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

Home buyers of the Greater Noida Industrial Development Authority project Omicron 1 have mounted legal challenge against the government agency for having failed to deliver the project on time, and for demanding extra charges over and above the agreed price.

Buyers mount legal challenge against delayed Greater Noida home project

Home buyers of the Greater Noida Industrial Development Authority (GNIDA) project Omicron 1 have mounted legal challenge against the government agency for having failed to deliver the project on time, and also for demanding extra charges over and above the agreed price and against the contractual obligation that does not have any escalation clause.

One of the aggrieved buyers, Neelam Tandon, after having made several reminders to the agency, had approached the Real Estate Regulatory Authority (RERA). She was subsequently asked by the RERA Authority to take possession of the delayed project and directed the government agency to pay delayed interest from January 30, 2017 at the rate of MCLR+1 per cent till the offer of possession.

The buyer has now challenged the RERA judgment before the RERA Appellate, since Section 18 of RERA states that the buyer has a right to demand refund with interest if the project has not been delivered on time.

Disputed properties

Tandon is one of the buyers scheduled to get the possession by January-end 2017 but was offered the possession only in July, 2019. Moreover, she was also asked to pay an extra fee of more than ₹5 lakh, over and above the total cost, as agreed in the contract.

GNIDA is home to one of the most disputed property markets of the country. The government agency has the mandate of regulating the private builders and giving occupancy/completion certificates on the merits of the project. However, the agency itself has failed to complete the project on time and offer the buyers possession within the agreed time and price.

According to Tandon’s counsellor Shivam Tyagi, the GNIDA, that should ideally set the precedent of how private builders should operate, seems to be inspired by the wrongdoings of the builders in this case.

Source: https://www.thehindubusinessline.com/business-laws/buyers-mount-legal-challenge-against-delayed-greater-noida-home-project/article34239326.ece

The UP RERA will organise a National Lok Adalat online starting on April 10 to address the disputes between home buyers and developers and reduce the pending cases.

UP-Rera to hold lok adalat on April 10 to address grievances

The Uttar Pradesh Real Estate Regulatory Authority (Rera) will organise a National Lok Adalat online starting on April 10 to address the disputes between home buyers and developers and reduce the pending cases. This is the first time that a lok adalat is being organised to resolve the issues faced by the real estate sector.

Officials of the UP Rera will hold the lok adalats online from the Lucknow and Greater Noida offices on April 10, July 10, September 11 and December 11.

According to UP Rera officials, there are around 6,500 pending cases. Around 70% of these cases are from Noida, Greater Noida, Yamuna Expressway and Ghaziabad areas while the remaining are from Lucknow.

Issues like parking space, flat size, flat cost escalation, interest waiver and refund of investment among other issues would be sorted out at the lok adalats, said the officials.

The UP state legal service authority had asked Rera to hold the lok adalats following directions from the National Legal Service Authority headed by the Chief justice of the Supreme Court.

“The homebuyers can file an application on the UP Rera’s portal and get their cases settled. The National Lok Adalat is an effort to provide speedy justice to home buyers. If this initiative runs smoothly, we can organise lok adalats next year too. We want to know how beneficial this exercise is going to be for consumers,” said Anand Shukla, legal advisor to UP Rera and nodal officer of the lok adalat.

The complaints filed under sections 31 and 63 of Rera Act and the cases where a settlement is possible on the basis of reconciliation agreement will be taken up for hearing in the lok adalats.

“Through the lok adalats, homebuyers will get a transparent amicable settlement and speedy disposal of their cases,” said Rajesh Kumar Tyagi, secretary of UP Rera.

The UP Rera will send the link for online hearing of the cases to the complainant buyer and the realtor before the first lok adalat on April 10.

“We hope realtors will take this initiative seriously, join the lok adalat and solve the issues being faced by the home buyers,” said Abhishek Kumar, president of Noida Extension flat owners’ welfare association.

The Confederation of Real Estate Developers Association of India (Credai) is hopeful of the lok adalats leaving a positive impact. “The cases pending before Rera should be solved via mutual agreement. Realtors should use this opportunity and solve disputes as it will help boost the real estate sector,” said Prashant Tiwari, president of Western UP’s wing of Credai.

Source: https://www.hindustantimes.com/cities/noida-news/uprera-to-hold-lok-adalat-on-april-10-to-address-grievances-101616780429847.html

UP-RERA has imposed penalties upon Supertech, Mahagun India, Ansal Properties and Infrastructure, Logix Infrastructure, among others for the non-compliance of the orders of the authority.

UP-RERA penalises Supertech, Mahagun others, revokes Ansal API project registration

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has imposed penalties under Sec-63 of RERA upon Supertech, Mahagun India, Ansal Properties and Infrastructure, Logix Infrastructure, among others for the non-compliance of the orders of the authority.

Penalties worth a total of Rs 1.24 crore have been levied. Other builders’ name include Nivas Promoters, Sare Saamag Realty, Newtech Promoters and Developers, T.G.B. Realty, I.V.R. Prime Developers, La Residentia Developers and Logix City Developers.

The authority has directed these promoters to ensure compliance of its orders and deposit the amount of penalty within a month, failing which the amount of penalty shall be recovered as arrears of land revenue.

UP-RERA also revoked registration of Ansal API, Pocket 4, Sector-O, Sushant Golf City project of Ansal API. The authority had issued a show-cause notice to the promoter revocation of registration of its project in May 2019 on the grounds of violation of the terms and conditions of the registration.

The authority, after considering the reply of the promoter had kept the final decision on the show-cause notice on hold for a period of four months subject to the compliance of all the nine conditions specified in the above mentioned order. The promoter did not comply with the order and hence the authority vide its notice dated September 5, 2020, directed the promoter to submit the compliance report of its order.

The authority after considering the reply of the promoter Ansal API dated October 14, 2020 and its oral submissions, decided to revoke the registration of this project with immediate effect for the reasons of following glaring irregularities:

  • Irregularities committed in the sale of units under the project
  • The money was collected from the allottees without first obtaining a sanctioned map of the project which is proof of a fraudulent trading practice.
  • No work has been done by the promoter over the previous 9 years, that is since the year 2011.
  • The promoter has diverted an amount of Rs. 16.03 crore collected from the allottees of the project.
  • Necessary compliances including the QPR of the project were not done on the website of the Authority.
  • The promoter has not complied with the orders passed by the benches of the Authority on the complaints of the allottees.

The authority has also barred the promoter from accessing the registration page of the project on the website of the Authority has frozen the escrow account of the project in HDFC Bank, Hazratganj and has constituted a project monitoring and advisory committee under Bhanu Pratap Singh, member, UP-RERA for facilitating the remaining work of the project as per section 8 of RERA.

UP-RERA has taken this step for effective protection of the interests of the homebuyers and ensure compliance of the provisions of RERA Act. This is the 3rd project of Ansal API whose registration has been revoked by the authority.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-penalises-supertech-mahagun-others-revokes-ansal-api-project-registration/81590519