Understanding the New SOP for Project Revocation under RERA Bihar

The Bihar Real Estate Regulatory Authority on September 10^th 2024 issued a Standard Operating Procedure (SOP) for the revocation of a project’s registration upon the promoter’s request. This change comes in light of the Real Estate (Regulation and Development) Act, 2016, which, until now, didn’t have a specific process for discontinuing a registered project.

What is the New SOP About?

The newly issued SOP by RERA Bihar, dated September 10, 2024, provides a structured process for promoters seeking to revoke the registration of their projects under Section 7(1)(a) of the Real Estate (Regulation and Development) Act, 2016. This SOP aims to streamline the procedure for when a project is deemed non-viable, which could be due to a lack of bookings or other factors affecting its feasibility.

Preconditions for Revocation

Before submitting a request for revocation, several conditions must be met:

1. No Bookings:
   • The project should have no bookings recorded.
2. No Financial Transactions:
   • The RERA account associated with the project should show no transactions. A bank statement, signed by the Branch Manager, must be provided from the date of the account’s opening until the application submission.
3. Chartered Accountant Certificate:
   • A certificate from a practicing Chartered Accountant is required, confirming that no booking amounts or installments have been received.
4. Cancellation of Agreements:
   • Evidence must be provided showing the cancellation of the Development Agreement with landowners.
5. Additional Documents for Un started Projects:
   • If the project has not yet commenced construction and no bookings have been made, additional documentation is required:
     • Cancellation of the project map.
     • Cancellation of No Objection Certificates (NOCs) from the Airports Authority of India (AAI), Fire Authority, and Environmental Certificate from the SIEAA/Pollution Board, if applicable.
     • Any other documents specified by the Authority.
     • Evidence of payment of any imposed penalties or charges.

How to Apply for Revocation

Here’s a step-by-step guide to applying for project revocation:

1. Submit Online Application:
   • Fill out and submit an online application in Form-I to RERA Bihar, accompanied by the prescribed fees.
2. Declaration and Affidavit:
   • Include a notarized Declaration-Cum-Undertaking and an affidavit for a No Objection Certificate (NOC) between the promoter and the landowner in Form-II.
3. Attach Required Documents:
   • Ensure that all documents related to the preconditions are included with the application.

Fee Structure

The fee for processing the revocation application varies based on how long the project has been registered:

• Within One Year of Registration: Rs. 1.5 Lakh
• After One Year but Before Two Years of Registration: Rs. 3 Lakh
• After Two Years of Registration: Rs. 6 Lakh

Processing the Application

Once the application is submitted, the process involves several steps:

1. Scrutiny:
   • The application will be reviewed under Section 7(1)(a) and presented to the Authority’s bench.
2. Hearing:
   • A hearing will be scheduled, with at least 30 days’ notice. The promoter must publish a notice in one Hindi and one English newspaper at least 15 days before the hearing. The notice should include details such as the promoter’s name, project name, registration number, project address, and the date of the hearing.
3. Failure to Publish Notice:
   • If evidence of newspaper publication is not provided, the bench may either reject the application or schedule a new hearing date.
4. Revocation Decision:
   • Upon approval, the Authority will notify the Inspector General (IG) Registration to stop the registration of agreements for sale and sale deeds for the project. The relevant bank will also be informed to halt any transactions.
   • The project will be removed from the website, not listed in the defaulter list, and not covered under Section 8 of the RERA Act. It will also not be considered for project grading.

Information about the revoked project will be published on the RERA Bihar website for public view.