Short Answer

The penalty for a builder violating Gujarat RERA rules, such as not maintaining project accounts, can include fines and imprisonment.

Detailed Explanation

Rule 18 of the Gujarat RERA Rules, 2017 states that if a promoter fails to comply with any of the provisions of the Act or the rules, he shall be liable to a penalty which may extend up to 10% of the estimated cost of the real estate project. This penalty can be imposed by the Regulatory Authority after giving the promoter an opportunity to be heard. In practice, this means that if a builder fails to maintain the accounts of the project as required by the rules, the Regulatory Authority can levy a penalty of up to 10% of the project cost.

Furthermore, Section 59 of the Gujarat RERA Act, 2016 provides for imprisonment of up to three years or a fine which may extend up to a further 10% of the estimated cost of the real estate project, or both, in case of continued non-compliance by the builder. This acts as a deterrent for builders to ensure compliance with the RERA rules.

For example, if a builder in Gujarat fails to maintain proper accounts of the project, the Regulatory Authority can impose a penalty of up to 10% of the project cost. In a real-world scenario, if a builder repeatedly violates this rule and fails to rectify the non-compliance, he may face imprisonment along with fines as per Section 59 of the Act.

In another scenario, if a builder intentionally avoids maintaining project accounts to hide financial irregularities, the Regulatory Authority can take strict action, including imposing penalties and initiating legal proceedings. This ensures transparency and accountability in real estate projects under RERA.

Overall, the penalty for a builder violating Gujarat RERA rules, such as not maintaining project accounts, can involve significant financial consequences and even imprisonment to ensure compliance and protect the interests of homebuyers.

References

• Rule 18 of the Gujarat RERA Rules, 2017: Gujarat RERA Rules

• Section 59 of the Gujarat RERA Act, 2016: Gujarat RERA Act