Wednesday, 6 July 2016

Criminology in Real Estate Regulation & Maharashtra Housing Regulation Act





The Theory of Punishments in the Maharashtra Housing Development & Regulation Act 2012[MHRDA], & Real Estate Regulation Bill [RERA]

1. There are certain provisions in RERA dealing with punishments which are quoted as under

non-registration
under section 3 51. (1) If any promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend up to ten per cent. of the estimated cost of the real estate project as determined by the Authority.
(2) If any promoter does not comply with the orders, decisions or directions
issued under sub-section (1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend to a further ten per cent. of the estimated cost of the real estate project, or with both.


of section 4. 52. If any promoter knowingly provides false information or contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project, as determined by the Authority.
contravention
of other
provisions of
this Act. 53. If any promoter contravenes any other provisions of this Act, other than that provided under section 3 or section 4, or the rules or the regulations made there under, he shall be liable to a penalty which may extend up to five per cent. of the estimated cost of the real estate project as determined by the Authority.
Non-registration
and
contravention
under sections

9 and 10. 54. If any real estate agent willfully fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent. Of the cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority
willful failure
to comply with
orders of
Authority by

promoter. 55. If any promoter, who willfully fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent, of the estimated cost of the real estate project as determined by the Authority.
willful failure
to comply
with orders of
Appellate
Tribunal by

promoter. 56. If any promoter, who willfully fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to ten per cent. of the estimated cost of the real estate project as determined by the Appellate Tribunal.
Penalty for
willful failure
to comply with
orders of
Authority by

allottee. 57. If any ALLOTTEE, who wilfully fails to comply with, or contravenes any of the orders, decisions or directions of the Authority he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to five per cent. of the plot, apartment or building cost, as the case may be, as determined by the Authority
wilful failure
to comply
with orders of
Appellate
Tribunal by

allottee. 58. If any Allottee, who wilfully fails to comply with, or contravenes any of the orders or directions of the Appellate Tribunal, as the case may be, he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to ten per cent. of the plot, apartment or building cost, as the case may be, as determined by the Appellate Tribunal.
of offences 60. Notwithstanding anything contained in the Code of Criminal Procedure, 1973, if any PROMOTER is punished with imprisonment under section 51 of this Act may, the punishment may either before or after the institution of the prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed:

Provided that the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded.

2. The MHRDA also contains provisions of punishment as under.

44. Whoever fails to comply with or contravenes the provisions of section 4, shall, upon the order by the Housing Regulatory Authority in that regard, be liable to pay the penalty which may extend to rupees one thousand per day of default.

45. Whoever, without reasonable cause, fails to comply with, or contravenes, the provisions of sections 6, 16 or 17 shall, upon the order by the Housing Regulatory Authority in that regard, be liable to pay the penalty of rupees ten thousand for each day during which such noncompliance continues, or rupees fifty lakhs, whichever is lower.

46. Any allottee, flat or unit purchaser or organization, who fails to comply with, or contravenes, the provisions of the agreement for sale executed by him with the promoter for purchase of flat, including nonpayment of any amounts or charges in respect thereof, shall, upon the order by the Housing Regulatory Authority in that regard, be liable to pay the penalty which may extend to rupees ten thousand or one per cent. of the sale price of the property specified in such agreement, whichever is higher.

47. Any person, who willfully fails to comply with the orders or directions of the Housing Regulatory Authority or the Housing Appellate Tribunal, as the case may be, shall, upon the order by the Housing Regulatory Authority, or the Housing Appellate Tribunal, as the case may be, in that regard, be liable to the imprisonment for a term which may extend to three years or penalty which may extend to rupees ten lakhs or with both.

48. Any person, other than the promoter, who, without reasonable cause, fails to comply with, or contravenes, any other provisions of this Act or of any rules made there under, or does not pay the penalty imposed on him by the Housing Regulatory Authority shall, if no other penalty is expressly provided therefor, upon the order by the Housing Regulatory Authority in that regard, be liable to pay the penalty which may extend to rupees fifty thousand.

49. (1) Any promoter who, without reasonable excuse fails to comply with, or contravenes the provisions of section 9, section 12, section 14, section 18 or section 19, shall, upon the order by the Housing Regulatory Authority in that regard, be liable to pay the penalty which may extend to rupees one crore. 

(2) Any promoter who, without reasonable excuse, fails to comply with or, contravenes, any other provisions of this Act or of any rule made there under shall, if no other penalty is expressly provided for such contravention, upon the order by the Housing Regulatory Authority in that regard, be liable to pay the penalty which may extend to rupees ten lakhs.

3. Thus seen there are very benevolent provisions made by the state/s on punishment, which leads to bring to assistance & necessity to understand how criminology deals with such situations.

4. Before that it would not be out of place to say that, arrogance is way-high in our country, supplemented by ego, in each individual. And when it comes to dominating position and dealing with uninformed people of their rights, there is tendency to abuse causing wrongful gains, and this is rampant. 

5. Fines, merely afford opportunity to recover from the depletion, and to prepare for extortion of money lost. They are, apart of the extortionist, no punishment to one who has become insensible to statutory compliance and insensitive that they are invading other persons rights.

6. Fines as such are not penal but are in the nature to serve still further to reinforce the warning and nothing more. Thus seen a warning in the form of fine is not at all the punishment. Fine is maximum a temporary forfeiture of product not resource to it.

7. Fines should not be leveled against those motivated by thievery, cheating, forgers, extortionists, and they have to treated as societal felons.

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