Home Regulations Goa RERA Rule Draft Favours The Builders

Goa RERA Rule Draft Favours The Builders

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Goa RERA rule draft favours the builders

The RERA norms draft prepared by the Goa state government fully supports the builders and real estate brokers. They can easily escape the punishment by paying a fine of 5-10% of the estimated cost of the project.

There is a provision in the central act that allows the state to set conditions and compound an offence. The Goa government has clearly used it to prepare a draft that hurts the buyers. The state is yet to notify its RERA rules.

The Section 64 of RERA (Central Act) states that if any promoter fails to comply with or breaks any of the orders, decisions or directions of the appellate tribunal, the promoter is punishable with an imprisonment up to three years or with a fine up to 10% of the estimated cost of the project. However, as per the draft by the state government, the builder can escape jail time by paying just 5% of the estimated cost, which could be extended to 10%.

According to the norm, once the fine has been paid as per the court order no further proceeding shall be entertained against the accused promoter or builder for the same offence. In case the builder has been jailed, the person shall be discharged once the fine is paid.

A fine of 5% of the estimated cost of the project that can be extended up to 20% charged in case the developers advertise or sell the projects without registering it. However, here also the Central act seemed more stringent. According to their section 59 (2), if the promoter doesn’t comply with the orders or continues to violate the provision regarding registration of the project, the promoter can be jailed for up to three years or with a fine which may go up to 10% of the estimated project cost or both.

The same implies for the real estate agents, while the RERA act section 66 suggests that a real estate agent can be jailed up to one year or fined if the orders of the tribunal are not complied with; the state government rules let them walk freely by paying a fine of 5-10% of the estimated cost of the plot, apartment or building of the real estate project for which the sale or purchase has been facilitated.

Also Read: Goa Builders Might Get More Time To Get Their Projects Registered Under RERA

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