In an unprecedented development, the adjudicating authority of RERA detained a builder under civil prison for 15 days for alleged wilful disobedience.

Developer Who Violated Order Held For 15 Days

In an unprecedented development, the adjudicating authority of RERA detained a builder under civil prison for 15 days for alleged wilful disobedience. The man’s health deteriorated from the shock after which he had to be admitted to a private hospital in Gandhinagar. The builder was taken into the custody by RERA officials and kept in the office in Gandhinagar overnight after he was allegedly found guilty of disobedience.

RERA’s adjudicating authority P R Patel took the stringent action after he found irregularity and that the regulator had granted injunction on sale of seven bungalows built under a scheme called Kedarnath Bungalows, developed by Rajesh Motiyani and his partners in the firm Rameshwar Developers. The authority has also issued notices to the three partners Anil Gidhawani, Anil Vidhani and Kamlesh Makhija.
As per the case details, the firm had purchased land from Ozon Developers for a consideration of Rs 9.15 crore by registering a sale deed on October 21, 2015. The applicants, Ashish Tekwani and others, purchased seven bungalows in the scheme in 2016-17 and paid earnest money to the firm. The project application was pending and the scheme also remained uncompleted. The applicants later filed a complaint before RERA in 2019 over the issue.

During the proceedings, Motiyani declared before the authority that he had no objection if the interim or final injunction would be granted against transfer of the bungalows. He had also declared that he was reconstituting the partnership firm and preparing necessary documents for registration before RERA. The three partners remained absent in the proceedings. On September 12, 2019, RERA passed an order in favour of the applicants and directed the builder to complete the remaining work within six months and hand over possession to them. It was also directed not to sell the seven bungalows or transfer the scheme to anybody else without taking consent of the allottees. The order was not challenged in any higher forum and hence it attained finality.

When the builder didn’t comply with the order issued by RERA and didn’t give the possession, the complainant filed Execution Proceedings under section 40 of Gujarat RERA Act on March 17, 2021. During the hearing, the builder assured that construction would be completed and the approval of the project would be taken from RERA.

Later, the builder sold the land with all 12 bungalows to one Arjun Khilwani for a consideration of Rs 3.74 crore through a registered sale deed at Naroda sub-registrar office without obtaining prior approval from RERA. The sub-registrar registered the property though the order issued by RERA on September 12, 2019 was conveyed to his office. The authority sought explanation, but he couldn’t give any and he was taken into civil custody for 15 days for wilful disobedience on Monday.

Meanwhile, the court issued show cause notice to the sub-registrar of Naroda ward, Praful Modi, for registering the property despite an injunction granted by RERA over selling or transferring bungalows booked by a complainant. As per RERA law experts, this is the first time such a situation has arisen.