In a recent development in the real estate sector, the Assam Real Estate Appellate Tribunal has imposed a penalty on M/s D.S. Realtors for non-compliance with the provisions of the Real Estate (Regulation and Development) Act, 2016. The tribunal has set a pre-deposit condition for the appeal filed by the appellant. This article aims to provide an in-depth understanding of the case, including the legal provisions, the penalty imposed, and the implications of the pre-deposit condition.
The case, REAT/ASSAM/APPEAL NO. 05 of 2023, involves M/s D.S. Realtors as the appellant and the Real Estate Regulatory Authority, Assam as the respondent. The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, is the governing law in this matter.
The Real Estate Regulatory Authority, Assam, in Case No. RERA/ASSAM/Reg/Notice/2022/40, imposed a penalty of Rs. 20,00,000/- (Rupees Twenty Lakhs) on M/s D.S. Realtors. This penalty was imposed in accordance with Section 59 of the Real Estate Act, which empowers the regulatory authority to take necessary actions against non-compliant promoters.
The Proviso to Sub-section (5) of Section 43:
The Assam Real Estate Appellate Tribunal cited the proviso to sub-section (5) of Section 43 of the Real Estate Act in its order. This provision requires a promoter to deposit at least 30% of the penalty amount, or such higher percentage as determined by the Appellate Tribunal, before the appeal can be entertained.
Despite filing an appeal before the Appellate Tribunal, M/s D.S. Realtors failed to comply with the pre-deposit requirement as prescribed by law. The tribunal, considering the penalty amount of Rs. 20,00,000/-, directed the appellant to make an initial deposit of Rs. 6,00,000/- (Rupees Six Lakhs), representing 30% of the penalty.
Legal Precedent and Constitutional Validity:
The Assam Real Estate Appellate Tribunal's order to impose a pre-deposit condition aligns with the legal precedent set by the Hon'ble Supreme Court of India. In the case of Newtech Promoters and Developers Pvt. Ltd. v. State of UP and others, reported in 2021 SCC OnLine SC 1044, the Supreme Court upheld the constitutionality of the proviso to sub-section (5) of Section 43. The Court ruled that the pre-deposit requirement is not onerous and does not violate Articles 14 or 19(1)(g) of the Constitution of India.
Implications for the Appellant:
For M/s D.S. Realtors to proceed with their appeal, it is imperative for them to comply with the Assam Real Estate Appellate Tribunal's order. The appellant must deposit Rs. 6,00,000/- (Rupees Six Lakhs) within two weeks, failing which the appeal may not be entertained.
The penalty imposed on M/s D.S. Realtors by the Real Estate Regulatory Authority, Assam, and the subsequent pre-deposit condition set by the Assam Real Estate Appellate Tribunal highlight the significance of compliance with the Real Estate Act. The requirement for a pre-deposit aims to ensure the fair and efficient handling of appeals while protecting the interests of allottees and maintaining the integrity of the real estate sector.
In an effort to streamline the legal process and prevent undue delays, the Assam Real Estate Appellate Tribunal's order emphasizes the importance of complying with statutory provisions. It is essential for stakeholders in the real estate industry to understand the implications of non-compliance and take appropriate measures to adhere to the provisions of the law.
Note: The information provided in this article about Assam Real Estate Regulatory Authority (ASSAM RERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the APPEAL No. 05 of 2023 before the Assam Real Estate Regulatory Authority
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