PANJIM: The High Court of Bombay had ruled out any further extensions for registration of projects under Real Estate (Regulatory and Development) Act (RERA).
Social Activists Kashinath Shetye, Dr Ketan Govekar and others had filed a contempt petition before the High Court in the matter stating that, as per the court’s March 6 order, if the period for registration of ongoing projects has to be extended, “the State shall apply to the court and satisfy the court that the extension is necessary, by making an appropriate application”.
Disposing off the PILWP No. 18 of 2017, Division Bench of Justice Prithviraj K. Chavan and J. N.M. Jamdar also increased the penalty for late registration to 10 per cent of entire project.
“We had indicated that provisions of Section 59(1) of the Act, 2016 do not contemplate a penalty at flat rate and the penalty is to be levied up to 10% of the cost of the Real Estate Project as determined by the Authority,” the court said.
The Bench also took note of Advocate General Dattaprasad Lawande’s submission of the position as envisaged in Section 59(1) of the Act, 2016 which is referred to in order dated 4 September 2018, is binding and will have to be followed.
“AG states that letters of extension which have been issued will not be implemented and registration if any now would be by following provisions of Section 59(1) of the Act, 2016,” the order reads.
Further it reads, “the learned Advocate General states that since the State will adopt methodology provided under Section 59(1) of the Act, 2016, there is no question of formal extension, as Section 59(1) of the Act, 2016 lays down sufficient parameters to deal with such a situation”.
About some of the projects which are ongoing projects are being registered as new projects, the court said, that the State Authority will scrutinize each case to ascertain whether it is ongoing project or new project and deal with the case accordingly.
“In view of this position, which State will have to follow henceforth, the application filed by the State and Contempt Petitions filed by the Petitioners stand disposed of,” the order reads.
