RERA Turned Down Proposal Of Developers To Extend Project Completion Deadline
The Jaipur regulatory authority constituted under the Real Estate Regulation and Development Act (RERA) 2016, has turned down the proposal of developers to extend project completion deadline. The developers who have registered their projects with RERA as per mandatory provision had requested to extend project completion deadline as bajri is not available since there is a ban on its mining by the Supreme Court.
The authority, however, refused as there is no provision in the Act to extend project completion deadline. Simultaneously, the UDH department has directed the chief town planner and the law department to make amendments in the state township policy, so that relief can be provided to developers in such circumstances in future.
Sources at UDH said, once the amendment in state policy is done, a request will be forwarded to the Centre to consider special cases. Across the state, 704 ongoing housing projects are registered with RERA. The non-availability of ‘bajri’ for construction is posing a serious threat to developers.
As per RERA, possession date is inviolable and it is a punishable offence for a developer if delivery of a flat is not provided on committed date. A senior official said, in case of not adhering to the rules, the builder stands not only to lose the registration of the project but may also be punished by imprisonment for a term which may extend up to three years or with fine which may extend up to a further five percent of the estimated cost of the real estate project, or both.
Supreme Court ban on sand mining is threatening not only to bring the already embattled real estate sector under further financial stress but also in delaying thousands of projects, exposing the developers to the stringent penalties of RERA. With no solution in sight till the next hearing, when the court is expected to decide on whether to lift the ban or not, the real estate industry representatives in the state have met chief secretary and UDH additional chief secretary and top RERA officials.
The representatives have urged the authorities to consider extending the time for projects lost due to the sand shortage. Chairman of CREDAI, Rajasthan, said, “We have requested the state government to extend the deadline for the projects for developers for the same duration of time as the sand ban.”
Source Link- https://timesofindia.indiatimes.com/