In Bihar, 51 developers received show cause notice from the State RERA and these notices are issued by the authority against the developers for advertising, promoting and selling their current projects prior to registering themselves with the RERA authority.
For violating the rules, the authority issued these notices under Section 3 of the Real Estate (Regulation & Development) Act 2016. The RERA also took a decision to penalize the developer with additional Rs. 10 lakh apart from the project registration fee.
The RERA authority’s action against the developers is the result of complaints they received from unknown people and the authority also collected information about these ongoing projects from its sources. These notices also include unregistered ongoing projects in Patna, Muzaffarpur, Saran, Ara, and Bodh Gaya. Out these three are in Muzaffarpur and one each in the remaining cities excluding Patna, the capital city of Bihar.
Rajiva Bhushan Sinha, Bihar RERA member informed that the developers have two-week time to file a reply on the show caused notices. He also said that stringent actions will be taken if the developers fail to submit their reply. The action will be taken against the developers under Section 59 of the RERA Act.
Sinha also said that the in order to identify these developers the officials conducted a survey of these Projects between 28th January and 1st February. There are complaints against the builders for advertising projects all multiple social media platforms without registering the same with the RERA authority.
The authority also directed builders to register their Projects with maximum covering area of 1000 sq. mtr. With late fee of Rs. 5 lakhs or five times amount of the registration fee under Bihar RERA.
The developers have to pay a late registration fee of Rs. 7 lakhs for mixed and commercial projects.
The authority has extended the deadline for project registration till February end and the late fee is calculated by considering the registration fee and late registration both.
The authority has received 881 applications to register ongoing projects and the authority has processed the registration request of 388 projects already and the remaining applications are under process.
Afzal Amanullah, Bihar RERA Chairman said that the developer has to create a separate account to deposit 70% of the money received from the homebuyers soon after project registration.