The Real
Estate (Regulation and Development) Bill, 2013, introduced in the Rajya Sabha
on14 August 2013 provides for a speedy and
specialized adjudication mechanism to settle disputes between the promoter,
buyer and real estate agents, thereby de-clogging the civil courts and consumer
forums, from disputes in the real estate sector.
The Bill provides for adjudication of
disputes by an adjudicating officer, to be appointed by the Authority not below
the rank of Joint Secretary to the State Government, to adjudge the
compensation to be paid under sections 12 (Obligations of promoter regarding
veracity of advertisement or prospectus), 14 (Adherence to approved plans and
project specifications by promoter) and 16 (Return of amount and compensation)
of the Bill, a PIB report said.
Also the Bill provides that in case any
person whose complaint in respect of matters covered under sections 12, 14 and
section 16 is pending before the Consumer Disputes Redressal Forum or the
Consumer Disputes Redressal Commission or the National Consumer Redressal
Commission, established under section 9 of the Consumer Protection Act, 1986,
on or before the commencement of this Act, he may, with the permission of such
Forum or Commission, withdraw the complaint pending before it and file an
application before the adjudicating officer under this Bill.
The adjudicating officer while adjudging the
quantum of compensation or interest is required to have due regard to (a) the
amount of disproportionate gain or unfair advantage, wherever quantifiable,
made as a result of the default; (b) the amount of loss caused as a result of
the default; (c) the repetitive nature of the default.
For disputes under any other provision of the
Bill, the matter is to be referred to the Regulatory Authority for
determination, which has powers to impose penalty or interest for
contraventions.
The Bill specifies the penalties to be paid,
for contravention of the provisions of the Act and the penalties to be paid for
non-compliance of the directions of Regulatory Authority or the Appellate
Tribunal, by the promoter or the real estate agent or the allottee as the case
may be.
Contravention by the Promoter:
Punishment
for non-registration under section 3:
Sec 51. (1) If any promoter contravenes the
provisions of section 3, he shall be liable to a penalty, which may extend up
to ten percent of the estimated cost of the real estate project, as determined by the Authority.
(2) 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 up to three years or with fine which may extend to
a further ten percent of the estimated cost of the real estate project, or with
both.
Penalty
for contravention of section 4:
Sec 52. If any promoter knowingly provides false
information or contravenes the provisions of section 4, he shall be liable to a
penalty, which may extend up to five percent of the estimated cost of the real
estate project, as determined by the Authority.
Penalty
for contravention of other provisions of this Act:
Sec 53. If any promoter contravenes any other
provisions of this Act, other than that provided under section 3 or section 4,
or the rules or the regulations made there under, he shall be liable to a
penalty which may extend up to five percent of the estimated cost of the real
estate project as determined by the Authority.
Penalty for willful failure to comply with
orders of Authority by promoter:
Sec 55. If any promoter, who willfully 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 percent of the estimated
cost of the real estate project as determined by the Authority.
Penalty
for willful failure to comply with orders of Appellate Tribunal by promoter:
Sec 56. If any promoter, who willfully fails to
comply with, or contravenes any of the orders, decisions or directions of the
Appellate Tribunal, he shall be liable to a penalty for every day during which
such default continues, which may cumulatively extend up to ten percent of the
estimated cost of the real estate project as determined by the Appellate
Tribunal.
Contravention by the
Real Estate Agent:
Penalty
for non-registration and contravention under sections 9 and 10:
Sec 54. If any real estate agent willfully 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 percent of the 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 as
determined by the Authority.
Contravention by the Allottee:
Penalty for willful failure to comply with
orders of Authority by allottee:
Sec 57. If any allottee, who willfully 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 percent of the
plot, apartment or building cost, as the case may be, as determined by the
Authority.
Penalty
for willful failure to comply with orders of Appellate Tribunal by allottee:
Sec 58. If any allottee, who willfully fails to comply
with, or contravenes any of the orders or directions of the Appellate Tribunal,
as the case may be, he shall be liable to a penalty for the period during which
such default continues, which may cumulatively extend up to ten percent of the
plot, apartment or building cost, as the case may be, as determined by the
Appellate Tribunal.
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