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False RERA Registration Information – RERA Penalty in 2021

The Real Estate (Regulation and Development) Act, 2016 has been enacted for several reasons.

Two of these reasons are to safeguard the interests of allottees and to promote and protect real estate transactions.

Both real estate agents and promoters can provide false RERA registration. A person may at the time of registration of a real estate agent provide wrong info. Similarly, a promoter at the time of registering a real estate project may err in providing the crucial information for RERA registration.

In this post, we will discuss Section 60 and Section 62 of the RERA Act 2016 where there is strict punishment for a promoter and real estate agent for providing false RERA registration information.

Section 60 applies to the promoter and Section 62 applies to the real estate agent.

Section 60 of the RERA Act 2016- Penalty for Promoter for Violating Section 4

Here is an excerpt of RERA Act Section 60-

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.

Understanding Section 60 – Penalty for False RERA Registration Information provided by the Promoter

Under Section 3, if a promoter wants to engage in the real estate sector, he must apply for registration of the real estate project with RERA.

Do you know that a promoter shall be liable to pay fine if violates Section 3?

As per Section 4, a promotor will make an application to RERA and enclose requisite documents and information. This application and enclosed docs and other info shall be filled on the RERA website.

A promoter must also ensure to comply with the State RERA Rules. Like in UPRERA, there is a provision for attaching a copy of PAN.

But, if any promoter provides false RERA registration information or contravenes the provisions of Section 4, he shall be liable to a penalty. This penalty may extend up to 5% of the estimated cost of the real estate project, as determined by the State RERA Authority.

Moreover, as per Section 63 of the RERA Act 2016, if a promoter fails to comply with the RERA Order, he shall be liable to a penalty which may cumulatively extend up to 5% of the estimated cost of the real estate project.

Section 62 of the RERA Act 2016- Penalty for Agent for Violating Sections 9 and 10

Here is an excerpt of RERA Act Section 63-

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 the 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.

Understanding Section 62 – Penalty for False RERA Registration Information provided by the Agent

As per Section 9 of the RERA Act, if a person wishes to become a real estate agent in India, he must make an application along with prescribed fees and requisite enclosed documents to the concerned State RERA. This application and enclosed docs shall be filled on the RERA website.

A person applying for an agent must also ensure to comply with the State RERA Rules. Like in many states, there is a provision for attaching a copy of PAN.

But, if any person provides false RERA registration information or contravenes the provisions of Section 9, he shall be liable to a penalty of Rs. 10,000 every day during which such default continues. This penalty may cumulate and extend up to 5% of the cost of the plot, apartment or buildings of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

Moreover, as per Section 65 of the RERA Act 2016, if a real estate agent fails to comply with the RERA order, he shall be liable to a penalty which may cumulatively extend up to 5% of the 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.

Frequently Asked Questions

  1. How RERA acknowledges false registration information?

    RERA can acknowledge the violation of Section 4 in two ways- On its own motion or if someone makes a complaint against the promoter.
    Upon its own motion, it will issue a show-cause notice to the promoter or real estate agent. If the reply made by them does not satisfy RERA, it can penalize them under Section 60 and 62 respectively. Moreover, if the issue is serious in the promoter’s case, RERA can also issue a project deregistration notice after hearing and verifying the promoter’s statements.

  2. Does the promoter or a real estate agent get the chance of rectifying the false registration information?

    Yes, upon being brought to notice on its own motion by someone’ complaint, RERA sends show-cause notice to the promoter or real estate agent.
    They can either admit that there has been a fault in providing RERA registration information or defend their claims.

  3. Is it compulsory to impose a fine on the promoter or real estate agent if they provide false RERA registration information?

    Both Section 60 and 62 states that the promoter or real estate agent shall be liable to pay the fine. It means that RERA will definitely impose the fine subject to the extent it can increase.

  4. What happens to my booked apartment/plot/building if the promoter has provided its wrong RERA registration information?

    Upon Section 60 or 62 being violated for providing false RERA registration information, RERA may proceed towards deregistration of real estate project or real estate agent.
    If it does so, it will notify you with a letter/notice/email as the rightful owner of the booked or allotted plot/building/apartment. It will now proceed to act as per Section 8 and 9 of the RERA Act 2016.

  5. Can I make a complaint in RERA against promoter or real estate agent for providing false RERA registration information?

    Yes, if you have evidence against the promoter or real estate agent confirming that he provided false information for RERA registration, you can make a RERA complaint.

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