Short Answer

Yes, costs or penalties awarded by RERA can be recovered from the builder by the society.

Detailed Explanation

Section 38 of the Gujarat RERA Act, 2016 empowers the Regulatory Authority to impose penalties on the promoter for various violations. These penalties can include monetary fines for delays in project completion, non-compliance with RERA provisions, or any other contraventions. The Act also allows for the recovery of these penalties as arrears of land revenue, which means they can be collected as if they were unpaid taxes.

Furthermore, Rule 20 of the Gujarat RERA Rules, 2017 specifies the procedure for recovery of penalties. The Regulatory Authority can issue a demand notice to the promoter for payment of the penalty amount within a specified time frame. If the promoter fails to comply, the Authority can take further steps for recovery, including attachment of property or initiation of legal proceedings.

In practice, if a builder has been penalized by RERA and fails to pay the imposed costs or penalties, the affected society can approach the Regulatory Authority with the necessary documentation to initiate the recovery process. The Authority will then follow the prescribed procedure to ensure the builder fulfills their financial obligations.

Real-world Scenarios

• Scenario 1: A builder is penalized by RERA for delays in project completion. Despite repeated reminders, the builder fails to pay the imposed penalty. The society, as the aggrieved party, can request RERA to initiate recovery proceedings.

• Scenario 2: RERA imposes a penalty on a promoter for misleading advertisements related to a real estate project. The promoter refuses to pay the penalty amount. The affected society can seek assistance from RERA to recover the costs through legal means.

• Scenario 3: A builder is fined by RERA for non-compliance with project registration requirements. If the builder ignores the penalty, the society can take recourse to the provisions of the Act and Rules to recover the amount.

References

• Section 38 of the Gujarat RERA Act, 2016: Gujarat RERA Act

• Rule 20 of the Gujarat RERA Rules, 2017: Gujarat RERA Rules