Builder Delays and RERA Complaints
If the builder transfers a project to another builder, does RERA proceed against the new one?
Written By: GatePal Analyst
Last Updated on
Short Answer
Yes, RERA can proceed against the new builder if the original builder transfers the project.
Detailed Explanation
Rule 19 of the Gujarat RERA Rules states that in case of transfer of a real estate project from one promoter to another, the transferee promoter shall be responsible for all the obligations and liabilities of the transferor promoter under the Act. This means that if the original builder transfers the project to a new builder, the new builder will be held accountable for fulfilling all the obligations and commitments made by the original builder under RERA.
In practice, this provision ensures that homebuyers are protected even if there is a change in the builder during the course of a project. The new builder is required to comply with all the provisions of RERA, including completing the project as per the timelines specified in the registered agreement and addressing any grievances raised by the homebuyers.
For example, if Builder A transfers an ongoing project to Builder B, and Builder B fails to complete the project within the agreed timeline or violates any RERA provisions, homebuyers can file complaints against Builder B with the Gujarat RERA authority. Builder B will then be liable to rectify the issues and complete the project as per the original commitments made by Builder A.
In such scenarios, the Gujarat RERA authority will investigate the complaints against the new builder, issue necessary orders for compliance, and ensure that the rights of the homebuyers are protected throughout the project's completion.
Reference
Gujarat RERA Rules, Rule 19: https://gujrera.gujarat.gov.in/
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