The Real Estate Regulatory Authority (RERA), Gurugram, has imposed a hefty penalty of ₹50 lakh on real estate promoter M/s Birla Estates Private Limited for violating Section 3 of the Real Estate (Regulation and Development) Act, 2016. This action highlights the authority’s commitment to enforcing compliance and ensuring transparency in the real estate sector.
Violation of Section 3 of RERA Act
According to Section 3 of the RERA Act, 2016, no promoter is allowed to advertise, market, or sell any real estate project without first obtaining a valid registration certificate from RERA. However, M/s Birla Estates Private Limited published advertisements for its upcoming group housing project, Birla Akira, located at Sector 31 and 32-A, Gurugram, before securing the necessary project registration under Section 4 of the Act.
The project registration application was still under review, and the necessary documents were being scrutinized by the authority when the advertisement was released. This violation led the Gurugram RERA to issue a show cause notice to the promoter, warning of legal consequences.
Penalty Imposed and Conditions for Project Registration
The authority ruled that the registration certificate (RC) for the Birla Akira project would only be issued once the promoter:
- Submits all the remaining required documents.
- Completes the online DPI (Detailed Project Information) submission.
- Deposits the ₹50 lakh penalty for violating Section 3 of the Act.
In its order, RERA also advised M/s Birla Estates Private Limited against engaging in or allowing third-party sales of units in unregistered projects, warning of further legal consequences for any future violations.
Other Real Estate Firms Penalized
The Gurugram RERA Authority has also penalized multiple real estate developers for non-compliance with Section 4(2)(l)(C) of the RERA Act, 2016. The section requires developers to abide by their declarations regarding project timelines, quality, and execution.
The following developers have been fined ₹25 lakh each for failing to comply with their obligations:
- Godrej Developers and Properties LLP
- Signature Global Homes Private Limited
- Shine Buildcon Pvt Ltd
- AMB Infraventures Pvt Ltd
Additionally, RERA ordered the forfeiture of security deposits totaling ₹2.25 crore from the following six promoters due to non-compliance with RERA registration conditions:
- 1000 Trees Housing Pvt Ltd
- Keystone World Pvt Ltd
- JMK Holdings Pvt Ltd
- TARC Ltd
- Mapsko Builders Pvt Ltd
- Aviana Green Estates Pvt Ltd
Gurugram RERA’s Commitment to Homebuyer Protection
The Gurugram RERA Authority remains dedicated to protecting homebuyers’ interests and ensuring that developers comply with legal mandates. By enforcing strict penalties and taking decisive action against non-compliant developers, the authority aims to foster transparency and accountability in the real estate sector.
With ongoing regulatory oversight, homebuyers in Gurugram can expect improved project completion timelines and adherence to promised construction quality. The RERA Authority will continue to monitor real estate projects closely and take strict action against any violations to uphold the rights of consumers.
