In a move highlighting its commitment to transparency and strict adherence to regulations, the Real Estate Regulatory Authority (RERA) in Gurugram has seized security deposits of 20 city-based real estate promoters. This action comes in response to their failure to comply with the conditions of their registration certificates within the specified timeframe.
RERA’s Statement: According to RERA, these promoters were granted conditional project registration certificates but failed to meet the stipulated conditions, resulting in violations of regulatory norms. As a consequence, their security deposits, which were deposited for ensuring timely submission of required documents, have been forfeited.
Reasons for Action: The authority emphasized that the promoters were given conditional registrations based on their requests and were required to adhere to specified conditions within the given timeframe. Failure to fulfill these conditions led to the forfeiture of security deposits, amounting to a collective sum of Rs 7 crore.
Legal Mandate: Under the RERA Act 2016, promoters are obligated to obtain registration certificates from the authority before advertising or executing bookings for real estate projects. Failure to comply with these requirements can result in penalties or forfeiture of security deposits, as demonstrated in this case.
Enforcement and Proceedings: The decision to seize the security deposits followed multiple hearings conducted over the past year to address the promoters’ non-compliance with regulatory conditions. Despite the opportunity for rectification, the promoters failed to meet the necessary requirements within the specified timeframe, prompting RERA to take decisive action.
Conclusion: The seizure of security deposits by RERA Gurugram underscores the importance of regulatory compliance in the real estate sector. By enforcing stringent measures against non-compliant promoters, RERA aims to uphold transparency, accountability, and consumer protection within the industry.
