Suo Moto Source Complaint No.
01 of 2023
BEFORE THE MAHARASHTRA REAL ESTATE REGULATORY AUTHORITY,
MUMBAI
Suo Moto Source Complaint No. 01 of 2023
Secretary, Maharashtra Real Estate Regulatory Authority ...Complainant
Versus
Sanghvi Group ... Respondent
Project Details – “The Frames”, Akola, Nagpur.
Coram: Shri. Mahesh Pathak, Hon’ble Member – I/MahaRERA
Not Applicable
C. A. Ms. Kavita Jain appeared for the respondent.
ORDER
(Friday, 05th January 2024)
(Through Video Conferencing)
1. The captioned Suo-Motu case is not a complaint but a proceeding initiated by
the Secretary/MahaRERA against the respondent-promoter by issuing Show
Cause Notice dated 28-03-2023 for promotion / advertisement of the project
being developed by the respondent - promoter known as “The Frames” (said
project) situated at CTS/ Survey No./Final Plot No./GAT No. - Akola,
Maharashtra without registering the same under the provisions of Section 3 of
the Real Estate (Regulation & Development) Act, 2016 (hereinafter referred to
as RERA).
2. This Suo-Motu Source Complaint was heard on 25-09-2023 as per the Standard
Operating Procedure dated 12-06-2020 issued by MahaRERA for hearing of
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Suo Moto Source Complaint No. 01 of 2023
complaints through Video Conferencing. Both the parties have been issued
prior intimation of this hearing and they were also informed to file their
written submissions if any. Accordingly, the respondent-promoter appeared
and made its submissions. After hearing the arguments of the respondent-
promoter, the following Roznama was recorded in this Suo-Motu Source
Complaint on 25-09-2023 -
“The respondent is present in this suo moto case and contends that
this matter has arisen out of a show cause notice dated 28-3-2023 issued
by the Secretary/MahaRERA for issuance of an advertisement despite non
registration of this project. However, the respondent avers that the said
advertisement was issued after obtaining occupancy certificate on 27-04-
2022 for building no.1 in respect of 18 sale residential tenements in this
composite building. Therefore, the respondent contends that this project
was not required to be registered as the advertisement has been issued after
obtaining of the OC and the fine of Rs.50,000/- imposed under section 61
of the RERA vide the said show cause notice dated 28-03-2023 is erroneous.
Therefore, the respondent is directed to file a reply as per the averments
made in the hearing today within a period of one week i.e. by 2-10-2023
along with all the necessary documents mentioning the relevant sections
of RERA as well as the case law. This matter is reserved for orders suitably
after 2-10-2023 based on the arguments of the respondent in the suo moto
case today as well as the reply filed in the suo moto case.”
3. Pursuant to the aforesaid direction issued by the MahaRERA, the respondent
promoter has submitted its written submissions on record of MahaRERA on
04-10-2023 in hard copy through dispatch. The same is accepted and taken on
record. The MahaRERA has perused the available record.
4. In the present case suo moto proceeding was initiated against the respondent
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Suo Moto Source Complaint No. 01 of 2023
-promoter by virtue of the show cause notice under no.
MahaRERA/Tech2/519/2023 dated 28-03-2023 issued by the
Secretary/MahaRERA for advertising the project in Loksatta Newspaper
dated 25-03-2023 without mentioning the MahaRERA Project Registration No.
P51900014379 situated at Ghatkopar (West) , Mumbai. By the said show cause
notice, the respondent promoter was called upon to give its say within 7 days
as to why action under section 61 of the RERA should not be taken against it.
5. However, the respondent has failed to submit any reply to the said show cause
notice dated 28-03-2023. Hence, the virtual hearing was fixed before the
Secretary/MahaRERA on 26-05-2023, when the respondent remained absent
despite notice. Due to the said default on the part of the respondent promoter,
a penalty of Rs. 50,000/- was levied upon the respondent for violation of
section 11 (2) of the RERA. The said penalty has been paid by the respondent
to the MahaRERA.
6. Thereafter, the respondent has submitted its reply to the said show cause
notice on 1-06-2023, wherein it has stated that it is implementing the said
project under SRA Scheme. In the said scheme it has proposed two buildings
viz no. 1 , consisting of Wing-C , which is composite building having rehab as
well as sale component and building no. 2 consists of Wing A and B which are
solely for sale and comprised of sale component. The said building no. 2 is
registered with the MahaRERA under No. P51900014379. However, although
the said building no. 1 was composite building having both the components
(rehab as well as sale component) having 18 sale flats, for which OC was
received on 27-04-2022, the same was not registered with the MahaRERA. It is
ostensibly because the respondent has intention to sell the said 18 flats only
after OC. Hence, it has not registered the same with the MahaRERA.
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Suo Moto Source Complaint No. 01 of 2023
7. In view of the above facts, the Secretary/MahaRERA has placed this matter
arising out of Suo Moto Advertisement Case No. 43 of 2023 for non-registration
of the said 18 flats with the MahaRERA. The same is converted into Suo Moto
Source Complaint and the same was heard by the MahaRERA on 25-09-2023.
8. During the hearing the respondent has stated that the said advertisement was
issued after obtaining occupancy certificate on 27-04-2022 for building no.1 in
respect of 18 free sale residential flats situated in the said composite building.
Therefore, the respondent has contended that this project was not required to
be registered as the advertisement has been issued after obtaining of the OC
and hence the penalty of Rs.50,000/- imposed under section 61 of the RERA
by the Secretary/MahaRERA is erroneous and hence the same be set-aside.
To support its contentions, the respondent has submitted the copies of the OC
dated 27-04-2022 issued by the competent authority for the said composite
building no. 1 and also the project registration no. P51900014379 obtained for
sale building no. 2. Hence, it has prayed to reimburse the penalty of Rs.
50,000/- by revising the order dated 26-05-2023 passed by the
Secretary/MahaRERA.
9. In the present case, on bare perusal of the submissions made by the respondent
, the MahaRERA feels it necessary to peruse the relevant provisions of section
3 of the RERA, which reads as under:-
“3(1) No promoter shall advertise, market, book, sell or offer for sale, or
invite persons to purchase in any manner any plot, apartment or
building, as the case may be, in any real estate project or part of it, in
any planning area, without registering the real estate project with the
Real Estate Regulatory Authority established under this Act:
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Suo Moto Source Complaint No. 01 of 2023
Provided that projects that are ongoing on the date of commencement of
this Act and for which the completion certificate has not been issued, the
promoter shall make an application to the Authority for registration of the
said project within a period of three months from the date of
commencement of this Act:”
10. The aforesaid explicit provisions of section 3 clearly provides that the promoter
cannot advertise or sale in the project without registering the project with the
MahaRERA. The said section further provides that the project should be
ongoing on the date of commencement of the RERA and for which the
completion certificate has not been obtained.
11. However, in this case, although the said project (building no. 1) was ongoing
on the date of commencement of the RERA, however, there was no sale. In fact,
the respondent has advertised the said project ( Building no.1 of 18 flats) only
after obtaining OC for the same on 27-04-2022. Hence, the MahaRERA prima
facie feels that there is no violation of section 3 of the RERA by the respondent
and the said building need not be registered with the MahaRERA under the
provisions of the RERA.
12. As far as the reimbursement of the penalty of Rs. 50,000/- imposed upon the
respondent promoter by the Secretary/ MahaRERA , the MahaRERA is of the
view that the same is levied for not mentioning the project registration number
in the said advertisement dated 25-03-2023 and , the said decision of the
Secretary/ MahaRERA cannot be reviewed in this matter suo moto source
complaint, which deals with violation of section 3 of the RERA. As the
registration is not mandatory as per the observations made in the aforesaid
paras, the Secretary/MahaRERA may take suitable action regarding
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Suo Moto Source Complaint No. 01 of 2023
reimbursement/waiver of the penalty imposed upon the respondent promoter
as per law.
13. With these observations, the present proceeding stands disposed of. .
(Mahesh Pathak)
Member – 1/MahaRERA
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