Bombay high court directs builders to meet July 31 Rera registration deadline
The court declined to extend the month-end deadline set under the new real estate regulatory law.
Jul 27, 2017
Source : TOI


NAGPUR: The Nagpur bench of the Bombay high court on Wednesday directed a group of builders to comply with a July 31 registration deadline under the Real Estate (Regulation and Development) Act (Rera), 2016.


The court declined to extend the month-end deadline set under the new real estate regulatory law.

The court was hearing a petition by four builders, who questioned the constitutional validity of certain "arbitrary and draconian'' provisions of the new law, which, they said, would apply retrospectively to older projects, already under construction.


\The Centre, however, in a detailed affidavit said the "act is not unconstitutional'' nor is it a retrospective application as ongoing projects are not complete.


"The Real Estate Act does not envisage penalty for violations prior to the commencement of the Act,'' said the Centre in its affidavit. The Act was passed in March 2017.

Small percentage of builders registered under Rera nationwide


The various sections which provide for responsibilities of the promoter and penalties for their breach come into effect only from May 1, said the government.

Construction industry sources said only a small percentage of builders has so far registered their projects under Rera nationwide — in Maharashtra, it is barely 15%. Sources said it is not mandatory to register if the builder does not plan to sell the apartments.


A division bench of Justice Bhushan Dharmadhikari and Justice Rohit Deo allowed petitioners — Swapnil Promoters and Developers, Swapnil Associates, Sukhyog Construction and Guru Construction — to amend their petition within a week and adjourned the matter to August 21 for further hearing.

The court recorded a submission by senior counsel Sunil Manohar who appeared for the developers, that they would comply with the registration deadline. Manohar, however, said the state ought not to take any coercive action against developers.


Additional solicitor general Anil Singh stated that if there were no breaches, for instance, "if the builders didn't issue any advertisements or take flat bookings from customers, there would be no question of taking any action". The petitioners alleged that provisions which restricted sale of real estate, required opening of escrow account and registration of existing projects with RERA, were unconstitutional.







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