Short Answer

If the builder is not RERA-compliant, the sale of a flat is not automatically void, but penalties may be imposed.

Detailed Explanation

Section 59 of the Gujarat RERA Act, 2016 empowers the Real Estate Regulatory Authority to impose penalties on promoters for non-compliance with the provisions of the Act. If a builder fails to register a real estate project with RERA as required by law, penalties can be levied. However, the sale of a flat itself is not automatically void due to non-compliance.

In practice, if a builder is found to be non-compliant with RERA requirements, the authority may issue a notice to the builder, giving them an opportunity to rectify the non-compliance. If the builder fails to comply even after the notice, penalties can be imposed, which may include fines or other punitive measures.

Real-world scenarios could include cases where buyers have purchased flats in projects that are not RERA-compliant. In such situations, while the sale itself is not void, the builder may face penalties for the non-compliance. Buyers may also have the option to seek legal recourse for compensation or other remedies.

In case of a builder being non-compliant with RERA, the step-by-step process typically involves the authority issuing a notice to the builder, providing them with a chance to rectify the non-compliance. If the builder fails to comply within the specified time frame, penalties can be imposed as per the provisions of the Act.

Practical Examples

• A builder in Gujarat fails to register their ongoing project with RERA, as required by law. The Real Estate Regulatory Authority issues a notice to the builder, directing them to register the project within a specified period. If the builder still does not comply, penalties are imposed.

• A buyer purchases a flat in a project that is later found to be non-compliant with RERA regulations. While the sale itself is valid, the builder is penalized for the non-compliance, which may include fines or other sanctions.

References

• Gujarat RERA Act, 2016: https://gujrera.gujarat.gov.in/