in Shela.
Based on an explanation, a developer’s representative told the authorities that the company had actually tried to enter into agreements for sale with buyers. But was unable to register agreements because buyers did not respond to reminders. The company also provides evidence of the procedure performed. It also told AFS that it had registered seven of its home-buyers. After taking note of the registrations submitted by the developer, RERA noted that the organizer actually tried for registration of AFS and therefore reduced the penalty amount. But as the rules violated, the authority ordered to pay a fine of Rs 10.50 lakh.
AFS a Stumbling Block-
Chitrak Shah, MD of Shivalik Infraspace, told the Mirror: “We will file an appeal before the court. The AFS topic has become a stumbling block in the real estate community as many buyers do not want to have such a document. This problem needs to be addressed and developers should not be penalized in such cases. ”
Gihed meet discusses another case in SC
GIHED – CREDAI held an emergency meeting for developers on Friday to inform them of the upcoming SC hearing. On the pending “conditional plan approval” issue for the draft town planning (TP) locality.
According to the developers, approx. 70 percent of the current real estate projects in Ahmedabad and Gujarat comes in the draft TP areas by authorities like AUDA and AMC.