Short Answer

Yes, if a project is not registered under RERA when required, the builder is liable for penalties and consequences.

Detailed Explanation

Section 3 of the Gujarat RERA Act mandates that all real estate projects with an area of more than 500 square meters or more than 8 apartments must be registered with RERA before advertising or selling. Failure to register a project as required by law can lead to serious consequences for the builder. Section 59 of the Act specifies penalties for non-compliance, which may include a fine of up to 10% of the estimated cost of the real estate project.

In practice, if a builder fails to register a project under RERA, aggrieved buyers have the right to file complaints with the Real Estate Regulatory Authority. The Authority can take action against the builder, including imposing penalties and directing the builder to register the project immediately. This ensures that buyers are protected and builders are held accountable for their actions.

Real-world Scenarios

• Scenario 1: A builder in Gujarat starts advertising and selling apartments in a new project without registering it under RERA. Several buyers who have purchased units file complaints with RERA for non-compliance. RERA investigates the matter, imposes a penalty on the builder, and directs them to register the project to ensure buyer protection.

• Scenario 2: A developer constructs a commercial complex without registering it under RERA as required. After completion, tenants in the complex discover the non-compliance and collectively file a complaint with RERA. The Authority takes action against the builder, imposing penalties and ensuring registration to safeguard the tenants' rights.

• Scenario 3: A real estate company launches a large-scale residential project without RERA registration. As buyers become aware of the non-compliance, they organize and submit a joint complaint to RERA. The Authority intervenes, penalizes the builder, and ensures project registration to uphold transparency and accountability.

References

• Section 3 and Section 59 of the Gujarat RERA Act and Rules: https://gujrera.gujarat.gov.in/