GUJARAT REAL ESTATE REGULATORY AUTHORITY - BHAGWAN REALTOR

Government of India has enacted the Real Estate (Regulation and Development) Act 2016 and all the sections of the Act shall come into force with effect from May 1, 2017. Under this Act, Government of Gujarat established Gujarat Real Estate . Regulatory Authority (GUJRERA), for regulation and promotion of real estate sector in the State of Gujarat. The key components of Real Estate (Regulation and Development) Act, 2016.

OUR VISION

To make Gujarat the premier destination for real estate investment regionally, nationally and globally, where the interest of the consumers and developers in the real estate sector are secure through effective and fair regulation.

OUR MISSION

"To provide a robust, secure, trustworthy, transparent and sustainable real estate regulatory environment that encourages investment whilst protecting consumer rights through"

• innovative customer focused solutions,
• model service delivery by professional staff and
• excellent communications with all our stakeholders.

OUR BACKGROUND

Government of India has enacted the Real Estate (Regulation and Development) Act 2016 and all the sections of the Act shall come into force with effect from May 1, 2017. Under this Act, Government of Gujarat established Gujarat Real Estate Regulatory Authority (GUJRERA), for regulation and promotion of real estate sector in the State of Gujarat. The key components of Real Estate (Regulation and Development) Act, 2016 are as follows

1. REAL ESTATE REGULATORY AUTHORITY AND APPELLATE TRIBUNAL

Under this Act, appropriate government shall establish Real Estate Regulatory Authority for regulation and promotion of the real estate sector in the State / UTs. The Authority shall strive to facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector while protecting the interest of allottees, promoters and real estate agents. The authority shall also establish an adjudicating mechanism for speedy dispute redressal regarding registered real estate projects. The key responsibilities of the Authority shall be as follows:

• Ensuring Disclosures of Real Estate Projects by Promoters
• Real Estate Projects Registration
• Real Estate Agents Registration
• Complaints Redressal
• Provide recommendations to appropriate Government on in matters relating to the development & promotion of real estate sector;

2. REAL ESTATE PROJECTS REGISTRATION

All commercial and residential real estate projects will have to register except in projects where

• area of land proposed to be developed does not exceed five hundred square meters
• number of apartments proposed to be developed does not exceed eight inclusive of all phases
• promoter has received completion certificate for a real estate project prior to commencement of this Act
• for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project

No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area within Gujarat, without registering the real estate project with the Gujarat Real Estate Regulatory Authority(GUJRERA). Promoter of ongoing real estate projects, in which all buildings as per sanctioned plan have not received Completion Certificate, shall also be required to be registered for such phase of the project which consists of buildings not having occupation or completion certificate.

If any promoter fails to register as per Act, he shall be liable to a penalty which may extend up to ten per cent of the estimated cost of the real estate project. On continued violation, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent of the estimated cost of the real estate project, or with both.

Apart from Registration, the promoters shall be required to provide quarterly updates on the status of the project to the authority.

3. REAL ESTATE AGENTS REGISTRATION

All Real Estate Agents should register under this Act. No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, without obtaining registration under this section.

If any real estate agent fails to register, 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 per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated

4. FILING OF COMPLAINTS

Any aggrieved person may file a complaint with GUJRERA or the adjudicating officer, as the case may be, with respect to any registered real estate project, for any violation or contravention of the provisions of this Act or the rules and regulations made there under. The Authority shall establish an adjudicating mechanism for speedy redressal of such complaints.

Any person aggrieved by any direction or decision or order made by GUJRERA or by an adjudicating officer may file an appeal before the Appellate Tribunal

Any person aggrieved by any decision or order of the Appellate Tribunal, may file an appeal to the High Court

5. FINANCIAL DISCIPLINE

• A promoter shall not accept more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale
• Seventy per cent of the amounts realized for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose
• Withdrawal from such accounts shall be in proportion to the percentage of completion of the project, which shall be certified by an engineer, an architect and a chartered accountant in practice.
• Promoter to compensate buyer for any false or incorrect statement with full refund of property cost with interest
• Project Accounts to be Audited / FY. Copy to be submitted to GUJRERA
• Provision for GUJRERA to freeze project bank account upon non-compliance
• Provision for stronger financial penalties for GUJRERA non-compliances

6. CITIZEN CENTRICITY

• Citizens shall be able to view, on GUJRERA website, all disclosures pertaining to registered projects. This shall enable data driven informed decision making.
• Promoter cannot make any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities etc. without the previous consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in such building.
• If the promoter fails to complete or is unable to give possession of an apartment, plot or building, in accordance with the terms of the agreement for sale, he shall be liable to pay interest for every month of delay. Further, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him with interest
• Promoter to enable formation of Legal Entity like Cooperative Society, Company, Association, Federation etc. within three months from the date on which sixty per cent of the total number of Purchasers in such a building or a wing, have booked their apartment.
• Promoter shall execute a registered conveyance deed in favour of the allottee within three months from date of issue of occupancy certificate or sixty per cent of the total number of Purchasers in such a building or a wing, have paid the full consideration to the promoter, whichever is earlier.
• Real Estate (Regulation and Development) Act 2016 is a step towards reforming the real estate sector in India, encouraging greater transparency, citizen centricity, accountability and financial discipline.

TRANSPARENCY IN THE MARKET

RERA will protect buyers from non-professional developers by promoting ensuring the land title is clear, the encumbrances are sustainable, the documents for sale are sound and legally enforceable and in accordance with the model documents. The physical progress and the financial discipline is monitored by independent engineers and financial experts as well as by ensuring the development and operation of the owners' associations.

THE ACT SHALL DRIVE GREAT TRANSPARENCY IN THE REAL ESTATE SECTOR AS FOLLOWS:

• sanctioned plans, layout plans, along with specifications, approved by the competent authority
• Proposed Plan, Proposed Layout Plan of the whole project and Floor Space Index proposed to be consumed in the whole project, as proposed by the promoter
• Proposed Number of building(s) or wing(s) to be constructed and sanctioned number of the building(s) or wing(s).
• the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.
• quarterly update of the list of number and types of apartments or plots, as the case may be, booked
• quarterly update of the list of number of covered parking, garages booked;
• quarterly update of the list of approvals taken and the approvals which are pending subsequent to commencement certificate;
• quarterly update of the status of the project; and
• such other information and documents as may be specified by the regulations made by GUJRERA.

The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of GUJRERA, wherein all details of the registered project have been entered and include the registration number obtained from the Authority

NON-COMPLIANCE & PENALTIES

A. Punishment For Non-Registration Under Section 3:

• If any promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend upto ten per cent of the estimated cost of the real estate project as determined by the Authority.
• 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 upto three years or with fine which may extend upto a further ten per cent. of the estimated cost of the real estate project, or with both.

B. Penalty For Contravention Of Section 4:

• If any promoter provides false information or contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project, as determined by the Authority.

C. Penalty For Contravention Of Other Provisions Of This Act.

• If any promoter contravenes any other provisions of this Act, other than that provided under section 3 or section 4, or the rules or regulations made thereunder, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project as determined by the Authority.

D. Penalty For Non-registration And Contravention Under Sections 9 And 10.

• If any real estate agent 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 per cent. of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

E. Penalty For Failure To Comply With Orders Of Authority By Promoter.

• If any promoter, who 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 per cent., of the estimated cost of the real estate project as determined by the Authority.

F. Penalty For Failure To Comply With Orders Of Appellate Tribunal By Promoter.

• If any promoter, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to three years or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of the real estate project, or with both.

G. Penalty For Failure To Comply With Orders Of Authority By Real Estate Agent.

• If any real estate agent, who 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 per cent., of the estimated 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 and as determined by the Authority.

H. Penalty For Failure To Comply With Orders Of Appellate Tribunal By Real Estate Agent.

• If any real estate agent, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated 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, or with both.

I. Penalty For Failure To Comply With Orders Of Authority By Allottee.

• If any allottee, who 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 per cent. of the plot, apartment or building cost, as the case may be, as determined by the Authority.

J. Penalty For Failure To Comply With Orders Of Appellate Tribunal By Allotted.

• If any allottee, who fails to comply with, or contravenes any of the orders or directions of the Appellate Tribunal, as the case may be, he shall be punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the plot, apartment or building cost, as the case may be, or with both.

K. Offences By Companies.

• Where an Offence under this Act has been committed by a company, every person who, at the time, the offence was committed was in charge of, or was responsible to the company for the conduct of, the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section, shall render any such person liable to any punishment under this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
• Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation. - For the purpose of this section -

• ''company'' means anybody corporate and includes a firm, or other association of individuals; and
• ''director'' in relation to a firm, means a partner in the firm

L. Compounding Of Offences.

• Notwithstanding anything contained in the Code of Criminal Procedure, 1973, if any person is punished with imprisonment under this Act, the punishment may, either before or after the institution of the prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed: Provided that the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded.

ORGANIZATIONAL STRUCTURE