Since the enactment of real estate regulation law, RERA, and establishment of regulatory authorities across states, a total of 67313 projects have been registered in the country, 46% of them in Maharashtra alone.

Over 67k projects registered under RERA, homebuyers say just tracking registration not enough

Since the enactment of real estate regulation law, RERA, and establishment of regulatory authorities across states, a total of 67,313 projects have been registered in the country , 46% of them in Maharashtra alone. The western state also leads the list so far as registration of property agents is concerned while Uttar Pradesh tops among states in several complaints disposed of by regulators.

Official data till July 10 show that 31,221 projects have been registered with the RERA in Maharashtra, followed by 8,685 in Gujarat. Karnataka has the third maximum number of projects registered with RERA at 4,151. The UP RERA has registered 3,033 projects and the tally in Madhya Pradesh is 3,659.

So far as the registration of real estate agents or property dealers is concerned, out of the total 51,895 registrations across states, Maharashtra alone has registered 29,995 of them. In UP, 4,579 such agents have been registered while Delhi has registered barely 389 agents.

The data also shows that so far 70,001 complaints have been resolved by the regulators with two benches of UP RERA leading the list having disposed of 27,825 complaints. Haryana, which has also set up two benches, has reported disposal of 14,591 complaints, followed by Maharashtra where 10,043 complaints have been resolved.

Abhay Upadhyay, who heads the Forum for People’s Collective Efforts (FPCE), a group that campaigned for the enactment of the RERA, said, “Merely tracking the number of projects registered under RERA is not of much significance especially after five years. We need to seek data like the number of projects completed within the scheduled date as per registration, number of projects granted an extension and completed within an extended period, number of projects delayed beyond one year from original scheduled completion and number of projects for which registration expired and extension also not sought by the promoter to assess the real success and effectiveness of RERA.”

He added similarly, the number of complaints disposed of by RERA authorities is of not much importance. To gauge the effectiveness of RERA, there is a need to know how many promoters have obeyed the orders of RERA, Upadhyay said.

“The RERA Authorities must disclose the number of refund orders passed by them and an actual number of refunds received by the complainants. On the same lines, they also must disclose how many promoters have obeyed their orders about handover, completion of facilities and amenities and lastly how many have paid penalty if any levied. Till such details are made available by the authorities, the actual impact of RERA cannot be gauged,” he said.

Source: https://timesofindia.indiatimes.com/india/over-67k-projects-registered-under-rera-homebuyers-say-just-tracking-registration-not-enough/articleshow/84532767.cms

In a first, the Real Estate Regulatory Authority (RERA), Rajasthan appointed a third party to complete the construction of 'Hyde Park' project situated behind dalda factory in durgapura after revoking the registration of the promoter.

Rajasthan: RERA appoints third party to complete pending project

In a first, the Real Estate Regulatory Authority (RERA), Rajasthan, has appointed a third party to complete the construction of ‘Hyde Park’ project situated behind Dalda factory in Durgapura after revoking the registration of the promoter.

The decision was taken on a petition filed by Hyde Park Flat Owners Association.

As per the orders, the new developer will commence construction within 30 days from the receipt of installments from the members of the complainant association. The apartments will have to be completed within two years from the start of work.

The order reads, “The construction and expenses from the escrow bank account will be monitored by a project management consultant, which will be approved by the authority. The progress of construction and the details of the bank account would be submitted to the authority on a monthly basis before the 10th day of each month.”

The project Hyde Park was launched in 2014 by the Adarsh Buildestate Limited (ABL) as developer promoter. The construction was started by the promoter respondent, which proceeded at a good pace till 2016, but slowed down during 2017 and came to a stop in 2018.

As per the development agreement, the project was to be developed into two stages: Phase I consisting of 593 flats and Phase ll consisting of 296 flats. The entire project was to be completed within 48 months commencing from April 1, 2013. However, the developer miserably failed to complete first phase.

Phase I was later revised and it was proposed to construct 265 flats. Now, RERA has directed to complete Phase 1 after appointing third party as 150 odd allottees booked their flats with the promoter on the promise that they would be handed over the possession of their apartments by March 3, 2017, which was later extended by till March 31, 2021.

The remaining 115 will be booked and sold by the third party to meet the construction expense.

“The new developer, landowners and the complainant association will enter into a tripartite agreement wherein the rights and responsibilities and obligations of all the three parties in respect of completion of revised Phase I shall be recorded,” reads the order.

Source: https://timesofindia.indiatimes.com/city/jaipur/rera-appoints-3rd-party-to-complete-pending-project/articleshow/84156072.cms

Buying a house is one the biggest investments you will make in your lifetime. A wrong property choice, can land you in big trouble. You can check all details of developers.

Planning to buy a house? Get all details about the developer from these sources

Buying a house is one the biggest investments you will make in your lifetime. A wrong property choice or decision, especially in the case of under-construction property, can land you in big trouble. Many homebuyers are waiting for more than decade to get possession of their houses. Numerous projects either got shelved or stalled in between, after accepting significant payments were made by buyers. There is no sign of refunds even after years fighting court cases.

So, to minimize the risk, here are few sources of information that you should tap, before taking the leap.

The RERA website: The real estate (regulation and development) Act, 2016 makes it mandatory for the developer, its projects and agents to obtain a registration number. Each project should have a separate registration number and the same should be mentioned in all advertisements and communications with the buyers. The first step should be to cross-verify the RERA registration, on the RERA website of the respective state.

“Homebuyers can log in to the RERA website and check a promoter’s details including name, contact information and project details of the past five years. This will help buyers understand the competency of the builder,” says Anupam Rastogi, Co-Founder and Head-NRI Sales, Square Yards.

“One also has access to project details such as project name, type, address, project area, approving authority, parking area, project status, estimated cost of construction, completion year and total project cost. Homebuyers should carefully check the details of construction work done under the ‘project status’ section. Information such as the extent of development pending, total amount collected from allottees, amount invested in the project, delay in projects, reasons for delays and expected completion date are indicators of the developer’s credibility and thus must be duly scrutinized,” added Rastogi.

Beside these, you should also check whether all the required approvals and permission to build and complete the project are available; a developer is required to upload and update all these documents on RERA website on a regular basis. Developers are also required to upload details of any cases filed against them, make sure you collect at all this information.

Financials and annual report: A lot of homebuyers are suffering because of financial mismanagement and siphoning of funds that developers indulged in during the past. Therefore, financial scrutiny and due diligence are a must. “Whether or not the project will be delayed and have the same quality as the builder promised initially depends entirely on how financially stable the builder is. This is why having a clear understanding of your builder’s monetary position is important. While the financial health of a listed builder is easy to gauge by gathering all the information they share with the stock exchanges, doing so might be difficult in case of unlisted players,” says Mani Rangarajan, Group COO, Housing.com, Makaan.com and Proptiger.com.

“It is imperative for homebuyers to verify the financial status of a real estate developer to get an idea about its balance sheet, legality of the project and whether it has defaulted on loan payments for banks, which in turn can save buyers from future project completion harassments,” says Rastogi.

If a developer is not listed, there are other ways to check the financials as well. “For other developers, buyers can get their financial information on the Ministry of Corporate Affairs (MCA) website, in the ‘view public documents’ section. Homebuyers can also check the website of the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to check whether the property is mortgaged with any bank or housing finance company,” says Rastogi.

Visit previous projects: It is good to have feedback on construction quality and after-sales services from homebuyers who are already living in the projects developed by the builder. “Property owners here will be able to share their experience with the builder, helping you gauge what is in store for you if you were to invest in a property developed by the builder,” says Rangarajan.

“Homebuyers can get a sound idea about the quality of materials used in construction, kind of fittings and electrical equipment used, the type of amenities on offer and whether the amenities are charged separately, or cost is included in total cost of the apartment,” says Rastogi.

Explore newspapers and social media: Newspapers and social media platforms such as Facebook, Twitter and LinkedIn and so on can help you get first-hand information. “Today, social media platforms act as a great tool that empower homebuyers by quick dissemination of information. The same has remained true of the media for a long time. A buyer who is looking to invest must get in touch with property owners and prospective buyers through social media to inquire about builders and housing projects. They must also follow real estate news in the media to have a better understanding of the sector in general and developers in particular,” says Rangarajan.

Feedback of homebuyers can help you make a good decision. “Social media sites are a perfect medium to read about client testimonials and homebuyers’ satisfaction stories,” says Rastogi.

Never make a property buying decision in a hurry or under the influence of any pressure tactics of the developer’s representative or real estate agent.

Ask for written documents or emails of all the claims and promises made by the developer or real estate agent.

Source: https://www.moneycontrol.com/news/business/personal-finance/planning-to-buy-a-house-get-all-details-about-the-developer-from-these-sources-7100991.html

The Maharashtra Real Estate Regulatory Authority has directed builders to hence forth inform flat purchasers to what extent they have received construction permission.

MahaRera tells builders to give flat buyers permission details

The Maharashtra Real Estate Regulatory Authority (MahaRera) has directed builders to henceforth inform flat purchasers to what extent they have received construction permissions.

Currently, builders only declare that they have received the “commencement certificate” or the CC for the building without specifying anything further.

For example, the civic authority issues only stage-by-stage permission to the developer. The CC can only be restricted for plinth level or for only the first five floors of a skyscraper.

“The flat buyer is under the impression that the CC is for the entire building. This may not be so in most projects,” said a RERA source.

On Monday, RERA chief Ajoy Mehta’s office issued a circular, stating builders must now specify the details of the CC they have received.

“It is observed that layout approvals although obtained for the entire project, many a times other approvals are obtained in stages, including the commencement certificate up to a plinth/zero FSI/or commencement certificate up to a particular floor level. Flat buyers are unaware of the stage wise approvals. Therefore, it has decided to prescribe a declaration by the promoter (builder) to certify the exact stage of the commencement certificate, so that flat buyers will be aware of the same,’’ said the circular.

Builders will now have to file a declaration form and upload it along with the CC while registering the project.

In another recent order, RERA asked builders to give more clarity to buyers about flat transactions. “To avoid transactions of flats/pIots, it is necessary to provide the information as soon as sale is concluded or booking is made,” it said.

Mehta had earlier also ordered builders to meticulously submit the list of all their flat buyers along with their signatures in a proper format when seeking various permissions. Earlier, they would get away with sketchy details or shoddy paperwork when they registered their projects.

The builder will require the consent of at least 51% of the allottees if he wants extension of the completion date of the project. The consent will now be required with their names, flat numbers and signatures.

The circular has also specified that in case developers want to change the floor plan, design or make any major alterations in the sanctioned plans, they will require the consent of two-third of the people who have booked flats in the project.

Each of them will have to sign with their names and flat numbers on the promoter’s letterhead. The consent application will clearly mention the earlier building plans and the new alterations sought by the developer.

Source: https://timesofindia.indiatimes.com/city/mumbai/mumbai-maharera-tells-builders-to-give-flat-buyers-permission-details/articleshow/83347765.cms

With the second Covid wave derailing the real estate industries again this year, many developers in the state have availed one year special extension from RERA, Rajasthan.

350 developers avail RERA’s 1-yr deadline extension offer

With the second Covid wave derailing the real estate industry again this year, many developers in the state have availed the one-year special extension from the Real Estate Regulatory Authority, Rajasthan (RERA-R).

According to a RERA official, over 350 promoters who failed to adhere to self-set deadlines for various reasons, including the pandemic, had applied online and taken extension.

A source said, “On March 9, the authority had allowed the promoters to avail one year special extension on account of pandemic, if they apply online for such extension till March 31, 2021. A special online window was created for this purpose. Following this, more than 350 developers in the state applied for extension after depositing standard fee.”

Last year in May, on the ground of force majeure, extension of 12 months was granted to the real estate projects expiring on or after March 19, 2020, after lockdown was imposed in the state owing to the first wave. Those projects that had lapsed before March 19, 2020 were also allowed the benefit of the extension if the promoter first applies for usual extension and pay extension fee, standard fee and penalty. “As normalcy did not return after last year, majority who sought extension are same developers, who were provided relief last year. Though, there are few defaulters from Bhiwadi who neither completed the project nor applied for extension,” said a source.

Earlier, after witnessing the second wave, the developers associations also demanded an extension from the authority. The developers reasoned, instalments have been deferred by the government for a very long period which has resulted in poor recovery and reduced revenue collection.

Many claimed there is also a cascading effect of the first wave, which has hampered recovery in the real estate sector in the last six months. “The vicious cycle of recession had impacted the economy adversely. This has resulted in reduction in demand, production, employment, income. Many allottees are facing difficulty in making payment of EMI. Also, there is reduction in buying capacity and frequent cancellations,” said a promoter.

Source: https://timesofindia.indiatimes.com/city/jaipur/350-developers-avail-reras-1-yr-deadline-extension-offer/articleshow/82987679.cms

The real estate sector has faced numerous challenges and RERA has been one of the resorts that brought in significant improvements in the real estate sector.

MahaRERA parts ethical from unethical developers: Rohitashwa Poddar

The real estate sector has faced numerous challenges and RERA has been one of the resorts that brought in significant improvements in the real estate sector. Now, to dilute the impact of the COVID pandemic on the sector, can RERA bring in more efficiency and transparency? Throwing light on this, Rohitashwa Poddar, MD, Poddar Housing and Development Ltd., addressed the National Housing Summit.

He said, ”Poddar Group is not known for real estate, however, we entered the industry to work for the Affordable Housing Scheme of the Government of India. Since the inception, we had followed the best practices but with the formation of MahaRERA made a gigantic difference in making the people understand the right developer.” As a consequence of the formation of MahaRERA platform, businesses have seen a positive rise, he added.

He expressed his gratitude towards MahaRERA saying, “I am thankful to MahaRERA for drawing a clear line between the ethical and non-ethical developers. This has not only helped the customers to buy better but has also been of great help to those who are clean. I hope this continues in the future as well. Also, I hope to see more performance-based matrices to be launched for helping people to buy the best.”

Calling RERA a pro-economy measure, Poddar said that before this came in existence there was a division of trust among the buyers. Therefore, the RERA is neither a pro-customer nor a pro-developer but a pro-economy measure. “It has made the entire system more transparent and accountable. Moreover, it helped in the growth of GDP and it will also help the real estate sector to have a significantly higher percentage of the GDP as we grow forward and become a more developed economy.”

He backed the words of Nayan A Shah, saying, “If we have RERA address the interests of all the stakeholder and hold all stakeholders responsible, I completely agree that we have to have regulatory authorities.” On this note, he requested the RERA authorities to consider the concern raised that is holding each stakeholder responsible. “In affordable housing, we work on very thin margins and delays in getting approvals makes the project costlier for the customer or our project become unviable to the degree that we cannot launch it”, added Poddar as he concludes his address.

Raising a request following the valediction of Rohitashwa Poddar’s address, Nayan A Shah raised a concern to Dr Vijay Satbir Singh that there are two legislations that govern the real estate sector in Maharashtra, Maharashtra Ownership of Flats (MOFA) and MahaRERA. “This causes confusion. We request you to kindly look into it that if MOFA can be scrapped so that there is only one legislation.”

Source: https://egov.eletsonline.com/2021/05/maharera-parts-ethical-from-unethical-developers-rohitashwa-poddar/

Five years after the enactment of the RERA the law much-needed has not only transformed the real estate sector but is also becoming the force it was meant to be.

Five years of RERA have transformed the realty sector

Five years after the enactment of the Real Estate Regulation Act (RERA), the law much-needed has not only transformed the real estate sector but is also becoming the force it was meant to be.

The law, which became a reality in the first week of May 2016, has acted as the biggest catalyst in giving a formal structure to the real estate sector in the country and has allowed the property buyers to get heard and address their concerns and complaints.

RERA has brought in the much required standardization in the industry, it is bringing more trust from all the stakeholders. For example, it has clearly defined what the carpet area means and how to calculate it. It has thus removed ambiguities involved in the measurement of the carpet area and reassuring the trust of the home buyers in the process.

It has also reassured the buyer that the money he/she has invested for the purchase of a home in an under-construction project would be utilized for the completion of that particular project. As per the RERA guidelines, builders must open an escrow account and deposit 70% of the money collected from buyers into it and withdraw money from the account only for buying raw material for that project only.

The provisions of the RERA require the builders to update on regular intervals about the construction status of the projects, which instills confidence among the buyers of property in the projects.

“As we look back at five years and how RERA has performed, I think it has been helpful in establishing mutual trust among the buyers and the builders. It has also brought in a lot of discipline among the builders who now have to give timely updates on construction to the authorities. In a way, RERA certification to any project makes it a branded product,” said Pradeep Aggarwal, founder & chairman, Signature Global Group; chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development.

Although RERA became a law after the Bill was passed by both houses of the Parliament and a notification issued by the central government, it was for the states to set up their own RERA Authorities. Some of the states were slow in setting up RERA authorities in the beginning but have now embraced the game-changing law. As many as 30 states/UTs have set up Real Estate Regulatory Authority and 28 of them have set up Real Estate Appellate Tribunal as mandated under the law as of April 2021.

“Property buyers are more inclined to buy RERA registered projects as the judgments and decisions taken by RERA over the years gives them confidence. The authority does not only ensure customers are satisfied but also safeguards builders’ interest. Developers also are at an advantageous position as they can procure project finance relatively easily if the project is registered with RERA,” said Prateek Mittal, executive director, Sushma Group.

Even the number of complaints taken up by the various state authorities has steadily risen over the last five years. Over 65,539 complaints have been solved by RERA across the country. This number was 48,556 until May last year. Some of the states like Uttar Pradesh were slightly slow to set up RERA Authority and take up a complaint of the buyers but now the state has topped in the number of complaints being duly addressed and then disposed-off.

“It is so heartening to note that rera has completed 5 years. It is a milestone initiative of the government that has brought much needed accountability and transparency in real estate. Serious and dedicated developers like us have benefitted from rera. But, the biggest winner has been the buyers who are now getting timely delivery and quality construction all across. I congratulate the Rera authorities on successful completion of 5 years,” said Manoj Gaur, CMD, Gaurs Group and VP – North, CREDAI National.

RERA makes it compulsory for the brokers and property agents also to register with the respective state authorities. Over 50,256 brokers have been registered across the country with various state RERA authorities.

“The brokers often from the most quintessential part of real estate deal, be it in the primary market or secondary market. Their registration under RERA has ensured that all stakeholders of the real estate industry are involved which is a good thing in the long run,” said Ankit Kansal, founder and MD, 360 Realtors.

Solving of complaints at the RERA level has also ensured that fewer cases go to courts, saving a lot of time and money for both buyers as well as builders.

“RERA Authorities are solving bulk of the buyers’ complaints and this ultimately translates to much less pressure on the judicial system, as these cases would have otherwise clogged the courts which are already overburdened,” said Kushagr Ansal, director, Ansal Housing and president, CREDAI – Haryana.

The RERA has brought in much needed accountability and thereby transparency in the real estate sector. This will enable the country’s property market to become a trillion-dollar industry in the coming decade, accounting for over 13 percent of the economy.

Source: https://www.constructionweekonline.in/business/17617-five-years-of-rera-have-transformed-the-realty-sector

Owing to the rising number of COVID-19 cases in the state, the UPRERA has deferred the option of physical hearing of complainants.

UP RERA defers physical hearing of cases till April-end

Owing to the rising number of COVID-19 cases in the state, the Uttar Pradesh Real Estate Regulatory Authority has deferred the option of physical hearing of complainants.

It has now proposed to start physical hearing of complaints from May 1, 2021.

“It is to be noted that UP RERA in its 59th meeting on March 19, presided over by its Chairman Rajiv Kumar, had decided to provide the opportunity of physical hearing to parties concerned on their request with effect from May 1, 2021 subject to strict compliance of Covid protocol as applicable,” said a release.

For the time being, the UP RERA will continue to hear cases virtually.

UP RERA has been hearing complaints through virtual mode under the e-courts system in order to maintain social distancing norms amid the novel coronavirus pandemic.

“Further decision about offering the option of physical hearing to parties will be taken in future depending on the situation of the pandemic and directions of Central and state governments in this regard,” said the UP RERA release.

Source: https://www.dailypioneer.com/2021/state-editions/up-rera-defers-physical-hearing-of-cases-till-april-end.html

The Bihar Real Estate Regulatory Authority has taken strong action against three private developers for violating RERA norms.

Bihar RERA penalises Green Vatika Homes, Arunendra Developers & Shiba Welcome

The Bihar Real Estate Regulatory Authority (BRERA) has taken strong action against three private developers for violating RERA norms, an official said on Tuesday.

The action has been taken after more than one dozen home buyers filed written complaints with the BRERA. The official said that the real estate companies — Green Vatika Homes Pvt Ltd, Arunendra Developers Pvt Ltd and Shiba Welcome Pvt Ltd – violated RERA guidelines.

Accordingly, action has been taken against them in the last one week.

“The home buyers have filed complaints against these builders and the violation was found during the hearing. Accordingly, we have frozen the bank accounts of directors of the companies,” the official said.

“Besides, we have also asked them to submit all financial transactions, investments and expenditures of the companies after the particular project launched in Bihar. Till that time, we have stopped them from selling residential units till the next order,” the official said.

Home buyers have filed complaints against Green Vatika Homes, for instance. The company has projects named VIP Residency, Pusp Vatika, Kamal Complex, Urmila Vatika and other projects in Patna and other districts.

“We have paid 80% to 90% of our total cost of the residential flats but our builder has not completed the construction accordingly. We strongly believe that the builder has three to four projects underway and it has invested our money in other projects,” said Ravindra Kumar Sinha, a home buyer.

Bihar RERA has frozen the bank accounts of Pankaj Kumar, Chandan Kumar and Upendra Mandal, directors of Arunendra builders. The regulatory body has also banned the sale of residential units of its projects at Phulwari Sarif, Danapur-1 enclave and other parts of Bihar.

The next hearing on Green Vatika Homes and Arunendra builders is scheduled for April 16.

Similarly, Bihar RERA has frozen the bank accounts of Khalid Rashid and Amina Rashid, the directors of Shiba Welcome builders. RERA has also banned sales of the project Rajeshwar Apartment.

The hearing of Shiba Welcome Builders is scheduled on May 10.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/bihar-rera-penalises-green-vatika-homes-arunendra-developers-shiba-welcome/82060175

Police booked two developers acting on a complaint of a homebuyer who has been duped on the pretext of getting the possession of his booked flat. Read the Rera update for more information.

Developers booked for cheating homebuyer and violating MahaRERA orders

SRA gives project back to developer booked for cheating buyer Vile Parle Police booked two developers acting on a complaint of a homebuyer who has been duped on the pretext of getting the possession of his booked flat. The complainant had given a demand draft of Rs 95 lakh to book the flat, but the developers have not handed over the flat to him. The MahaRERA orders stated that the developers should pay Rs 1 lakh per month for delaying possession. And, they are yet to pay a total of Rs 18 lakh as penalty.

According to the police, the complainant said, in a statement, that he had booked flat 1101 in a Vile Parle building and had paid Rs 95 lakhs as the booking amount. Even after repeated reminders to give the possession of the flat, the developers kept delaying it and the matter ended up in the MahaRERA court. The MahaRERA court had ordered the developers to pay a penalty of Rs 1 lakh to the complainant until the possession is given, which the developers allegedly failed to.

Acting on this information, the complainant approached the police and lodged a complaint of cheating, forgery and common intention against them. After valid points were observed in the complaint letter, a case was lodged against them on April 7 for violating the MahaRERA orders by not paying a total of Rs 18 lakh as penalty, as directed, for not giving the possession of the flat.

Source: https://www.freepressjournal.in/mumbai/mumbai-developers-booked-for-cheating-homebuyer-and-violating-maharera-orders