Ahmedabad Others

RERA rules displaying redevelopment hoarding before registration not a violation of norms

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Nikunj Soni

Jun 02, 2024 06:00 AM | UPDATED: Jun 02, 2024 12:02 PM | 10 min read

The Gujarat Real Estate Regulatory Authority (GujRERA) has declared that displaying a board with the words “coming soon” and the developer company’s name in a redevelopment project before its registration under the RERA Act is not a violation of the norms.

The RERA authority noted that the builder company did not include contact details or invite bookings on the board, thereby not breaching Section 3 of the RERA Act.

The case involves the redevelopment of the Kalpataru Cooperative Housing Society in Ranip, a 35-year-old apartment complex.

Last year, the society’s committee signed a memorandum of understanding with the Fortune Group for redevelopment.

The complex has 120 flats and eight shops.

Under the redevelopment plan, the builder will construct 180 apartments, providing new apartments to existing members and selling the remaining units to new buyers.

However, 10 members opposed the redevelopment and did not participate in the process.

They challenged the project in the Gujarat High Court, and the builder company responded to their objections.

After the MoU process, the company erected a board outside the society, displaying its name and “Coming Soon” only.

The dissenting members filed a petition with GujRERA, objecting to the signboard, arguing that the company had not yet registered with GujRERA and, therefore, under Section 3 of the RERA Act, the Fortune Group should be fined Rs 10 lakh for violating guidelines and norms.

The builder contended that the board was erected with the society members’ consent during a religious function and did not include contact numbers, addresses or project details to invite bookings before registration.

They submitted photos and documents to support their claim.

After reviewing the arguments and documents from both sides, the RERA authority ruled that the board was not a violation and dismissed the complaint lodged by the dissenting members.

Legal experts suggest that clear guidelines need to be issued regarding such disputes.

“Some developers put up boards and include details of the flats, like two or three BHK and contact details, which violate the norms. The RERA has previously issued two circulars on this issue; however, a new circular is needed to clear ambiguities, save judicial time, and prevent misinformation,” said Mahadev Birla, a RERA practitioner and co-author of a book on RERA.

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