Punjab RERA Penalty Hearings For Kharar And Zirakpur Projects: What Sections Sixty And Sixty One Cover खरड़ और ज़ीरकपुर के प्रोजेक्टों पर पंजाब रेरा की पेनल्टी सुनवाई: धारा साठ और इकसठ क्या कवर करती हैं ਪੰਜਾਬ RERA ਜੁਰਮਾਨਾ ਸੁਣਵਾਈਆਂ ਖਰੜ ਅਤੇ ਜ਼ੀਰਕਪੁਰ ਪ੍ਰੋਜੈਕਟਾਂ ਲਈ: ਧਾਰਾਵਾਂ ਸੱਠ ਅਤੇ ਇਕਾਹਠ ਕੀ ਕਵਰ ਕਰਦੀਆਂ ਹਨ

Punjab's real estate regulator heard two long lists of penalty cases involving promoters on Thursday the twenty second of October, and orders are awaited. The cause lists, published on the Punjab RERA website, name several projects in the Kharar and Zirakpur belt that Mohali buyers know well. Among them are the Sunny Enclave projects and Aero Homes at Gazipur. A buyer who sees a familiar project on such a list will want to know what the hearing is about and whether it changes anything for a flat or plot already booked.

The short answer is that these are proceedings between the regulator and the promoter. They are about the promoter's duties under the Act. A buyer is not a party. A listing on a cause list is not a finding against any promoter, and on its own it does not decide anything.

What the two lists show

The first list was fixed before the authority's chairman. It names promoters called to appear in cases under section sixty one of the Real Estate Regulation and Development Act. Bajwa Developers appears on that cause list for eight separate projects. Shivalik group companies and Dara Estates also appear on the cause list, as does NH Matcon for the Aero Homes project at Gazipur.

The second list was fixed before a member of the authority. It is headed as a list of cases under sections fifty nine, sixty, sixty one and sixty three, and every entry on it is marked as a notice under section sixty. Each entry carries one or more financial years. Several entries are Mohali district projects, while others come from Ludhiana, Amritsar and other parts of Punjab.

Neither list states the ground in each case. It gives the parties and the project, with a time to appear. The rest has to be read from the Act itself.

What section sixty covers

Section sixty is the penalty clause for section four of the Act. Its text says that a promoter who "provides false information" or breaks section four is liable to a penalty that may extend up to a share of "the estimated cost of the real estate project, as determined by the Authority".

Section four is the registration section. It lists the papers a promoter files to register a project, and it also sets duties that run for the life of the project. One of those is the duty to keep project money in a separate account and to have the accounts audited after the end of each financial year. The financial years printed against each notice on the second list point to that kind of yearly duty. The list does not say so in terms, and this piece does not assume the ground in any single case.

What section sixty one covers

Section sixty one is the general penalty clause. It applies when a promoter "contravenes any other provisions of this Act" outside sections three and four. It also reaches breaches of the rules and regulations made under the Act. The ceiling is the same as under section sixty, a share of the estimated project cost as the authority determines it.

Section sixty one is wide. It can cover a failure to update the project page on the RERA website. It can also cover a breach of the duties in section eleven, which deal with the promoter's continuing obligations to buyers and to the authority. Section eleven requires, among other things, that the promoter keeps the project page current with quarterly updates on bookings and construction, and that the promoter makes the approved plans available to buyers.

What a hearing means for a buyer

A penalty under these sections is paid to the government. It is a regulatory penalty, and it is separate from the interest or refund a buyer can claim under section eighteen. A buyer who wants interest for delay or a refund has to file a complaint of their own. The penalty hearing does not do that for them.

The listing is still useful information. It shows which projects the regulator has called up for a hearing. A buyer weighing a booking in a listed project can read the project page on the RERA website and see which quarterly updates and annual documents are uploaded. A gap there is visible to anyone.

A buyer who already owns a unit in a listed project can also follow the outcome. Punjab RERA publishes its orders, and a penalty order will set out what the authority found. As of Sunday the twenty fifth of October, the authority's orders and judgements page showed no order dated the twenty second of October, so the outcome of these hearings is not yet public.

Why one developer appears so often

The number of entries for one developer reflects how RERA works. Registration is project by project, and so are the duties that follow it. A developer with several registered phases in one township can face a separate notice for each phase. The count of entries is therefore a count of projects. It says nothing about how serious any single case is.

What these lists do not show

The lists do not show whether any promoter is in breach. They are notices to appear, and the promoter has a right to be heard before any penalty is imposed. A case can end with the promoter filing missing documents, or it can end in a penalty order. The lists also say nothing about construction progress or the money buyers have paid.

The lists are also a snapshot of one day. Cases are adjourned and relisted, and a project can appear on a later list for a different reason.

How a penalty case usually runs

A case under these sections normally starts with a notice from the authority. The promoter is asked to respond to the point the authority has raised, and is then called to appear. At the hearing the promoter can file the missing papers or argue that no breach occurred. The authority can also adjourn the case to a later date. The authority then decides whether a penalty is due and fixes its size within the ceiling the Act sets. An order is passed and published.

A promoter that disagrees with a penalty order can appeal to the Real Estate Appellate Tribunal. Under section forty three of the Act, a promoter appealing against a penalty has to deposit at least a share of the penalty before the appeal is heard. That rule exists so that appeals are not used only to delay payment.

Where this fits

Punjab RERA publishes cause lists like these on its website ahead of hearings. These matters were heard on the twenty second of October, and orders are awaited. For buyers in Kharar and Zirakpur, where many smaller projects are registered, these cause lists are among the few public signals of how the regulator sees a promoter's compliance.

Related reading

- A Mohali plot allotment cancelled over dues: what Punjab RERA ordered after the resale
- Builder delayed possession in Mohali: what RERA Punjab actually awards and how long it really takes

Sources: The sources we use are listed on our Editorial Sources page.

This piece describes Punjab RERA cause lists for hearings held on the twenty second of October and the published text of the Real Estate Regulation and Development Act. A listing is not a finding against any promoter. Orders from those hearings are awaited. Nothing here is legal advice, and any booking turns on its own papers and facts.