Answer By law4u team
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), valuation penalties are fines imposed on builders, developers, or agents for non-compliance with regulations, such as providing inaccurate project valuations, misleading advertisements, or violating registered commitments.
Key Penalties Under RERA:
- False Information:
- If a promoter provides incorrect or misleading information regarding project valuation, such as the cost, stage of completion, or amenities, they can face fines up to 5% of the project’s estimated cost.
- Delay in Project Completion:
- For failure to complete the project as per registered timelines, penalties may include fines up to 10% of the project cost, cancellation of registration, and compensation to affected buyers.
- Non-compliance with Orders:
- Non-compliance with RERA orders or tribunal rulings can lead to penalties, including imprisonment for up to 3 years or fines up to 10% of the project cost, or both.
- Non-registration of Project:
- If a project is not registered under RERA, the promoter may be liable to pay up to 10% of the project’s estimated cost as a penalty.
- Misleading Advertisements:
- Promoters making false promises or claims in advertisements can be fined up to 5% of the project cost and ordered to rectify the issue.
Summary: Valuation penalties under RERA include fines for false information, non-compliance, project delays, and misleading advertisements, aiming to ensure transparency and protect buyer interests.
