Soon, West Bengal Real Estate Projects Will Be Registered with RERA

West Bengal’s newly established property regulator anticipates that all existing projects in the state would be registered under the Real Estate (Regulation & Development) Act, 2016 within three months, relieving buyer worries about completion timelines and quality.

Not-yet-completed projects promoted, advertised, and sold without Real Estate Regulatory Authority (Rera) licences are among those required registration with the West Bengal Rera.

The state regulatory chapter commenced operations around 18 months after the Supreme Court invalidated the state’s own law, the West Bengal Housing Industry Regulation Act of 2017. (WBHIRA). In February of 2014, the Supreme Court ordered the state to immediately adopt Rera.

“According to the guidelines set out by the WBRera authorities, within three months after the creation of the Rera authority in the state, all projects in the state that were previously promoted without licence and have yet to be finished must be registered.

2022 homeowners grouped under the name of the Forum for People’s Collective Efforts (FPCE) wrote to the chief minister in August, requesting that he intervene and deliver the required directives to make Rera and the Real Estate Appellate Tribunal operative under the central Act.

It had highlighted concerns around unregistered launches, extra money collecting, and “diversion.”

It is a positive beginning and will inspire trust in homebuyers. However, the web site is not yet operational, and a method for filing complaints online will assist homebuyers in the future, according to a worried individual.

Source: https://www.ghar.tv/blog/article_soon-west-bengal-real-estate-projects-will-be-registered-with-rera_659.html

Haryana RERA penalises five builders in Gurugram for delayed delivery

The Gurugram bench of the Haryana real estate regulatory authority (HRERA) has imposed penalties of Rs 25 lakh each on five builders after they failed to deliver their housing units to buyers on time. The regulator, however, allowed the realtors’ RERA registration certificates to remain in force with new timelines for completion of their projects.

As per the official statement, Identity Buildtech Private Limited has been fined for not completing its project Ansal Highland Park at Sector 103 within the declared timeline of June 2022. In this case, the authority has allowed the RERA registration to be in force till May 2024.

Similarly, a penalty of Rs 25 lakh has been imposed on BPTP Limited for not completing its project Park Terra at Sector 37-D, Gurugram. The deadline for this project, which was April 2022 earlier, has been extended till April 24.

Another developer Advance India Projects Limited has been penalised for its failure to complete the construction of Zen Residences -1 group housing project at Sector 70-A, Gurugram, the statement said.

Also, a penalty of Rs 25 lakh has been imposed on KLJ Realtech Private Limited for not completing the construction of its commercial project KLJ Square at Sector 83, Gurugram within the declared timeline of June 2021.

While allowing the RERA registration to remain in force for Spaze Towers Private Limited for its project Ishan Singh Commercial at Sector 78, Gurugraam, till December 2025, the authority has imposed a penalty of Rs 25 lakh on the realtor. The project was to be completed by 2020-end, it added.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/haryana-rera-penalises-five-builders-in-gurugram-for-delayed-delivery/96442129

H-Rera fines developer ₹2.5 crore for selling plots in unregistered project

The Gurugram bench of the Haryana Real Estate Regulatory Authority (H-Rera) on Wednesday said it has imposed a penalty of ₹2.5 crore on Brahma City Private Limited, a real estate promoter, for violating provisions of the real estate (regulation and development) Act of 2016.

H-Rera observed that the developer sold the plots without registration of project in violation of Section 3 of the Act 2016, for which penal proceedings were begun by the authority. It also observed that the promoter made the conveyance deeds of the plots in the unregistered areas of the project on different dates.

While examining the documents during a hearing on November 21, the authority observed that the promoter sold as many as 219 plots without getting the project registered with H-Rera, a serious offence of the Act, 2016.

“For violating the provisions of Rera, the authority has decided to impose a penalty of ₹2.50 crore on the promoter for not applying for registration of its ongoing project within time allowed and allowing sale of plots in violation of the provisions,” said the H-Rera order of December 9.

A statement released by the authority on Wednesday said the order includes a warning to the promoter not to violate the provisions of the Act, directing the promoter to deposit the penalty within one month of the issuing of notice.

“In case the promoter fails to deposit the penalty as imposed by the authority, it will be recovered as arrears of land revenue and further proceedings will be initiated against the promoter under Section 63 of the Rera Act, 2016,” said the order.

Source: https://www.hindustantimes.com/cities/gurugram-news/hrera-fines-developer-2-5-crore-for-selling-plots-in-unregistered-project-101671041405612.html

Orissa HC seeks clarification on flats’ registration

The Inspector General of Registration (IGR), Odisha on Wednesday clarified before the Orissa High Court that the restrictions imposed on registration of apartments will not be applicable to projects which had received completion certificates from competent authority prior to May 1, 2017, the date of commencement of the Real Estate Regulatory Authority (RERA) Act 2016.

IGR had on July 14 issued a public notice stating that the restrictions will not be imposed on any project ‘completed’ before implementation of RERA Act 2016. But the court had asked the IGR to properly clarify the word ‘completed’ as it can lead to ambiguity. IGR Jyotiprakash Das gave the clarification in an affidavit.

Taking note of it, the division bench of Chief Justice S Muralidhar and Justice MS Raman directed the IGR to notify the clarification again promptly as a ‘corrigendum’ and give wide publicity so that the ambiguity attached to the word ‘completed’ in the public notice issued on July 14, 2022 is dispelled.

The court was hearing a PIL filed by a Bhubaneswar-based apartment owner Bimalendu Pradhan challenging the validity of the Odisha Apartment Ownership (Amendment) Rules 2021 on the ground that it is contrary to provisions of the RERA Act, 2016. Advocate Mohit Agarwal argued on behalf of the petitioner. In an interim order on May 12 the court had directed the IGR to strictly ensure that the sale deeds registered hereafter abide by the RERA Act and rules thereunder.

Source: https://www.newindianexpress.com/states/odisha/2022/dec/08/orissa-hc-seeks-clarification-on-flats-registration-2526160.html

Haryana RERA asks developers to seek upgradation in RERA Act

Haryana RERA Chairman KK Khandelwal called upon real estate developers and builders to come together to seek modifications and upgradation in the real estate act so that it’s loopholes, if any, get rectified and both industry leaders and homebuyers stand to gain.

Khandelwal was addressing the day-long NAREDCO Haryana Real Estate Summit 2022 & Buyer-Seller Interface held on November 29 at Gurugram.

The Summit was organized by National Real Estate Development Council (NAREDCO), an apex real estate body that works under the Ministry of Housing & Urban Affairs.

While addressing the queries of developers, Khandelwal said that the current RERA act have a few loopholes that have existed for the last five years.

“The RERA Act ensures transparency and establishes faith of the homebuyers in the industry. We are for completion of projects and believe that loopholes, if there are any, should be addressed,” said Khandelwal.

He asked industry leaders to exert their influence under the banner of NAREDCO (National Real Estate Development Council) to the right quarters of the government so that necessary changes are effected in RERA and both buyers and sellers have no problems with it.

“I have been raising the issue of lacunae in the RERA Act for the last couple of years to inspire the industry for necessary corrections during various interfaces with little success, because industry leaders did not follow up the issue with policy makers. That is why changes in the act have not yet happened,” said Khandelwal.

He stressed that the NAREDCO should form an expert and core groups and study the Act in an objective manner and find out what is correct and incorrect in the legislation.

They should then submit recommendations to the government so that corrective measures are initiated.

Among others who were present in the summit included Ranjit Singh, Power Minister, Government of Haryana, Rajan Bandelkar, President NAREDCO and Niranjan Hiranandani Vice Chairman NAREDCO.

Haryana’s Power Minister Ranjit Singh said that the government will try its best to solve the problems of power sector for industry and other developers so that the economic development of the state does not suffer.

“A cabinet meeting would be held in the first week of December, in which permission will be taken to address the issue of power problem in Haryana. A majority of power-related problems would be sorted out to the best of the availability of the power department of the state,” said the minister.

The minister reassured the real estate developers and builders to organise an interface with the government officials of the power sector and apprise them of their problems for quick redressal.

In a statement released after the summit, Parveen Jain, Chairman, NAREDCO said that the goal is to maximise the effectiveness of existing policies and the RERA Act.

“The brainstorming sessions held at the summit surely provide the sector with a road map for the anticipated growth as all policymakers, industry executives, and experts have joined this platform to identify solutions to existing issues and compliances in light of the evolving regulatory landscape,” Jain said.

Source: https://www.moneycontrol.com/news/business/haryana-rera-asks-developers-to-seek-upgradation-in-rera-act-9622491.html

HC seeks MahaRERA reply on 1.5 yr delay in hearing complaint

The Bombay high court has sought a reply from Maharashtra Real Estate Regulatory Authority (MahaRERA) regarding a homebuyer’s plea that the housing regulator has not taken up her complaint for hearing for the last one and half years.

Homebuyer Geeta Bhavesh Bhanushali had filed a writ petition in the high court after her complaint was not taken up by MahaRERA for hearing.

Lodha and Lodha Advocates, appearing for the petitioner, contended that their client’s grievance was that MahaRERA had not scheduled a hearing of her complaint for the last one and half years.

A bench comprising Justices SV Gangapurwala and SG Dige directed assistant government pleader Uma Palsuledesai, who appeared for the state, to take instructions from MahaRERA and inform the court on the status of the petitioner’s complaint and cite the reasons why it has not been listed for hearing. The court scheduled the next hearing on December 12.

Bhanushali, her husband Bhavesh, and father-in-law Kalyanji Bhanushali are residents of flat no 903 in the B wing of Tirumala Habitat project in Mulund West. They had booked the flat in June 2011 by paying ₹1.12 crore including taxes. Though the agreement for sale promised possession on or before September 30, 2014, the possession was delivered only in September 2019 after a delay of five years, the complainant alleged.

The complainant also alleged that she was shocked when the family received the first property tax bill on November 16, 2019 from the Municipal Corporation it showed flat nos 903 and 904 approved as a single flat. She had approached MahaRERA with a complaint seeking interest on delayed possession and prayers for sub-division of the flat among other grievances.

Over 6000 complaints pending with MahaRERA

In a related development, social activist and advocate Godfrey Pimenta, who represents homebuyers before MahaRERA, wrote to chief minister Eknath Shinde that homebuyers of stalled projects were complaining that hearings before MahaRERA are “unduly” delayed, in some cases, for close to two years.

The letter said there were 38,750 ongoing real estate projects registered with MahaRERA and a total of 19,290 complaints filed with the regulator. Out of these,12,971 complaints were disposed of and 6,319 complaints were yet to be heard.

The letter submitted through Mumbai Suburban Collector Nidhi Choudhari to the CM pointed out that a recent JLL report had estimated that there were 99,000 stalled residential units in MMR, and delays in hearing cases pertaining to Section 7 and 8 of RERA which seek deregistration of a delinquent developer and appointment of a new developer further compound the misery of homebuyers.

Source: https://www.hindustantimes.com/cities/mumbai-news/hc-seeks-maharera-reply-on-1-5-yr-delay-in-hearing-complaint-101669230316095.html

Buyers can seek refund if builder skips possession dates: Tribunal

Setting aside an order by the MahaRERA chairperson, the Maharashtra Real Estate Appellate Tribunal (MREAT) observed that the developers continued to skip mentioning the date of possession of flats in their allotment letters given to home buyers even two years after RERA came into place. The tribunal has asked MahaRERA to view this seriously.

“This requirement, envisaged by RERA, is flouted more often than observed which needs to be viewed seriously by the authority,” observed a tribunal bench, comprising Shriram Jagtap, member judicial, and SS Sandhu, member administrative, in a November 11 order. The bench also slammed the practice of developers not sharing a draft Agreement For Sale (AFS) containing the terms and conditions prior to asking for payment for execution of the agreement.

The tribunal also took strong exception to the Authority’s “over emphasis” on the view that home buyers need to seek reliefs under Section 18 on or before the Occupancy Certificate (OC) is obtained, and that they were not entitled to refunds under the section if they file the complaint after the OC is obtained by the promoter. MahaRERA had backed the promoter’s contention that irrespective of the delay in granting possession, once the OC is obtained or possession offered, Section 18 would not apply.

In this case, the home buyers had filed the complaint on March 17, 2021, after the promoter had obtained the OC by February 9, 2021.

The observations came on appeal filed by senior citizens, Bijon and Shanta Talukdar, who had booked a flat in Eirene project by promoter Dhruva Woolen Mills Pvt Ltd. Booked under the 9:91 scheme, the couple had paid ₹9.44 lakh and the remaining 91 per cent was payable at the time of possession.

Though the email communication between the parties indicated June 2020 as the date of possession, it was not specified in the letter of allotment (LOA) issued by the promoter on June 19, 2019 – on the MahaRERA portal, the promoter mentioned the possession date as December 2019, with a grace period of six months. Thereafter, the promoter could not hand over possession by June 2020, thanks to the lockdown; and in the intervening period MahaRERA allowed extension of possession date till December 2020.

Meanwhile, the home buyers served notice on the promoter on August 24, 2020, to hand over possession within 15 days, failing which their money be refunded with interest. They reiterated the demand in another legal notice dated January 21, 2021. Thereafter, the promoter informed the couple that OC had been received on February 9, 2021, and asked them to take possession by paying the balance 91 per cent amount as agreed.

As the demand for refund with interest was declined, the home buyers had filed a complaint seeking refund of the amount under Section 18 for delay in possession. MahaRERA had dismissed the complaint after agreeing with the promoter’s contention. Aggrieved by the order, the home buyers had challenged the September 7, 2021, order before MREAT.

The tribunal held that the promoter had replied to the legal notice only on February 26 (after the OC was obtained on February 9) declining to refund their investment, and therefore, there was no undue delay in homebuyers approaching MahaRERA seeking relief under Section 18.

The orders by MREAT can be challenged by aggrieved parties before the Bombay High Court in second appeal on a point of law.

Source: https://www.hindustantimes.com/cities/mumbai-news/buyers-can-seek-refund-if-builder-skips-possession-dates-tribunal-101668538140352.html

Haryana real estate regulator asks Vatika to refund homebuyers’ money

The Gurugram bench of the Haryana real estate regulatory authority (HRERA) has ordered Vatika Limited to refund money with interest to all 28 allottees of its housing project which the developer has abandoned.

The HRERA court had issued the order on October 28 while hearing the petition related to Vatika Turning Point, a residential project in Sector 88B.

The court said that the promoter Vatika will also have to pay the loan amount to respective banks in case an allottee has borrowed from bank.

“Since the project has been abandoned by the promoter, the allottees are entitled for the refund of the amount paid by them to the promoter against the allotment of their units with interest at the prescribed rate of 10.25 per cent per annum from the date of each payment till the date of actual realisation within the timelines as prescribed under the rule 16 of the Rules 2017,” said the RERA court.

The court said, “However, while depositing sale consideration of the allotted units, some of the allottees raised loans from the different financial institutions and the same was paid to the promoter.

“While refunding the amount deposited by the allottees who raised loans against the allotted units, the promoter would be liable to pay that amount with interest up to date to those financial institutions and remainder, if any, would be paid back to the allottees.” Vatika Limited had obtained licence from the Department of Town and Country Planning (DTCP) in 2013 to develop group housing project Turning Point.

The court observed, “Though, the due date for completion of the project and offer of possession of the allotted units was mentioned as validity of registration certificate being September 15, 2025, but after expiry of more than four years from the booking there is no physical work progress at the site except for some digging work.” The court also observed that the promoter failed to file quarterly reports giving status of work progress required under section 11 of Act 2016.

So keeping in view all these facts, 28 allottees of the project approached the authority seeking refunds.

The authority directed the enquiry officer to report about the compliances of the obligations by the promoter regarding the project, specifically with regard to 70 per cent of amount collected from allottees minus the proportionate land cost and construction cost whether deposited in a separate RERA account as per requirement of the Act of 2016 and Rule 2017.

The enquiry report mentioned, “There is hardly any progress regarding development such as construction on site.” K K Khandelwal, RERA chairman, said, “Such offences are unacceptable. The promoters cannot take allottees for granted after realising their hard earned money. RERA has to act as per the law and ensure allottees’ money is safe and they get also compensation for mental trouble.” PTI CORR HVA

Source: https://theprint.in/india/haryana-real-estate-regulator-asks-vatika-to-refund-homebuyers-money/1202678/

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