Section 38 of RERA : Section 38: Powers Of Authority

Explanation using Example

Imagine a scenario where a real estate developer, XYZ Developers, has failed to deliver apartments to buyers within the promised timeline. The buyers, who are the allottees, have been waiting for their homes for several years past the delivery date. Under Section 38(1) of The Real Estate (Regulation and Development) Act, 2016, the Real Estate Regulatory Authority (RERA) can exercise its powers to penalize XYZ Developers for not fulfilling their obligations as per the Act.

In this case, RERA decides to investigate the complaints filed by the allottees. Following the principles of natural justice as per Section 38(2), RERA ensures that XYZ Developers are given an opportunity to present their case before any penalty is imposed. After a thorough examination of the facts, if RERA finds that XYZ Developers have indeed contravened the Act, it may impose a penalty or interest on the developer for the delay.

Furthermore, if it is found that XYZ Developers have engaged in practices that restrict competition or abuse their market position to the detriment of the allottees, as described in Section 38(3), RERA has the authority to refer the matter to the Competition Commission of India for further action.