Section 7 of RERA : Section 7: Revocation Of Registration

Explanation using Example

Imagine a scenario where you have purchased an apartment in a new housing complex. The developer (promoter) promised a variety of amenities, including a clubhouse, gym, and swimming pool. However, as the construction progresses, you notice that the promised amenities are not being built. Upon investigating, you find out that the developer has not obtained the necessary approvals for these amenities and has been misleading buyers by advertising features that they never intended to offer.

As an aggrieved buyer, you file a complaint with the Real Estate Regulatory Authority (RERA). RERA investigates the matter and finds that the developer has indeed engaged in unfair practices by advertising amenities without proper approvals, which is a violation under Section 7(1)(c) of the Real Estate (Regulation and Development) Act, 2016. Before taking any action, RERA gives the developer a 30-day notice as required by Section 7(2), explaining the grounds for potential revocation of their registration.

After considering the developer's response and finding it unsatisfactory, RERA decides to revoke the developer's registration. According to Section 7(4), RERA then debars the developer from accessing its website in relation to the project, lists them as a defaulter, and informs other Real Estate Regulatory Authorities about the revocation. Furthermore, RERA takes steps to protect the interests of the buyers by freezing the developer's project bank account and facilitating the completion of the remaining development works as per Section 7(4)(b) and (c).

Alternatively, RERA may choose not to revoke the registration but instead impose additional terms and conditions on the developer to ensure the completion of the promised amenities for the benefit of the allottees, as described in Section 7(3).