Unfair practice in RERA

Unfair practice in RERA
  • General
  • Saturday 21st September 2019
  • Author: Shreya Uppal

Highlights

  • The purpose of the law is to ensure accountability and a control mechanism for its end users, thereby maintaining justice in society.

  • The name of this topic defines itself by its nature to protect the homebuyers from the malpractices and whims and fancies of the developers which were earlier prevalent due to the non-introduction of the RERA Act, 2016.

  • Rule 17 of the MAHARERA Rules, 2017 clarifies that a real estate agent must not involve himself in any kind of unfair trade practices.

The purpose of the law is to ensure accountability and a control mechanism for its end users, thereby maintaining justice in society. The name of this topic defines itself by its nature to protect the homebuyers from the malpractices and whims and fancies of the developers which were earlier prevalent due to the non-introduction of the RERA Act, 2016.

General points regarding the unfair practice
1.  As per Section 7 (1) (c) of the RERA Act, 2016, if the concerned RERA authority is satisfied that the promoter is involved in any kind of unfair practice or irregularities, it may on the receipt of a complaint or suo motu (own action) or on the recommendation of the competent authority, can revoke the registration of such project.
2. The
section 10 (c) of the RERA Act, 2016 describes the function of the real estate agent to not to involve himself in any kind of unfair trade practices in order to obtain RERA Registration number and also to renew its registration.
3. As per
Explanation to Section 7(1)(c) of the RERA Act, 2016, unfair trade practice means practice or deceptive method adopted to promote the sale or development of any real estate project including any of the following means stated below:
(a) the practice of making any statement, whether in writing or orally which falsely represents that the services are of a particular standard or represents that the
promoter has approval or affiliation which such promoter does not have or makes a false or misleading representation concerning the service.
(b) 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.
(c) The promoter indulges in any fraudulent practices.

4. Rule 17 of the MAHARERA Rules, 2017 defines the function of the real estate agent and clarifies that a real estate agent must not involve himself in any kind of unfair trade practices.

Notes:
1.
Recently
two cases have been observed (Mystica India and Wisteria Real Vision Pvt. Ltd.)where the MAHARERA Authority by exercising its powers under Section 35 of the RERA Act, 2016, issued suo motu penalty order to the real estate agents for the contravention of Section 10(a) of the RERA Act, 2016 thus coming under the category of unfair trade practice.
a
The promoters and the real estate agents must understand the depth of the Act introduced and act accordingly in order to earn money in a smooth way....!!

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Tags: 
Section 7suo motu penalty orderpromotercomplaint 

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