Friday, November 22, 2019

Gujarat high court quashes RERA’s penalty order

The Gujarat high court has quashed an order of penalty imposed on a real estate firm by the Gujarat Real Estate Regulatory Authority (RERA) for not mentioning its registration details in advertisements of its scheme.
The order has come as a breather for builders, who have been penalized by the RERA for skipping a mention of authority’s web address and details of project registration either in their prospectus or in advertisements. The RERA has punished 462 builders for breach of section 11(2) of the Real Estate (Regulation and Development) Act for not mentioning the details in any of them.
The issue involved Narayan Realty Infrastructure from Surat, which has mentioned details about its project in its prospectus, but not in its advertisements. The RERA slapped a penalty of Rs 1.5 lakh for the breach. Later, an appellate authority reduced the penalty amount to Rs 75,000.
The firm challenged the penalty in the high court through advocate Bhargav Hasurkar, who pointed out that the legislation mentions that the details should be mentioned either in prospector or in advertisements.
After hearing the case, the high court said that the RERA tribunal opined that the breach on part of the firm was not of a serious nature.
“However, in the opinion of this court, there was no breach at all. Penalty was thus unnecessarily imposed,” the HC observed and remanded the issue back to the appellate authority.

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