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Amid rising complaints, toothless Punjab RERA wants more powers
While the Real Estate (Regulation and Development) Act, 2016 empowers the RERA to keep a check on builders fleecing buyers, it has no resources or powers to execute its orders on the ground
With the GBP Group controversy bringing to fore several drawbacks in the functioning of the Punjab Real Estate Regulatory Authority (RERA), the authority is planning to approach the state government to give it more teeth to protect the buyers.
Though already under the scanner of RERA since 2019, the management of GBP Group managed to flee the country last month, leaving nearly 2,500 investors in the lurch.
While the Real Estate (Regulation and Development) Act, 2016 empowers the RERA to keep a check on builders fleecing buyers, it has no resources or powers to execute its orders on the ground.
All decisions are passed on to the deputy commissioners for action as RERA has no authority on the civic bodies, the local development authorities, banks and other financial institutions involved between the conception and completion of the realty projects.
2019 order still not enforced
In May 2019, upon inspecting the sites, RERA had found that a GBP Group project in New Chandigarh did not have basic statutory approvals, such as CLU, approvals of layout and building plans, and grant of licence to develop a colony. Therefore, a penalty of ₹1.5 crore was imposed and two months deadline was set for remedial measures.
However, over two years later, the builder has paid up only ₹50 lakh of the penalty and has continued to sell more properties of the project, amid no progress on addressing the anomalies.
An officer of the authority, requesting anonymity, said unlike other states in the country, the Punjab RERA did not have any executive or recovery officers, who were needed to ensure that builders complied with RERA orders and paid the penalties.
RERA chairperson Navreet Singh Kang said, “We will take up the issue of more powers with the Punjab government. As far as the GBP Group is concerned, we have already decided to lodge a criminal complaint under Section 59(2) against them.”
Buyers should exercise caution
Kang said investors should always check the builders’ licence before investing in any project and check the completion certificate before accepting possession of a property.
Over the past decade, Mohali, particularly its peripheral areas of Zirakpur, Kharar and New Chandigarh (Mullanpur), has emerged as tricity’s development hub.
As such, it is no wonder that 65% of the complaints received by RERA, since its inception in 2017, are from buyers in Mohali district alone.
“There are 1,078 registered projects in Punjab and 642 of these are in Mohali. Over 95% of the buyers’ complaints are about delay in possession of property, non-payment of interest and penalty, sale of flats to multiple buyers, unnecessary demands by builders and tardy progress of projects,” said Kang.
