Section 8: Obligation of Authority consequent upon lapse of or on revocation of registration
Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority:
Provided that no direction, decision or order of the Authority under this section shall take effect until the expiry of the period of appeal provided under the provisions of this Act:
Provided further that in case of revocation of registration of a project under this Act, the association of allottees shall have the first right of refusal for carrying out of the remaining development works.
Comments on Section 8 RERA
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, was enacted to protect the interests of homebuyers and promote transparency and accountability in the real estate sector. One of the essential provisions of RERA is Section 8, which deals with the Obligation of Authority consequent upon lapse of or on revocation of registration.
Section 8 of RERA states that if the registration of a real estate project is revoked or has lapsed due to the failure of the promoter to complete the project or any other reason, the real estate regulatory authority (RERA) shall take necessary action to facilitate the refund of the amounts paid by the allottees along with interest.
The objective of this provision is to ensure that homebuyers are not left in the lurch if the promoter fails to complete the project or the registration is revoked. In such a scenario, the RERA authority is required to step in and take necessary action to protect the interests of the homebuyers.
The RERA authority has the power to facilitate the refund of the amounts paid by the allottees, along with interest. The interest rate shall be the State Bank of India highest marginal cost of lending rate plus two percent, which shall be payable from the date on which the amounts were paid by the allottees.
Additionally, the RERA authority can also facilitate the completion of the project through any other competent authority or agency, as per the provisions of the law. The RERA authority can also take possession of the project and complete it by itself or through any other agency.
The RERA authority can also impose a penalty on the promoter for any contravention of the provisions of the Act, including failure to complete the project or any other non-compliance. The penalty can be up to ten percent of the estimated cost of the real estate project as determined by the RERA authority.
Furthermore, if the promoter fails to pay the penalty imposed by the RERA authority, the same can be recovered as arrears of land revenue. The RERA authority can also initiate criminal proceedings against the promoter for any offence committed under the Act.
In conclusion, Section 8 of RERA is a crucial provision that ensures the protection of the interests of homebuyers in case the registration of a real estate project is revoked or has lapsed. The RERA authority is obligated to facilitate the refund of the amounts paid by the allottees along with interest and take necessary action to complete the project or impose penalties on the promoter for any non-compliance. This provision has been instrumental in promoting transparency and accountability in the real estate sector and has boosted the confidence of homebuyers.