The draft Real Estate (Regulation and Development) Act rules framed by Goa State government is entirely in the favour of the developer or the builder as it let them escape punishment by paying a fine of 5-10% of the estimated cost of the project. The Goa government is yet to notify the RERA rules.
As per the section 64 of RERA (central act), if the promoter fails to comply with or breaks any of the orders or decisions or directions of the appellate tribunal, the promoter is punishable with imprisonment for three years or with fine which is up to 10 % of the estimated cost of the project.
However, the Goa government has drafted this in the favour of the builder and has given relief to the builder by eliminating the imprisonment provision and reducing the penalty to 5% of the estimated cost which in certain cases could be extended to 10%.
Further, the rules also mention that once the builder has paid the fine as per the order of the court, no further proceedings can be entertained against him for the same offence. In case the builder is jailed then he is eligible to be released once he pays the fine.
In certain situations where the developers sell or advertise the projects without registering the project, the draft rules provide for a provision for compounding the offence by charging a fine of 5% of the estimated cost of the project that can be extended up to 20%.
With respect to this provision as well the central act has a stringent law. Section 59(2) mentions that if any promoter does not comply with the provisions of this Act then the promoter can be jailed for three years or with fine which can be extended to 10 % of the estimated cost of the project or both.
These draft rules also favours the real estate agents as they too can walk free by paying a fine of 5-10% of the estimated cost of the project.
As per section 66 of the RERA act these real estate agents can be jailed up to one year. However, the RERA Act has diluted all these provisions.