Jharkhand sees highest 3-year jump in RERA project registrations, UP just 22%

After more than five years since its implementation, RERA has made remarkable progress in addressing consumer complaints across different states and UTs.

Data available with the Ministry of Housing and Urban Affairs indicates that so far, 1,00,949 cases filed under the various State iterations of RERA have been disposed of by these authorities as of 8 October 2022. Of these, approx. 72% cases (72,979 complaints) were resolved in the last three years, which include the Covid-19 pandemic.

Taking the lead over previous torchbearer MahaRERA, Uttar Pradesh’s UP RERA saw as many as 40,559 cases disposed of so far – against a mere 11,596 cases in October 2019. Haryana comes a distant second with approx. 20,539 cases disposed of, against just 2,480 cases in the corresponding period of 2019. Still going strong but no longer in the pole position, MahaRERA has so far disposed of approx. 12,507 cases.

Commenting on the same, Anuj Puri, Chairman, ANAROCK Group, said, “Still nowhere close to saturation effect but showing ‘real‘ progress, the Real Estate (Regulation and Development) Act has been visibly fulfilling one of its key functions – resolving homebuyer grievances. As per official data from MoHUA, the respective RERA authorities of various state and UTs have addressed more than a lakh consumer complaints.”

“While this is impressive, it is also true that there remains a big question mark with regards to 100% resolution,” said Puri. “At the end of the day, RERA still lacks sufficient execution powers – a fact which the Supreme Court has also expressed apprehensions over. Meanwhile, the pandemic did not break the pace of project and real estate agent registrations over the last three years.”

Project & Agent Registrations

Amounting for an impressive 109% growth in last three years, approx. 94,513 projects have so far been registered under RERA to date, from approx. 45,307 on 8th of October 2019. The states with maximum project registrations are Maharashtra, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, Telangana and Tamil Nadu. Together, these states account for a significant 83% share with approx. 78,258 registered projects. Maharashtra still tops the list with approx. 38,229 project registrations.

While it leads in terms of disposal of cases, UP has seen the lowest growth of 22% in project registrations in the past three years. In October 2019, the state had approx. 2,710 registered projects while the currently number stands at approx. 3304 projects, indicating that the primary focus in UP has been on project completions rather than new launches.

Among the top 7 states, Jharkhand has seen the highest three-year growth of 855% in project registrations – from 103 in October 2019 to approx. 984 projects today. Tamil Nadu recorded a 828% jump in the period – in October 2019, the state had 1,154 projects registered under RERA; this has increased to 10,711 projects today.

Meanwhile, registration of real estate agents under RERA has risen by 95% in the last three years – from 35,699 on 8 October 2019 to approx. 69,766 on 8 October 2022. Maharashtra retains its lead with the maximum number of projects and agent registrations:

* As on 8th October 2022, Maharashtra saw 38,229 projects and 38,969 agents registered under MahaRERA

* In Tamil Nadu, 10,771 projects and 2,596 agents have been registered as of October 2022

* Gujarat has seen 10,030 projects and 1,953 agents registered to date

* In Karnataka, 6,313 projects and 3,590 agents are currently registered under RERA

* Telangana currently has 5,148 projects and 2,448 agents registered

* Madhya Pradesh has seen 4,523 projects and 1,287 agents registered.

* In Uttar Pradesh, 3,304 projects and 5,583 agents have been registered.

* Rajasthan, Chhattisgarh, and Bihar are witnessing increasing momentum with 2,096, 1,562 and 1,470 projects registered respectively.

Source: https://www.financialexpress.com/money/jharkhand-sees-highest-3-year-jump-in-rera-project-registrations-up-just-22/2725240/

UP-Rera approves 36 new realty projects in September

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) received 36 applications to register new residential and commercial realty projects in the month of September. The authority said that it is the highest number of applications received in a month since the formation of UP RERA in April 2017. It received 125 applications to register new projects in the first half of 2022.

According to the rules, a developer is required to register any new project with the authority and obtain a registration number before beginning construction work. RERA registers a project only if the developer gets the project map sanctioned by local authorities.

A number of these new realty projects are coming up in cities outside the national capital region. Earlier, 70% of new projects were from Noida, Greater Noida, Ghaziabad and Meerut, and the remaining 30% were from non-NCR cities like Lucknow, Kanpur, and Agra, RERA informed. “In September, 70% of new applications were from non-NCR towns and 30% from NCR towns,” Rajive Kumar chairman, UP RERA, said.

Out of 36 applications received in September this year, 24 were from non-NCR towns such as Lucknow, Agra, and Muradabad and the remaining from NCR towns including Noida, Meerut and Ghaziabad. The total cost of these residential and commercial projects is ₹3,648.35 crore and RERA has sanctioned 6931 residential and 1185 commercial units.

Source: https://www.hindustantimes.com/cities/noida-news/uprera-approves-36-new-realty-projects-in-september-101665772550059.html

RERA Declares 139 Projects As Lapsed, Declare One Month Deadline

As per RERA registration, 139 projects in the Pune district, which were not completed within the stipulated time and did not get an extension, have been declared as lapsed projects by Maharera.

Maharera will issue show-cause notices to these projects. As per Sections 7 and 8 of the RERA Act, the projects can be taken up through the Consumer Co-operative Housing Society. Developers have been given a deadline of one month.

The builders had promised to complete the project in 2022 but did not complete it. RERA registration is mandatory for developers and their projects. As per this registration, the developers must complete the project within the time given by Maharera to complete the project. Also, there is a provision for strict action against the developers who violate this rule.

Projects are extended if the developer submits 51 percent customer consent. But even for that, the developers are not coming forward. It hits the customers hard. So now Maharera has decided to take action against such developers. These developers have been given one month to make their case and explain why the project has been stalled. He also said that action will be taken as per Sections 7 and 8 of RERA against the developers who do not come forward or give a satisfactory reply within this period.

You can check the details here: https://maharera.mahaonline.gov.in/Site/1128/Lapsed-Projects

Source: https://www.punekarnews.in/rera-declares-139-projects-as-lapsed-declare-one-month-deadline/

MahaRERA suspends 52 builders from KDMC

The Maha Real Estate Regulatory Authority (RERA) suspended registrations of 52 builders from Kalyan–Dombivli Municipal Corporation (KDMC) limits on Monday. The list has been uploaded on the civic body’s official website.

This move by RERA comes after KDMC had registered an FIR against 27 developers for forgery and cheating last week. FIRs against 39 others are underway.

The civic body has said that the builders had produced fake documents to acquire the RERA certificate.

“We have uploaded the list of suspended builders from KDMC on our website,” said Vasant Prabhu, secretary, RERA.

All real estate projects registered with RERA are provided with a certificate having a unique registration number. It has all the information about the property. A developer, builder or a property agent cannot advertise, book or sell real estate without obtaining the RERA certificate.

The KDMC has informed that these 27 developers had forged the required documents to procure the RERA certificate.

This action by the civic body comes after a city-based architect and social activist, Sandeep Patil, 43, filed a Public Interest Litigation (PIL) in the Bombay High Court in 2021. He drew the court’s attention towards the builders who made fraudulent documents for the purpose of registration of flats/ shops in illegal buildings because of which innocent people were cheated throughout Maharashtra.

Patil had raised the matter of 66 builders and demanded action.

“While I have raised the name of 66 builders only 52 have been suspended by RERA. I checked the list online and found all the builders are those mentioned by me in my complaints. What about the remaining 14 builders? Also, suspension will not help as it is temporary – a proper legal case should be done in this matter. I will follow up with this too,” said Patil.

“The Dombivli police is working on registering cases against 39 more builders shortly,” added Patil.

The cases registered at the police station are under Sections 420, 465, 467, 468 and 471 of the Indian Penal Code.

Disha Sawant, assistant town planner KDMC, said, “This suspension is done by the RERA so we cannot comment on it. Meanwhile, KDMC is carrying out its own investigation.”

Source: https://www.hindustantimes.com/cities/mumbai-news/rera-suspends-52-builders-from-kdmc-101664827518793.html

UP RERA imposes penalty against 13 developers

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has imposed penalty of Rs 1 crore 39 lakhs against 13 promoters after reviewing the status of compliance of its orders by the promoters.

The authority is making constant efforts to ensure enforcement of its orders and provide speedy justice to the aggrieved allottees. The action of penalty against the guilty promoters is an important step towards compelling them to comply with the orders of the authority.

The Authority, using its powers under section 38/63 of the RERA Act which empowers it to penalise the non-compliant promoters with up to 5% of the cost of the project, decided to impose penalty against

SRB Promoters Pvt. Ltd., Gardenia India Promoters Pvt. Ltd, AIMS Golf Town Developers Pvt. Ltd, MV Infrastructures and Housing Pvt. Ltd, Elegant Infracon Pvt. Ltd, Redicon Infrastructures Pvt. Ltd, Decent Buildwell Pvt. Ltd, Uttam Steel and Associate (Consortium), JSS Buildcon Pvt. Ltd, Earthcon Construction Pvt. Ltd, Opulent Infradevelopers Pvt. Ltd, Aura Buildwell Pvt. Ltd and Green Bay Infrastructures Pvt. Ltd.

The authority further directed the promoters to submit the compliance report of its orders within 15 days and deposit the amount of penalty within 30 days, otherwise the amount of penalty shall be recovered as arrears of land revenue.

“Uttar Pradesh RERA is continuously taking strict decisions against the insensitive promoters for protection of the interests of the home buyers. The Authority is fully committed to protect the interests of home buyers and, for this, the Authority is taking all possible steps to regulate the real estate sector of the state according to the RERA Act,” said Rajive Kumar, Chairman, UP RERA.

Source: https://economictimes.indiatimes.com/industry/services/property-/-cstruction/up-rera-imposes-penalty-against-13-developers/articleshow/94398656.cms

Over 50% projects tagged ‘ongoing’ since MahaRERA, still await completion

Over 50 percent of the total projects registered as ‘ongoing’ with the Maharashtra Real Estate Regulatory Authority (MahaRERA) when the regulator came into being in 2017 are yet to be completed, according to data accessed by Moneycontrol under the Right To Information (RTI) Act.

About 13,246 projects were listed as ‘ongoing’ in 2017, of which 6,557, or about 49.5 percent, have been completed.

A total 36,461 projects, including the ‘ongoing’ ones, have been registered since the inception of MahaRERA, of which 9,637 have been completed.

About 3,080 completed projects are new projects with the rest being ‘ongoing’ projects.

The data reveals that out of the total completed 9,637 projects, about 1,897, or 20 percent, were completed only after getting an extension. These include 1,655 ongoing projects and 242 new projects.

Maharashtra was one of the first states where rules and all sections of the Real Estate (Regulation & Development) Act, 2016, were notified and came into force on May 1, 2017.

What is an ongoing project?

When the RERA Act came into effect, the MahaRERA had asked all new and ongoing projects to register without which they could not market, sell or get approvals.

All ongoing as well as under-construction projects which had not received completion certificates had to get registered with the regulatory authorities within three months, i.e, July 31, 2017.

Further, projects with a plot size of a minimum 500 square metres or eight apartments also came under the purview of the Act. MahaRERA had also levied a penalty on developers of ongoing projects who did not adhere to the deadline set for registering the ongoing projects.

What is a new project?

A new project that is starting afresh and has come into existence after the MahaRERA became effective on May 01, 2017. All such projects launched after RERA Act came into effect have to register their projects with MahaRERA in order to market or sell units in them.

As per the data, about 63 percent or 23,215 projects out of the total 36,461 registered, as of June 2022, are new projects.

What’s the solution for the completion of ongoing projects?

Gautam Chatterjee, retired IAS officer and first chairman of MahaRERA, said, “We got these 13,000 ongoing projects registered within a period of two to three months after MahaRERA got into action from May 2017. The whole point is these are the legacy projects that are stuck due to several problems for whatever reasons they might be. Around 4,500 projects that are lapsed but we need to look at around 2,000 odd projects where the buyer’s money is involved and try getting them back on track.”

Chatterjee added, “We have to make efforts to ensure that these projects are completed by imposing sections 7 and 8 of RERA Act that allow taking over of the projects that are stuck. I know that the MahaRERA has recently launched a vertical for stalled and lapsed projects where they need to be analysed and measures should be taken to ensure they are completed.”

Chatterjee said that one of the few measures could be involving all the stakeholders, including financial institutions, in taking the project ahead apart from the association of allottees when they take over the project. But this would require amendments in the Act, and they should be done after carefully analysing the projects that have lapsed or are stalled.

A senior MahaRERA official not wishing to be named said, “It is true that the majority of the stalled projects are those that were registered as ongoing projects. We are in the process of appointing investigators who will go on projects where we suspect that a significant amount of the money is spent, but no groundwork is evident. The plan is to get things moving in the coming months. Out of the total lapsed projects, we are aiming and focusing on 900 odd projects where the pushing by the regulator might work in favour of the buyers.”

Lapsed projects vertical

MahaRERA chairman Ajoy Mehta on June 22 announced the formation of a dedicated vertical on lapsed or stalled real estate projects to get these projects moving by either the existing developer taking it ahead or buyers taking over the project or by roping in a new developer.

“We have verticals for grievances, complaints, registration, adjudication, and administration. Similarly, this vertical will be for stalled projects. If we have to look essentially at stalled projects, out of 4,500 stalled projects, 1,500 do not have bookings. Out of the 3 lakh apartments that are stuck, 1.28 lakh do not have bookings. My focus is on stalled projects where there is money from homebuyers involved. The approximate worth of stuck projects is expected to be Rs 78,000 crore. We will tackle money from banks and financial institutions at a later stage,” Mehta was quoted as saying.

When is a real estate project declared lapsed?

Every project registered by a developer with MahaRERA is given three to four years for completion, which is considered a reasonable time, followed by the issuance of a registration number for the project.

A search on the MahaRERA website using this number will throw up all details relating to the project. The registration number is to be published by the developer in every advertisement or promotion activity related to the project.

However, a project is termed as ‘lapsed’ when the timeline given for completion is not met, and the developer has not applied for an extension. Once the registration of the project is declared ‘lapsed’, the developer cannot advertise, market, book, sell or offer to sell, or invite persons to invest in these projects. Such projects cannot be registered by the registrar of the revenue department.

Source: https://www.moneycontrol.com/news/business/real-estate/mc-exclusive-over-50-projects-tagged-ongoing-since-maharera-still-await-completion-9206841.html

Odisha notifies amended real estate regulation rules

Complying with the assurance made to Orissa High Court, the State government on Monday notified the Odisha Real Estate (Regulation and Development) Amendment Rules 2022. The new rules have been notified by the Housing and Urban Development department after suitable modifications to the existing Odisha Real Estate (Regulation and Development) Rules 2017.

Officials said the gazette notification of the amended rules intends to ensure smooth implementation of the RERA Act for the government and also to make its compliance easier for all stakeholders including promoters and buyers.

As per the amendments, the promoter will have to abide by the time schedule for completing the project as disclosed at the time of registration with the authority. Any imposition or increase of development charges after the expiry of the deadline of a project will not be charged from the allottees.

Besides, the allottees will also have the right to visit the site to assess the extent of development of the project and his/her apartment or plot. The amendment rules also clarify that the promoter will hand over the common areas of the project to the association of allottees after duly obtaining the occupancy certificate from the competent authority as provided in the Act.

In the absence of any local law, the promoter will hand over the necessary documents and plans including common areas to the association of allottees or the competent authority, as the case may be, within 30 days after obtaining the occupancy certificate. Besides, a number of other modifications have been made in the rules to streamline the agreement for sale of houses and make the rules compliant with the Real Estate (Regulation and Development) Act, 2016.

RERA activists who welcomed the amended rules said attempts have been made to bring clarity on the transfer of common areas to the association and give due importance to the occupancy certificate. They, however, suggested that the power to resolve disputes in the agreement should be brought before the RERA Authority and not adjudicating authority as mentioned in the rules.

The State government in the last week of August had assured the High Court to bring the amended ORERA Rules without four weeks.The notification of the amended rules assumes significance in view of the ban the court had imposed on the registration of sale deeds relating to apartments and flats without conforming to provisions of the RERA Act.

Source: https://www.newindianexpress.com/states/odisha/2022/sep/13/odisha-notifies-amended-real-estate-regulation-rules-2497717.html

MahaRERA orders developer to deduct 2%, not 10%, of the price of apartment for cancelled booking

The Maharashtra Real Estate Regulatory Authority (MahaRERA), in a recent order, directed the developer of Kalpataru Avana, a luxury real estate project in central Mumbai, to deduct 2 percent of the total price of flats, and not 10 percent, for cancellation of booking by homebuyers.

The ratio mentioned in the letter of intent (LOI) signed between homebuyers and Kalpataru Limited, the developer, was 10 percent. MahaRERA said the proportion mentioned in one of the clauses of the LOI appears to be unreasonable.

MahaRERA received six separate complaints from individuals and a company in August 2020, seeking directions to the developer to refund the entire amount paid by them along with interest and compensation under section 18 of the Real Estate (Regulation & Development) Act, 2016.

The complainants said they had not signed a sale and purchase agreement, but an LOI in 2015 which was effectively an allotment letter under settled case law.

Although no date of possession was mentioned, a period of three years had been cited as a reasonable date for completion of projects in previous rulings, the homebuyers said.

They said they had informed the developer they wished to withdraw from the project and requested a refund along with interest and compensation in July 2020. The developer got the occupation certificate for the flats in October 2021.

In response, Kalpataru filed six complaints in February 2021, seeking directions from MahaRERA to the buyers to execute an agreement for sale and purchase under section 13 of RERA and also to pay the remaining amount due to the developer with interest.

MahaRERA did not find merit in the complaints, saying the buyers had already decided to withdraw from this project and approached the authority for cancellation of their booking, alleging violation of various provisions of RERA.

MahaRERA said the developer had filed complaints after the buyers had filed theirs. In such a scenario, the buyers cannot be forced to remain in the project and execute the agreements, it ruled.

“Clause no. 20 of the said LOIs mentions the forfeiture of 10% of the total consideration value of the said flats. However, … the said booking application form provides that upon cancellation of the said flats, the promoter is entitled to forfeit 2% of the total consideration of the said flats,” MAHARera said.

It added: “Such forfeiture clause as mentioned in the LOIs appears to be unreasonable, after commencement of RERA and even it does not seem to be in consonance with the recent MahaRERA Order No. 35 in August 2022, issued with respect to the prescribed format of allotment letter, which permits the promoter to forfeit 2% amount.”

In August 2022, MahaRERA issued an order prescribing the number of days and amount that can be deducted in case of cancellation of a booking. According to the order, no amount can be deducted for cancellation within 15 days of booking, 1 percent of the cost of the unit for cancellation between 16 days and 30 days, 1.5 percent between 31 days and 60 days and 2 percent after 61 days.

An email query sent to Kalpataru elicited no response.

“This ruling will be of assistance to allottees if a higher rate of deduction for forfeiting the consideration amount is mentioned in the allotment letter,” advocate Trupti Daphtary said.

Advocate Nirav Jani, a partner at Vigil Juris, said: “MahaRERA has further legislated contractual terms between the parties wherein the allottee (home buyer) will only be penalised up to 2 percent of the consideration in case of default by allottee as well. The ruling rewrites the contract previously executed between the parties. This may be an impediment for parties to enforce clauses which have been agreed between the parties and arrive at a commercial understanding.”

Source: https://www.moneycontrol.com/news/business/real-estate/maharera-orders-developer-to-deduct-2-not-10-of-the-price-of-apartment-for-cancelled-booking-9138651.html

Pre-Rera era Supertech towers demolished, but have things changed under the new regime?

If media reports are to be believed, after the Real Estate Regulation Act (RERA) came into being, all the government officials have become careful in sanctioning building plans, builders are now fearful of the law and the judiciary is trusted as more proactive than reactive.

A fellow panelist at a TV debate emphasised that Supertech twin towers violations are pre-Rera realities. The market has changed a lot in the post-Rera world. Really? I wonder where. Are we talking about some other part of the world?

To be sure, Supertech demolition is not the first such landmark judgment that has been shaping the industry narrative. In 2014, the Competition Commission of India had slapped a Rs 630 crore fine on DLF. However, it is not about one or two defaulters but the ecosystem that supports perpetrators and definitely not the victim – the homebuyers. The C-SAT score of Indian real estate (as per Track2Realty survey) slipped from 20 (out of 100) in 2011, to 18.

All the reforms like RERA, GST, Benami Transactions and demonetisation, etc are reforms only on paper. Nothing has changed on the ground for the hapless homebuyers.

Policy interventions have only made the builders smarter in dodging the bullet. For example, one of the builders in Greater Noida West is forcing buyers to sign an advance consent that the builder is free to make any future changes in the FAR and layout. Any resistance by the homebuyers is silenced with the builder’s wrath and the two-third (needed to vet it) succumb before the mighty builder. One aggrieved homebuyer who approached the consumer commission against the unfair contract is running from pillar to post for speedy justice.

Another builder I know threatens the buyers that if they dare approach Rera against any delay or default, he will make life miserable by delaying the possession of dream homes for years with multiple counter litigations. Salaried homebuyers burdened with both rent and the EMIs can’t challenge the builder in lengthy and costly litigation. This has been a question that even the Supreme Court pointed out in its judgment against Supertech Twin Towers.

I met a harassed homebuyer who wanted to sell his under-construction apartment due to a health emergency at home. The builder refused transfer and said that he could buy back only at the same rate at which he had sold the unit four years back. So all the appreciation benefits go to the builder but the interest burden is the liability of the buyer. The exploitation doesn’t end here. Once the apartment was bought back, the buyer with a critical health emergency at home was asked to wait for the refund till the builder sells off the same unit to someone else. You are trapped in the builder’s net!

You buy a toothpaste for Rs 50 and can criticise the brand on social media if you did not like it. But you can’t criticise the builder who sold the house worth at least Rs 50 lakh with your lifetime earnings. If you do, the builder sends a statement “our legal team is looking into your issue; it is a case of defamation”. One builder has it in his Builder Buyer Agreement that anything not liked by the buyers has to be settled through an arbitrator and the buyer ceases to have any right to amplify the issue on social media. Who will be the arbitrator if the project is delayed or falls short of the buyers’ expectations? It will be appointed by the company (builder) only.

So, is the industry narrative that the landmark judgment would help reform the murky world of Indian real estate correct?

I continue to wonder when and where the wave of reforms swept the business of real estate in this part of the world. A homebuyer is trapped in the builder’s net the moment he pays the token amount. Thereon, he has no choice but to succumb to the builder’s wishes.

Source: https://www.moneycontrol.com/news/business/real-estate/pre-rera-era-supertech-towers-demolished-but-have-things-changed-under-the-new-regime-9101321.html

Homebuyers write to Mamata to implement RERA within 30 days

An association representing homebuyers has written to Bengal chief minister Mamata Banerjee urging her to take necessary steps to make real estate law RERAfunctional in the state within one month.

The Forum For People’s Collective Efforts (FPCE), an umbrella body of homebuyers, has expressed concern over real estate law RERA still being non-functional in Bengal, leaving buyers at the mercy of the builders.

FPCE president Abhay Upadhyay, who is also a member of central advisory committee, RERA, wrote a letter on August 16 to the chief minister over the long wait for the implementation of The Real Estate (Regulation and Development) Act, 2016 (RERA) in Bengal.

In May last year, the Supreme Court had struck down the Bengal government’s law WBHIRA for regulating the real estate sector, saying it was “unconstitutional”. Upadhyay’s letter was also marked to Supreme Court justice D.Y. Chandrachud, who had passed the judgment, and union housing and urban affairs minister Hardeep SinghPuri.

After the top court setback, the Bengal housing department on July 26, 2021, notified the rules laying down the legal framework for setting up the Real Estate Regulatory Authority.

However, it is yet to become functional for the want of a chairman and members. Moreover, the formation of the Appellate Tribunal; creation of web pages; and setting up of other infrastructure needed for the early enforcement of RERA has also not been done yet. “I am confident that once the matter is brought to the notice of the chief minister, things will fall in place. The state has done everything to comply with the SC directive. Only the operationalisation of the Authority and Appellate are pending,” Upadhyay said this morning. According to RERA rules, the chairperson and other members of the Authority shall be appointed by the appropriate (state) government.

Source: https://www.telegraphindia.com/business/homebuyers-write-to-mamata-banerjee-to-implement-real-estate-law-rera-in-bengal/cid/1881590