Dubai real estate watchdog RERA has not prosecuted a single developer, RERA CEO Marwan bin Ghalaita has told Arabian Business.
“We did fine some developers, but prosecuted, no. So far we did not prosecute anyone. We did impose fines. But if anybody be proving that someone is doing something wrong, I will not hesitate to send him to the prosecutor,” bin Ghalaita, who has been head of RERA for three years, said.
He added RERA had the ability to impose fines on developers found to be committing fraud, or falsifying statistics.
“What we are doing is, we are already by law giving penalties to a developer if they are late or if they don’t submit documents. About AED10,000. And I have a penalty up to AED500,000 I can impose on the developer. Half a million, and then I can make it a million, and then I can make it a million and a half. But this is all regulation penalty, if they don’t share information with me, if they do a fraud on an investor… If they play tricks with the progress report,” he said.
Bin Ghalaita said RERA was looking to introduce a new law under which developers who failed to meet delivery deadlines were hit with fines.
“If they are late, we are doing a new step now. At the Land Department we are introducing the Real Estate Investor Protection Law, and we are telling all the developers for the new contract, if you are putting a penalty on the investor, you should put a penalty on yourself. It should be equal. And this is coming very soon, and we are encouraging all investors to ask for this clause in their contracts.”
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