The Chhattisgarh Real Estate Regulatory Authority (Chhattisgarh RERA) has imposed a penalty of ₹20 lakh on Bhilai-based Balaji Builders for selling plots in real estate projects without obtaining mandatory registration under the Real Estate (Regulation and Development) Act, 2016.
The action was taken under Section 59 of the RERA Act after the Authority found that the promoter had violated Section 3, which prohibits promoters from advertising, marketing, booking, selling or offering for sale plots or apartments in projects requiring registration without first registering them with the concerned RERA.
The Authority has also directed the developer to complete the prescribed registration process for the projects.
Balaji Builders Sold Plots in Unregistered Projects
The proceedings concern Balaji Builders, a proprietorship firm owned by Jugal Kishore Tiwari, residing at Shiv Arpan Building, Dakshin Gangotri, Supela, Bhilai, Durg district, Chhattisgarh.
The projects in question are located at:
- Priyanka Nagar: Land bearing Khasra No. 617/17.
- Indira Nagar (Aadarsh Nagar): Land identified in the proceedings as being located in this area.
According to the investigation, the promoter subdivided the project land into plots, sold them to buyers and collected payments without obtaining the mandatory registration from Chhattisgarh RERA.
The Authority found that the projects had not been registered despite the promoter undertaking activities that attracted the registration requirements under the RERA Act.
Violation of Section 3 of the RERA Act
Section 3 of the Real Estate (Regulation and Development) Act, 2016 makes prior registration compulsory for real estate projects covered by the Act.
A promoter cannot advertise, market, book, sell or offer for sale any plot, apartment or building in a real estate project without registering it with the Real Estate Regulatory Authority, subject to the statutory exemptions.
The registration requirement applies to eligible plotted development projects as well as residential and commercial projects. A developer cannot avoid regulatory obligations merely by subdividing land into individual plots and selling them to buyers.
The provision is intended to ensure that project details, approvals and other prescribed information are disclosed to the regulatory authority and prospective purchasers before sales commence.
₹20 Lakh Penalty Imposed Under Section 59
After finding a violation of Section 3, Chhattisgarh RERA imposed a ₹20 lakh penalty on Balaji Builders under Section 59 of the RERA Act.
Section 59 provides for penalties where a promoter contravenes Section 3. Under the provision, the penalty may extend to 10% of the estimated cost of the real estate project.
If the promoter continues to violate Section 3, the Act also provides for further consequences, including imprisonment of up to three years, or a fine that may extend to a further 10% of the estimated cost of the project, or both, as provided under Section 59(2).
The Authority has directed the promoter to complete the official registration process for the projects in accordance with the applicable requirements.
Chhattisgarh RERA Warns Developers Against Unregistered Sales
Chhattisgarh RERA reiterated that promoters of projects covered by the Act must obtain registration before undertaking any advertising, marketing, booking or sale activity.
The Authority emphasised that prior registration is a statutory requirement, not an optional formality. Developers who sell plots or residential units in eligible projects without registration expose themselves to penalties and other legal consequences under the Act.
The action is aimed at protecting buyers by ensuring that developers comply with registration requirements and that project-related information is available through the regulatory framework.
Implications for Plot Buyers and Real Estate Developers
The action against Balaji Builders highlights that plotted development projects are also covered by RERA when they fall within the scope of Section 3.
For prospective plot buyers, checking the RERA registration status of a project before making payments is an important due-diligence step.
Developers must ensure that:
- The project is registered with the concerned RERA before advertising or selling plots, wherever registration is mandatory.
- Required land and project details are disclosed during the registration process.
- Applicable approvals and statutory requirements are complied with.
- Sale and marketing activities are undertaken only in accordance with the RERA Act.
The Chhattisgarh RERA action sends a clear message that subdividing land into plots and selling them without mandatory registration can attract substantial penalties.
