The bench of Member Sudhir Kumar Sharma took serious note of the promoter's gross negligence. They've not only issued a Recovery Certificate (RC) for the ₹10 lakh penalty but have also ordered the public shaming of the company's promoters. Their names and photographs will be published on the RERA website as defaulters under Section 34(c) of the Act, a clear warning to potential customers.
The Legal Tangle: A Lapsed Project and Ignored Notices
This entire legal battle stems from a suo-motu proceeding initiated by the Authority concerning the Sushant City Ajmer Phase-III project (Registration Number RAJ/P/2017/282). Back on June 22, 2022, the RERA Court had imposed a substantial penalty of ₹10,00,000 (Ten Lakh Rupees) on the promoter company for violating RERA Act Section 61.
The builder was given 45 days to deposit this amount and submit a compliance report. Fast forward four years, and not a single rupee has been paid. The court issued repeated legal notices via speed post in February, May, and July of this year. Despite confirmation of notice receipt on July 6, 2026, no lawyer or representative from the promoter's side appeared for the execution hearing on July 28, 2026.
Project Status and Deliberate Defiance
A check by RERA's Law Research Team on the project's portal revealed that its registration officially expired on December 13, 2020, and it has since been categorized as 'Lapsed'. The last quarterly report from 2020 showed only 65% completion, with no Annual Progress Reports (APR) ever submitted by the promoter. The RERA Court concluded that the promoter was deliberately flouting court orders and attempting to evade the law.
Dual Action: Recovery and Public Exposure
Member Sudhir Kumar Sharma, in resolving the execution proceedings, has wielded a twin legal hammer. A Recovery Certificate has been immediately issued under Section 40(1) to reclaim the ₹10 lakh penalty from Ansal Properties & Infrastructure. The RERA Registry has been instructed to forward the matter to the Ajmer District Collector, enabling the recovery of government dues by attaching and auctioning the builder's properties, much like land revenue collection.
To safeguard the public and future buyers from such rogue builders, Section 34(c) of the RERA Act has been invoked. The Registry has received strict directives to publicly publish the details of this defaulting project, along with the names and photographs of its promoters, on RERA's official web portal. This firm decision from RERA makes it abundantly clear: developers who boast about their credibility in real estate but then ignore regulatory orders will face not only severe financial consequences but also a complete demolition of their public reputation.
Frequently Asked Questions
Q1: What does a 'Recovery Certificate' from RERA mean for a builder?
A Recovery Certificate allows the District Collector to initiate proceedings for the recovery of dues, treating them like arrears of land revenue. This can involve attaching and auctioning the builder's properties to collect the penalty amount.
Q2: How does RERA's public display of defaulters help homebuyers?
By publishing the names and photos of defaulting promoters on its website, RERA provides a crucial warning to potential homebuyers, allowing them to make informed decisions and avoid investing in projects by builders with a track record of non-compliance.
For more detailed news coverage on real estate regulations, visit https://en.mttvindia.com.
