Under the Real Estate (Regulation and Development) Act, 2016 (RERA), the regulatory framework is designed to ensure accountability and transparency in the real estate sector. RERA addresses non-compliance by real estate developers through a combination of penalties, corrective actions, and legal recourse. The key provisions for handling cases of non-compliance are: Registration and Timely Completion: Developers are required to register their projects with the RERA before advertising or selling. If a developer fails to register, they can face penalties. If a developer does not complete or deliver the project on time, they can be penalized and must compensate homebuyers. The completion date is legally binding, and delays can lead to claims for compensation. Penalties for Non-Compliance: Failure to Register a Project: If a developer does not register the project, they can face a penalty of up to 10% of the estimated project cost. Non-Completion of the Project on Time: If the developer fails to complete or deliver the project as per the agreed schedule, they must compensate buyers by paying interest at a rate specified by RERA (typically 2% above the State Bank of India’s highest marginal cost of lending rate). Violation of RERA Provisions: If a developer violates the terms of the registered project (e.g., not adhering to promises made in the project brochure or agreement), penalties can be imposed. These may include fines or imprisonment for up to 3 years. Defects Liability: Developers are liable for structural defects, poor construction quality, or poor workmanship for a period of five years from possession. If a defect is found, the developer must repair it at no cost to the buyer or provide a refund. Adherence to Sale Agreements: Developers must comply with the terms of the sale agreement with the buyer. If there is any breach, such as failing to deliver the promised amenities or violating the specifications, the buyer can approach RERA or the consumer court for redressal. Complaint Redressal Mechanism: RERA Appellate Tribunal: If a developer or homebuyer is aggrieved by a decision of the RERA, they can appeal to the RERA Appellate Tribunal. This body has the power to review, modify, or set aside RERA’s decisions. Dispute Resolution: RERA encourages out-of-court settlement through mediation. However, if mediation fails, the aggrieved party can approach the RERA tribunal for resolution. Suspension of Developer’s Registration: RERA has the power to suspend or cancel the registration of a developer for serious violations. If a developer is found guilty of non-compliance or fraudulent practices, their ability to operate can be revoked. Transparency and Accountability: Developers must upload project details on the RERA portal, including approvals, status updates, and financial information, to ensure transparency. Non-compliance in providing such information can result in penalties or regulatory action. Consumer Protection: If a developer does not fulfill their obligations (e.g., failing to deliver possession or violating the agreement), buyers can approach RERA for compensation, and RERA has the authority to order refunds or compensation to the affected parties. In summary, RERA ensures that developers adhere to their commitments regarding registration, construction, possession, and delivery. Non-compliance is met with strict penalties, including fines, suspension, or cancellation of registration, and the law provides multiple avenues for buyers to seek redressal.

DEAR CLIENT, 1. Non-Compliance and Penalties: RERA mandates that all real estate projects exceeding 500 square meters or involving more than eight apartments must be registered with the respective State Real Estate Regulatory Authority. Developers must disclose key project details, including timelines, financial plans, and layout approvals. Failure to comply with these regulations can result in significant penalties. • Non-Registration Penalty: If a developer fails to register a project under RERA, they may face a fine of up to 10% of the estimated project cost. Continued non-compliance may attract imprisonment for up to three years or an additional fine of up to 10% of the project cost. • Misrepresentation or False Information: If a developer provides false information or violates the RERA guidelines, they are liable to pay a penalty of up to 5% of the project’s estimated cost. • Delayed Possession: If a developer does not deliver possession on time, buyers can seek compensation with interest for the delay. RERA ensures that homebuyers have the option to withdraw from the project and claim a refund with interest or continue with the project while receiving compensation for the delay. • Violation of Authority Orders: If a developer disregards the orders of the Real Estate Regulatory Authority or the Appellate Tribunal, they may face imprisonment for up to three years or a fine of up to 5% of the project cost. 2. Buyer Remedies and Complaint Mechanism: RERA empowers homebuyers to file complaints against developers in case of non-compliance. Buyers can approach the State RERA or the Real Estate Appellate Tribunal if they are aggrieved by delays, substandard construction, or non-fulfillment of commitments. • Filing a Complaint: Any aggrieved party can file a complaint through the online portal of the respective State RERA. The authority is bound to resolve the issue within 60 days unless further extension is required with recorded reasons. • Appellate Tribunal: If either the buyer or the developer is dissatisfied with RERA’s decision, they can appeal to the Real Estate Appellate Tribunal. Further appeals can be made to the High Court within 60 days of the tribunal’s decision. • Compensation and Interest: RERA entitles buyers to seek compensation or interest for delays. The authority determines the amount based on the project’s cost and the extent of the breach. 3. Revocation of Registration: In cases of serious non-compliance, RERA has the power to revoke a project’s registration. Grounds for revocation include persistent default, violation of law, and fraudulent practices. Upon revocation, the authority can take steps to complete the project through a designated authority or a third party. We hope this clarifies your query. please feel free to reach out for further assistance. Thank you.

Dear client, 1. Mandatory Registration: Under RERA, all real estate projects (including residential and commercial) exceeding a certain area must be registered with the Real Estate Regulatory Authority of the respective state. Non-compliance in this registration process is penalized, and projects cannot be marketed or sold without registration. 2. Real Estate Regulatory Authorities: Each state has a dedicated RERA authority responsible for regulating the real estate sector, ensuring compliance with the Act, and dealing with disputes. These authorities have the power to impose penalties, issue orders, and enforce compliance. 1. Penalties for Non-Compliance: RERA defines specific penalties for various types of non-compliance by developers. For instance, if a developer fails to register the project, they can face a fine which may extend to 10% of the estimated cost of the project. In addition, non-compliance with the order of RERA authorities can attract further penalties, including imprisonment for up to three years or fines. 2. Customer Redressal Mechanisms: If a developer fails to fulfill their obligations, such as delays in possession or failure to deliver the project as per the agreed specifications, buyers can approach RERA for redressal. RERA has established a dispute resolution mechanism where homebuyers can file complaints against builders. This provides a faster and more streamlined process compared to traditional litigation. 3. Adjudicatory Mechanisms: RERA has provisions for the appointment of adjudicating officers and the establishment of appellate tribunals to address grievances. If a buyer is dissatisfied with the decision of the RERA authority, they can appeal to the Appellate Tribunal. The Tribunal's decisions are binding, thus ensuring that buyers have a legal recourse. 4. Transparency and Accountability: RERA mandates developers to provide detailed project information, including sanctioned plans, layout, and status updates. Non-disclosure or misleading information can attract penalties. Furthermore, developers are required to deposit a certain percentage of the amount collected from buyers into a separate account to ensure that funds are used only for the specified project. 5. Escrow Accounts: Under RERA, developers must maintain escrow accounts for each project. This ensures that the funds collected from buyers are utilized exclusively for that particular project, mitigating the risk of misappropriation. If developers fail to comply with this requirement, they can face penalties, thereby promoting accountability We hope this clarifies your query. please feel free to reach out for further assistance. Thank you.