Section 7-Revocation of Registration

Section 7-Revocation of Registration
  • General
  • Wednesday 4th September 2019
  • Author: Shreya Uppal

Highlights

  • The formation of the RERA Act, 2016 has given power tool in the hands of the authorities to act as a watchdog for the developers in respect of the projects they are getting registered

  • The RERA Authority must be satisfied that the promoter has made any default in doing anything required by this act or he has violated any of the terms or conditions of the approval given by the authority or the promoter is involved in any kind of unfair practice or irregularities.

  • The Authority shall inform the promoter about such revocation in Form “D”.

The formation of the RERA Act, 2016 has given power tool in the hands of the authorities to act as a watchdog for the developers in respect of the projects they are getting registered. An example of such a statement is Section-7 of the RERA Act, 2016 which describes the Revocation of registration.

Some basic points in relation to the above section:
1. On receipt of complaint or suo motu (on its own motion), the competent authority may revoke the registration granted under section 5 of the RERA Act, 2016.
2. The RERA Authority must be satisfied that the promoter has made any default in doing anything required by this act or he has violated any of the terms or conditions of the approval given by the authority or the promoter is involved in any kind of
unfair practice or irregularities.
3. The registration granted
shall not be revoked unless the promoter has been given a 30 days written notice to state the grounds why the registration should not be canceled by them and produce the sufficient cause to the authority.
4. Instead of revoking the registration, the authority may permit it to remain in force by imposing some terms and conditions as it thinks fit to the interest of the allottees.
5. The Authority shall
inform the promoter about such revocation in Form “D”.

As per Section 7(4) of the RERA Act, 2016, the authority shall take the following steps upon revocation of registration:
1. It shall debar the promoter from accessing its website in relation to that project.
2. It shall specify his name in the list of the defaulters and display his photograph on the website and also inform other RERA Authorities.
3. It shall direct the bank holding the project bank account to freeze the account and take necessary actions.
4. It shall facilitate the remaining development works to be carried out in accordance with the provisions of Section 8 of the RERA Act, 2016 including consequent de-freezing of the account to facilitate remaining
development works.
5. It may also issue necessary directions to protect the interest of
allottees.

Note: As per Explanation to Section 7 of the RERA Act, 2016, "unfair practice means" a practice which, for the purpose of promoting the sale or development of any real estate project adopts any unfair method or unfair or deceptive practice including any of the following practices:
(1) The promoter permits the publication of any advertisement or prospectus whether in any newspaper or otherwise of services that are not intended to be offered.
(2) The promoter indulges in any fraudulent practices.
(3) He has falsely represented that the services are of a particular standard or grade or represented a fictitious approval or affiliation with another promoter.

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