3,371 residential projects across the state have been declared 'lapsed' between 2017 and 2021 because the builders were unable to complete them by the deadline.

3,400 housing projects in Maharashtra have ‘time-lapsed’: Rera

As many as 3,371 residential projects across the state have been declared “lapsed” between 2017 and 2021 because the builders were unable to complete them in the deadline they had set while registering their projects with the MahaRera. Of these, 453 projects are in Greater Mumbai, according to MahaRera’s list of “expired” projects.

“The validity of MahaRera registration for these projects has expired. The promoter shall not advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be,” the regulatory authority said.

‘Funding is the biggest reason why builders’ projects lapse in state’

Builders must in such a case apply for an extension. Vasant Prabhu, secretary, Maha-Rera, said that these builders are granted a year’s extension by the housing authority. “But if they are still unable to complete the project after the one-year extension, such builders will have to seek the consent of at least 51% of the people who have booked apartments in their projects. If these flat buyers agree to a further extension, MahaRera will not object,” he said.

“Lapse of project can be avoided if the developer updates the project details mandated by MaharRera on its portal and obtains extension of project if required at a proper time,” Niranjan Hiranandani, CMD, Hiranandani Communities, and president of the builder body Naredco National, said.

Lapsed projects are not blacklisted projects, said developer and vice-president of Naredco West, Hitesh Thakkar. “It’s the timeline of the project, which is lapsed, which can be revived with consent of buyers. Developers must maintain transparency and good relations with their buyers,” Thakkar said.

Anuj Puri, chairman of ANAROCK Group, said Rera registration numbers of various projects in the state have lapsed on account of several factors, but funding is by far the biggest reason. “Rera was implemented in 2017, and a year later the IL&FS crisis held real estate hostage, particularly the residential segment. NBFCs had been a major source of funding for the real estate industry since banks were reluctant owing to rising NPAs. Funding by the NBFCs slowed down significantly with the IL&FS crisis. Private equity funding into the sector also slowed down to a trickle back then,” he said.

Puri said Grade B and C developers were the most impacted as lending to them was minimal. “It is not all doom and gloom, however. Government-backed funds are identifying some projects that are near completion to bring them to completion with last-mile funding, and some of the larger developers are taking over and reviving some other projects,” he said.

Source: https://timesofindia.indiatimes.com/city/mumbai/3400-housing-projects-in-maharashtra-have-time-lapsed-rera/articleshow/85964532.cms

The district administration will soon initiate a drive to recover dues from private developers who have defaulted on payments.

Soon, a drive to recover Rs 400cr dues from builders

The district administration will soon initiate a drive to recover dues from private developers who have defaulted on payments. More than 80 private developers are under the radar and a sum of about Rs 400 crore has to be collected from them, officials have said.

Various government agencies, including the UP-Rera, the Noida Authority and the Greater Noida Authority, have already issued recovery certificates against these developers after having failed to recover dues from them. However, the recovery certificates will have to be executed by the district magistrate as per the UP Revenue Code.

The administration had, in fact, put its plan on hold for a while as it was busy with the management of Covid-19 patients and the rehabilitation of families displaced by the Noida International Airport project. “But now things are now under control and our officials have time to finish the legal proceedings,” a senior administrative officer told TOI.

If a promoter fails to comply with the order of the adjudicating officer of the real estate regulator or is unable to settle the payment towards the land to the holding authority, the unpaid revenue becomes arrears and the developer is designated a defaulter. The district administration has the power to attach the properties and assets in the name of the defaulter.

Additional district magistrate (finance) Vandita Srivastava said that action against 32 defaulters has been initiated so far and assets worth about Rs 350 crore have been recovered or attached. “Majority of the defaulters are based out of Dadri. The sub-divisional magistrate of Dadri will soon identify the other defaulters and attach their properties. We have seven more months in this fiscal to recover the dues.”

Source: https://timesofindia.indiatimes.com/city/noida/soon-a-drive-to-recover-rs-400cr-dues-from-builders/articleshow/85502783.cms

The real estate regulator directed the developer to return the amount paid by the two home-buyers and the bank, which offered loan to the complainants.

Tamil Nadu Real Estate Regulatory Authority: Can’t compel buyers to take delayed flats

Citing an order of the Supreme Court, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ruled that consumers cannot be compelled to take possession of delayed apartment units. Since the developer offered the completed flat after much delay, the real estate regulator ordered the promoter to refund payment with interest and slapped a fine of Rs 1 lakh for causing mental agony to the consumers.

The issue pertains to a housing project developed by Ozone Projects Pvt Ltd in Anna Nagar. Two homebuyers approached TNRERA seeking refund and compensation for the apartments booked by them. According to them, the developer promised to deliver the flat by December 2016 with a grace period of three months, but failed to honour its commitment.

In its response, the developer said that during the contractual period, it suffered two natural calamities in 2015 and 2016.

After hearing both sides, TNRERA ordered that Section 18 of the RERA Act gives flat purchasers the right to withdraw from the project and demand the amount paid by them with interest including compensation, if a promoter fails to hand over possession of a flat on the date specified in the agreement. The Supreme Court in a case had noted that once a builder failed to fulfill its contractual obligation of obtaining the occupancy certificate and offering possession of the flat to the purchaser within the time stipulated in the agreement, the homebuyer could not be compelled to take possession, TNRERA adjudicating officer G Saravanan said in the order.

The real estate regulator directed the developer to return the amount paid by the two homebuyers and the bank, which offered loan to the complainants.

Source: https://timesofindia.indiatimes.com/city/chennai/tamil-nadu-real-estate-regulatory-authority-cant-compel-buyers-to-take-delayed-flats/articleshow/85296284.cms

The Uttar Pradesh Real Estate Regulatory Authority has decided to extend the deadline for around 100 projects in Noida, Greater Noida and Yamuna Expressway, including Ghaziabad, by two years, to help the pandemic-hit realty sector.

UP-Rera extends deadline for 100 realty projects in Noida and Greater Noida

The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has decided to extend the deadline for around 100 projects in Noida, Greater Noida and Yamuna Expressway, including Ghaziabad, by two years, to help the pandemic-hit realty sector.

The decision followed several representations from developers requesting an extension. However, the authority granted the extension on the condition that the developers get the validity of their projects’ maps too extended from their respective authorities.

According to the real estate rules, a developer gets a maximum of seven years to build and deliver a project from the time it gets all necessary approvals. But officials said that the UP-Rera, a quasi-judicial body, had powers to grant an extension under section 8 of the UP-Rera Act.

“In the interest of homebuyers, we have offered an extension of two years for these 100 projects in view of Covid-19 that disrupted work in 2020 and 2021. If any builder needs more than two years, that too can be considered provided they obtain consent from their homebuyers’ association,” said Balvinder Kumar, member of UP-Rera.

Around 200 projects have been delayed across Uttar Pradesh, said the authority officials.

Homebuyers said that the UP government should ensure that their flats are delivered.“The delay has been long and hard. It is high time that the government came forward with a comprehensive policy to address our woes,” said professor Rajesh Sahay, secretary, Noida Federation of Apartment Owners Associations.

Developers also welcomed the move. “The government should also help developers get additional funding to finish the projects in view of the crisis due to Covid-19,” said RK Arora, president of National Real Estate Development Council.

Source: https://www.hindustantimes.com/cities/noida-news/developers-in-noida-ghaziabad-get-two-years-more-to-deliver-flats-101627843522231.html

Government of West Bengal, Housing Department has notified West Bengal Real Estate Rules, vide Gazette notification dated 27th July 2021

Government of West Bengal, Housing Department has notified West Bengal Real Estate (Regulation and Development) Rules, 2021 vide Gazette notification dated 27th July 2021

The Department of Housing undertakes various activities mainly relating to the framing and implementation of various Social Housing schemes through the Directorate of Housing and West Bengal Housing Board.

Source: https://www.wbhousing.gov.in/files/Gazette-Copy-of-West-Bengal-Real-Estate-Regulationand-Development-Rules-2021.pdf

View PDF: https://www.wbhousing.gov.in/files/Gazette-Copy-of-West-Bengal-Real-Estate-Regulationand-Development-Rules-2021.pdf

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