Promoters Must Publish Project QR Codes In Every Brochure & Advertisement: UP-RERA

NEW DELHI: Uttar Pradesh real estate regulatory authority (UP-RERA) has now assigned a unique QR code to every new projects being registered with it and to every project with live or valid registration.

Buyers can scan this code to get all the details of the project from the portal of UP-RERA and verify the information about the projects provided by the promoter in the advertisements.

Sanjay Bhoosreddy, chairman, UP-RERA said, “To make sure that the consumer readily gets complete and correct information about the project and the promoter, we have assign a unique QR code to the projects and made it mandatory for the promoters to give this on all the documents shared with the allottees and all the promotions and advertisements.”

In order to ensure that the benefits of this facility actually reaches the consumers, the authority has made it mandatory for the promoters to publish this project QR code in all sort of documents shared with the allottees such as the booking forms, allotment letters, BBAs and all the advertisements for promotion and marketing of the project.

All details related to the project, such as land documents, approved layouts and maps, project specifications and amenities, start and completion dates, bank accounts, promoters, co-promoters, registered agents, quarterly progress report (Q.P.R), O.C. or C.C., other requisite and NOCs will be available.

RERA had observed that the home buyers have no easily accessible medium of verifying the features, amenities and other details mentioned in such advertisements and have to rely solely on the information disseminated by the promoters or the real estate agents. But hence forward, the same advertisement will become the source of verification of the information relating to the project.


MahaRERA To Soon Announce Real Estate Project Grading Details

Details of real estate project grading are likely to be made public by the Maharashtra Real Estate Regulatory Authority (MahaRERA) in a month. The MahaRERA intends employing artificial intelligence (AI) tools to grade these projects, Ajoy Mehta, chairman of MahaRERA.

The MahaRERA in September 2023 had announced that it will start the process of grading real estate projects in Maharashtra. The regulatory authority had chosen four parameters based on information uploaded by developers. These are technical, financial and legal details, and project overview. Information about these parameters would be displayed for homebuyers to help them take a decision.

The MahaRERA is working on a system that will ensure that the real estate projects are graded with the help of artificial intelligence (AI) tools with minimal manual intervention.

‘Norms on what basis we will grade real estate projects are ready. We had put out a discussion paper for grading and we have already received suggestions and objections for the same, which have also been incorporated,” said Mehta.

“It will take time for the entire new IT system to be ready. However, we are hoping that the new system for grading real estate projects through AI-based tools will be ready in the next 15 to 20 days. I think we should be able to go live with the grading in the next one month,” he said.

According to MahaRERA, the grading matrix will be updated every six months of the financial year. “The first period will be from October 1, 2023 to March 31, 2024. The grading matrix shall commence once the due date for uploading the last quarterly progress report (QPR) is done by April 20, 2024,” MahaRERA had announced in September 2023.

In Maharashtra, more than 46,000 projects have been registered since MahaRERA came up in May 2017 and more than 15,000 projects have been completed. The MahaRERA, since its inception, has received more than 25,000 complaints of which more than 17,000 have been settled, according to the MahaRERA data.


Inviting Suggestions on Draft Regulation for Quality Assurance

Real Estate (Regulation and Development) Act 2016 places significant emphasis on the Quality of Construction.

Section 14(3) of the Act stipulates that “In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge within thirty days, and in the event of the promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act.”

While the Act does provide remedial measures for defect rectification, it is essential to recognize that the best approach to safeguarding the interests of homebuyers is not limited to offering remedies after defects have surfaced. Instead, the focus should be on establishing processes and standards that minimize the likelihood of defects occurring in the first place.

MahaRERA’s Proactive Approach to Quality Assurance

MahaRERA proposes a proactive approach centered on quality assurance as its primary objective. This approach supports preventing defects from arising initially, thereby obviating the need for costly rework. By ensuring rigorous standards of material quality and workmanship throughout the construction process, real estate projects can be executed with a defect-free outcome that adheres to strict quality standards.

This proactive stance not only benefits homebuyers by delivering high-quality homes but also contributes significantly to the sustainability and reputation of the real estate industry. It highlights the importance of quality assurance as a preemptive measure rather than just a reactive one, ultimately bolstering the trust and confidence of homebuyers in the real estate market.

In light of this, MahaRERA has developed a Quality Assurance Certificate wherein the promoter shall report on a yearly basis on the following four parameters:

  1. Structural Design, Stability, and Testing
  2. Quality of Input Materials
  3. Quality of Workmanship
  4. Miscellaneous

The declaration shall be displayed to homebuyers for informed decision-making. Therefore, MahaRERA has prepared a draft declaration on Quality Assurance to be given by the Site Supervisor/Site Engineer, duly certified and submitted by the promoter on a yearly basis. The proposed Form 2A shall replace the existing Form 24.


MahaRERA Keeps Registration Of 1,750 Lapsed Housing Projects In Abeyance

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has kept the registration of 1,750 lapsed housing projects across the state in abeyance and has initiated measures to take similar action on additional 1,137 projects.

Of these 1,750 projects, the Mumbai Metropolitan Region has the highest number of 761 projects kept in abeyance. The Pune region, with 628 projects, has the second highest number of such projects, followed by North Maharashtra at 135, Vidarbha at 110, Marathwada at 100, Dadra Nagar Havel at 13, and Daman at 3.

The real estate regulator has urged homebuyers to be cautious while investing in any of these projects. The complete list of these suspended projects is available on MahaRERA’s website.

Mentioning the proposed date of the project’s completion is mandatory for developers applying for MahaRERA registration. If the project is completed after this declared project completion date, the developer will be required to submit an Occupancy Certificate i.e. Form IV to MahaRERA.

In case the project remains incomplete, the developer will have to initiate the registration renewal process. In the event of any challenges in starting the project, an application for the project’s de-registration is necessary.

If none of the above measures are taken by the developer, then such a project is declared as lapsed after its proposed completion date. Once a project is declared lapsed, its bank accounts are sealed. The developer is also barred from advertising, marketing the project, and selling and registering the flats in it.

Owing to such reasons, the MahaRERA had issued a 30-day show cause notice to developers of 6,638 projects across Maharashtra. Of these, 3,751 projects have either submitted an Occupancy Certificate or applied for renewal of registration, or filed for project cancellation.

Of the remaining 2,887 projects, MahaRERA has kept 1,750 in abeyance and initiated steps to suspend 1,137.


Maharera Tells Builder To Pay Buyer For Delay In Giving Flat

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed the builder of Godrej 24, a Hinjawadi-based project, to pay an interest amount for a delay in giving possession of a flat to an Army officer.

The officer had moved a petition against Pearlite Real Properties Private Limited also for providing him a stack parking slot while promising a covered car parking.

Lieutenant Colonel Pratap Rajnish Singh booked a flat in a project known as Godrej 24 in 2017. According to the terms and conditions mentioned in the agreement, the date of possession promised by the builder was September 30, 2021. Later, the builder obtained an extension for the said project as a grace period till September 30, 2022. However, the possession was given to the complainant in January 2023.

Singh had moved MahaRERA in this regard. Recently, the MahaRERA coram Mahesh Pathak partly allowed the complaint and directed the builder to pay interest for the delay from October 2022 for every month till the actual date of possession of the said flat to Singh till January 2023 on the actual amount paid by the complainant towards the consideration of the said flat at the rate of Marginal Cost Lending Rate (MCLR) of SBI plus 2% as prescribed under the provisions of Section 18 of the RERA.

Advocate Gandhar Sonis, who appeared on behalf of the complainant, highlighted that several issues like car parking and water supply etc. were still not solved despite the complainant making regular and timely payments to the builder.

The issue of car parking was solved only when the complaint was filed with MahaRERA. As per the mandate of Section 18(1) of RERA, which clearly states that “if the allottee does not intend to withdraw from the project, he shall be paid by the builder interest for every month of delay till the handing over of the possession at such rate as may be prescribed”, has to be taken into consideration and the legislative intent behind granting interest for delayed possession should not frustrate.

The respondent reiterated the facts stated in the written submission. Additionally, the respondent contended that the said project was constructed as per the approved plans and the contentions of the complainant to provide amenities as per brochure is false and no material record is placed on record.

The respondent stated that proper water connection and gas connection are provided in the said building as per the sanctioned plans and the project is complete in all aspects within time. Hence, the complaint of the complainant be dismissed.
The Occupancy Certificate (OC) for the said project was obtained on March 20, 2023, and the possession was offered to them in September 2022.

But after perusing the entire record the MahaRERA observed that the Builder failed to show any cogent documentary proof on record that they ever intimated the said OC to the complainant and offered possession of the said flat with OC despite directions being given to it.

The MahaRERA also put forth light on Section 19(10) of the RERA which provides that “every allottee shall take physical possession of the flat within a period of two months of the occupancy certificate issued for the said building”.


Developers, Homebuyers Oppose Up Rera’s Occupancy Certificate Rule, Here’s Why

On Monday, a prominent real estate developers’ association and a homebuyers’ group in Noida urged UP RERA to reconsider its directive mandating builders to obtain an occupancy certificate (OC) before issuing possession letters.

According to a report by news agency _PTI_, both groups stated that this decision was not in the best interest of homebuyers in long-delayed projects in western Uttar Pradesh, including Noida and Greater Noida.


In a statement on June 8, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) said promoters needed to receive OC (occupancy certificate/ completion certificate) of a project, before offering possession letters to allottees. According to UP RERA, this was done “to prevent arbitrariness” being done by the promoters through the offer of possession letters sent to flat buyers and to eliminate the disputes arising between them due to this.


“The UP RERA needs to reconsider this decision in the benefit of homebuyers,” CREDAI Western Uttar Pradesh Secretary Dinesh Gupta told _PTI_.

“It would have been good if this direction was made for new projects, but that sort of categorisation has not been made. This decision would impact the homebuyers in several stuck projects who have completed the units but are yet to get the OCs from local authorities,” Gupta said.

OCs are given by local authorities in Noida and Greater Noida. However, a large number of OCs and registries, among others, in several group housing projects have been on hold for a long in the twin cities due to various reasons, including pending dues by builders to the authorities.

Stakeholders say end-users, who buy a house to live in it, are faced with maximum trouble instead of investors, who buy flats as an investment option in stuck projects. This is because end-users pay not only EMIs on home loans but also rent on current accommodations.


Abhishek Kumar, president of the Noida Extension Flat Owners’ Welfare Association (NEFOWA), felt the UP RERA is making rules “without understanding the ground reality”.

“The rule declaring possession without OC or CC as illegal is very disturbing. It is like using the same stick to drive everyone away. In old projects, where the builder is neither paying the money nor attending meetings, home buyers will face great inconvenience. They will have to bear the burden of EMI and rent together. This is not in the interest of home buyers at all,” Kumar said.

However, he emphasised that this rule will prove to be a “milestone” in new projects, where the land has been sold by the authority after taking the full amount.

But where OC or CC is pending due to the dues of a bankrupt or missing builder, these rules are not in the interest of buyers at all, Kumar said.

In its June 8 statement, UP RERA Chairman Sanjay Bhoosreddy noted that promoters send “final demand letter” and “final demand notice” using the name and language of “offer of possession”, which creates confusion among the allottees, and it carries some binding conditions.

“‘Offer of possession’ should be meant only for the purpose of taking possession,” he said.

CREDAI office-bearers noted that in 2017, UP RERA had made a provision for deemed OC, allowing possession in projects that had the four critical NOCs (no-objection certificates) for fire, electricity, lift and finance in them.

CREDAI Western UP Vice President Suresh Garg said generally, builders give a final demand letter in their offer letter after the OC, or deemed OC, that can be as per the terms of their builder-buyer agreement.

“But most builders mention the date of receipt of OC and letter number to give reference to the home buyers and to show credibility. The demand letter cannot be called a possession letter. If a builder does so, he should also clarify when the possession can be given so that confusion does not arise,” Garg added.


RERA stands for Real Estate Regulatory Authority. It’s an organisation in India established under the Real Estate (Regulation and Development) Act, which was passed in 2016. The purpose of RERA is to regulate the real estate sector and protect the interests of homebuyers. Developers must register their projects with the RERA authority in their state before they can start selling. This ensures basic project details are available for buyers’ reference.


“People Are Not Aware Of The Provisions And Guidelines Of RERA”

A 3-day real estate workshop was jointly organised by The National Real Estate Development Council (NAREDCO), under the aegis of the Ministry of Housing & Urban Affairs, and Delhi RERA at the second Management Development Programme titled ‘RERA & Real Estate Essentials’. Held from May 15th to 17th, 2024 at PHD House in Delhi under the banner of the National Institute of Real Estate Development (NIRED), the workshop aimed to provide comprehensive training to the various stakeholders of the real estate industry.

While addressing the participants, G Hari Babu, National President of NAREDCO said, “Real estate sector is at the cusp of a giant leap and will contribute a whopping 15% to country’s GDP by 2050. With a current market valuation of 250 billion dollars, real estate sector is with the expected growth rate of 16-17% will almost contribute around 15% to the country’s GDP by 2050. Among other things this industry requires large number of trained professionals considering its size, time and value involved. This management development program is a step in that direction and reflects our dedication to cultivating talent and promoting excellence in the real estate domain. Through providing organizations, their employees, and professionals with the essential knowledge and skills required to excel in the current competitive landscape, we aim to catalyse sustainable growth and promote professionalism in the industry.”

Anand Kumar, Chairman, NCT of Delhi RERA, commented, “Real estate is a dynamic sector and the pace of change has only accelerated in the last few years and by imparting transparency to the sector, RERA has a big role to play in this. However, despite all the efforts, people are not aware of the provisions and guidelines of RERA. This workshop is a step in that direction. Further, we not only need to understand the gradually evolving landscape but also equip realty professionals with the right knowledge, foster professionalism and instil the culture of compliance among all stakeholders involved.”

“Real estate and construction sector is not only the second largest employer in the country but also contributes significantly to its GDP. In the last few years, it has also witnessed rapid growth. Therefore, it is imperative to regularly impart comprehensive training and undertaking capacity building initiatives among the professionals engaged in real estate, construction, and infrastructure sectors. We are happy with the number of participants and the response from the fraternity,” said Harsh Bansal, President, Delhi NAREDCO.


Property Conveyance: KRERA Asks Developer to Hand Over Possession of Common Areas to Homebuyers

While real estate experts in Bengaluru applauded handing over possession of common areas to the association, they flagged several issues affecting homebuyers.

The authority notes that most of the allottees had moved into their apartments in Mahendra Aarna located in Anekal by 2019, however, the developer had failed to form an association.

In one of the first such rulings, Karnataka RERA has ordered a developer to hand over the possession of common areas to the homebuyers’ association in a south Bengaluru project.

In this case, the developer Mahendra Homes Pvt Ltd obtained the occupancy certificate and completed the project. However, KRERA pointed out in its order dated May 16 that according to the RERA Act, the developer should transfer the possession to the association.

The authority noted that as per section 17 of the RERA Act, the developer must hand over actual possession of the common amenities and other titles to the association of the allottees within three months of obtaining OC. “The Act clearly states that the respondent must maintain the common areas until it is handed over to the association. Thus, the developer is ordered to hand over the possession of common areas within two months of the order date,” KRERA said.

Moneycontrol has earlier reported a lack of clear state guidelines on the conveyance of properties had left several owners in a lurch. Experts say Karnataka developers fail to convey the common areas to the homebuyers thus retaining ownership in the property even after being sold.

The Case

The authority noted that most of the allottees had moved into their apartments in Mahendra Aarna located in Anekal by 2019, however, the developer had failed to form an association.

Thus the homebuyers accused the developer of charging unreasonable maintenance costs, including threats of disconnecting essential services like electricity in case the homebuyers defaulted on the fines levied.

Among the other allegations against the developer in the project, homebuyers said the developer is providing electricity through a commercial line — without applying for a residential connection.

However, the developer contended that it had already completed the project and obtained the occupancy certificate. “They have formed an association of allottees according to the state real estate laws by executing the deed of declaration (DoD) in 2023,” the order mentioned.

A DoD is a legal document used in the transfer of ownership of property from one person to another.

The Order

The authority mentioned that the DoD has been executed so that the association is formed, according to the laws. However, a KRERA inspection in January 2024 found that several amenities remain incomplete — including a multi-purpose hall, eight borewells, lifts, and car parking.

Additionally, the developer has not provided the individual Bangalore Electricity Supply Company Limited meters to each apartment as promised. Thus it ordered the developer to complete the promised amenities and provide the electricity meters.

A Problem at Large

While real estate experts in Bengaluru applauded the order for handing over possession of common areas to the association, they flagged several issues affecting homebuyers.

Dhananjaya Padmanabhachar, director, Karnataka Home Buyers Forum, said, “Today in Karnataka after the registration of the DoD, the builder exits the project without executing the registered conveyance deed. As the DoD mentions the undivided share of land, homebuyers are left under the impression that the land title has been transferred to them and they are the owners.”
Thus, without a conveyance of common areas, the land records at the land revenue department continue to reflect the names of the previous landowner, Moneycontrol had reported.

Additionally, Padmanabhachar pointed out, “The state government has submitted its response in public interest litigation to the Karnataka High Court, dated 2021, that registration of the DoD does not amount to the registration of the association. Unlike, the authority order in this case.”


MahaRERA Suspends Registration Of 20,000 Real Estate Brokers

Maharashtra’s realty regulator on Thursday said it has suspended the registration of 20,000 real estate brokers, leaving only 13,000 such registered agents in the state. There were a total of 47,000 agents registered with the regulator, which began the registration of the middlemen for property transactions in 2017.

Earlier this year, it cancelled the registration of 13,785 agents for not renewing their licenses.

The registrations of an additional 20,000 agents have been suspended for one year for not obtaining MahaRERA’s real estate agent certificate of competency or not uploading the certificate on the watchdog’s website, an official statement said.

Licenses of these 20,000 agents can be renewed if they complete training, obtain the certificate of competency, and upload the same on the portal within a year, it added.

According to an official, about 5,500 new candidates are likely to appear for the examination to get registered as agents next month. The body’s chairman Ajoy Mehta said an agent plays an important role and it is essential for them to be well-versed with the Real Estate (Regulation and Development) Act, 2016 regulation.

“MahaRERA has made it mandatory for agents to undergo training, clear the examination, and obtain certification. This decision was taken on January 10, 2023, and was extended multiple times before finally becoming binding for all agents on January 1, 2024,” he said.

Despite this, around 20,000 agents operating are still unqualified and their approval was suspended, he said, warning that the regulator will not hesitate to cancel the registration of developers who will continue to engage with the unqualified agents.


MahaRERA Introduces Minimum Specifications For Retirement Homes And Senior Citizen Housing Projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced comprehensive regulations and specifications for retirement and senior citizen housing, applicable across Maharashtra. These guidelines, detailed in a recent circular, focus on essential aspects such as building design, green building principles, lifts & ramps and safety and security.

Compliance with these minimum physical specifications is mandatory for executing these projects. Developers will now need to incorporate these provisions in the agreement for sale, as the regulation takes effect across Maharashtra.

Previously, in February, MahaRERA had issued a circular on draft model guidelines for retirement and senior citizen housing projects, inviting suggestions and views from stakeholders. The positive response led to the inclusion of several useful suggestions, enhancing and strengthening the final guidelines.

The draft guidelines were based on model guidelines issued by the Ministry of Housing and Urban Affairs. MahaRERA’s objective is to ensure a standardised code for all senior citizens’ housing projects, according to officials.

Key provisions include the requirement for all buildings with more than one floor to have an elevator accessible for wheelchairs and
mobility equipment.

Internal and external building designs that facilitate the free movement of wheelchairs, including ramps, door openings not less than 900 mm with a preference for sliding doors, lifts equipped with audio-visual signage, at least one elevator large enough to accommodate a stretcher and paramedic staff, and staircases with a width of not less than 1500 mm, among others.

These guidelines are now in effect in the state. Any future project proposal for senior citizen housing must comply with these guidelines during implementation, MahaRERA states.