Bihar RERA slaps Rs 10 lakh fine on Eastern Estate Construction and Developers

Bihar RERA slaps Rs 10 lakh fine on Eastern Estate Construction and Developers
26/11/2018 , by , in News/Views

The Real Estate Regulatory Authority (RERA)-Bihar has imposed a penalty of Rs 10 lakh on Eastern Estate Construction and Developers Pvt Ltd for advertising its projects on its official website without registering them with the authority.

The firm has been charged with violating the provisions of Section 3 of the Real Estate (Regulation and Development) Act 2016.

After hearing the arguments and scrutinising the documents and financial annual audit report of the company, the two-member RERA-Bihar bench comprising Rajiva Bhushan Sinha and Subodh Kumar Sinha concluded that the company has been booking and receiving the payments against the duplex, simplex or economy-type bungalows and apartments in their ongoing project Techno City-Bihta in violation of the Section 3 of the RERA Act.

The action was initiated under Section 59 (1) of the RERA Act, which states that if any promoter contravenes the provisions of Section 3, s/he shall be liable to a penalty which may extend up to 10% of the estimated cost of the real estate project.

The authority had earlier issued notices to the managing director of the company, Sanjeev Kumar, in May this year for non-registration of their two projects – Techno City and Sone Green Valley-Bihta.

In reply, Sanjeev had stated that the first project, Techno City, had commenced prior to the inception of RERA and the construction work was stopped after the RERA came into force on May 1 last year.

Sanjeev had also justified that his second project, Sone Green Valley, was abandoned in 2012, but he forgot to remove the advertisement of the projects from the company’s official website.

A RERA-Bihar official on Friday said the company removed the advertisement from its official website in August and filed online application for the Techno City project on October 1 along with the required documents.

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