Real estate body to revive stalled projects in NCR

Lucknow

After its intervention to restart a stalled housing project in Noida, the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) is now contemplating to help resume operations of other stalled projects in the state.

The UPRERA decided to step in after successful restart of the Jaypee Kalypso Court (Phase-II) project which restarted construction work at the site after a wait of nine years, on September 19 as UPRERA facilitated conciliation between the promoter and the allottees.

As per the UPRERA sources, NCR region has witnessed many projects slipping into a limbo making it miserable for the buyers who end up making a huge investment for a house of their own but the projects get delayed as the builders often fail to fulfil commitments made to homebuyers.

According to Rajive Kumar, chairman, UPRERA has been successful in resolving the dispute and restart a stalled project. “Jaypee Kalypso Court project of Jaiprakash Associates Limited has been the first such project that UPRERA had taken up for revival and now the promoter has commenced construction work on the project” added Kumar.

Not only NCR, but the regulatory authority is planning to extend this approach to various other districts also in the state where projects are stalled either due to an impasse between the promoter and the homebuyers or the completion date, as declared by the promoter, has lapsed, including the one-year extension permissible under Section 6 of the RERA Act.

In Lucknow, several housing projects of private developers are stuck for several years. Allottees in the state capital want RERA to intervene to restart these pending projects.

According to RERA officials, based on the audit done by consultant Currie & Brown, it has come to light that around 40 stalled projects in Gautam Buddha Nagar district could restart with the intervention and following conciliatory tactic between the promoter and the buyer. This approach is ideally suited to such projects where the promoter is keen to complete the project but unable to do so either due to expiry of registration of the project with UPRERA or due to differences with allottees.

Source: https://www.newindianexpress.com/nation/2020/sep/22/real-estate-body-to-revive-stalled-projects-in-ncr-2200278.html

K-RERA to penalise realtors for not filing project updates

In a new measure that will ensure compliance of rules by real estate developers, the Karnataka Real Estate Regulatory Authority (K-RERA) has decided to levy penalty on builders for failure to submit quarterly and annual updates.

The Section 11 of the Real Estate (Regulation and Development) Act, 2016 and Rule 15(D) of Karnataka Real Estate (Regulation and Development) Rules, 2017 mandates the promoter to perform certain functions including submission of quarterly updates on the RERA website.

In a circular issued on September 3, the K-RERA said any builder who fails to upload quarterly updates will be levied a penalty of up to Rs 10,000 up to one month of delay and Rs 20,000 per month beyond that.

The delay fees shall be effective from the date of the circular and the promoters shall remit the fees through RERA E-Payment at the time of filing of the quarterly updates as enabled by the Authority on its website, the circular said.

The K-RERA has enabled the facility on its website for online filing of quarterly updates and annual audit for the registered projects.

The K-RERA said it has been observing that many of the promoters are not filing quarterly updates and annual audits on its website within the prescribed time in accordance with Rules 15(D) and Section 4(2)(1)(D), post-registration of their projects.

The Rule 15(D) mandates that a promoter shall upload updates on the webpage for the project, within 15 days from the expiry of each quarter on apartments/plots, garages booked, the status update of each building, floor, internal infrastructure and common areas construction with photographs, details on project approvals received, applied and expected date of receipt, approvals to be applied among others.

The compliance of the new rule, which has come into force from September 3, will enable homebuyers to take a comparative decision on buying a property. Every quarter, the builders are required to submit reports on project status, update, sanctioned plan, details of amenities, facilities that will come up in their project.

Source: https://www.deccanherald.com/business/business-news/k-rera-to-penalise-realtors-for-not-filing-project-updates-883999.html

Should you keep paying EMIs after the builder misses possession date?

Mumbai

In a recent case involving a housing complex, Rivali Park Project in Borivali—now called Wintergreen—the builder contended that buyers making payments after the possession date has passed amounts to them agreeing to the delay. But the Maharashtra Real Estate Regulatory Authority (MahaRera) rejected the developer’s claim that the homebuyers had consented to the delay because they kept paying the instalments despite the chance in possession date.

“As per Rera guidelines, in case of a delay by the developer in completion of the project, buyers may opt for either cancelling the deal and claiming refund with interest, or to continue the agreement and seek compensation for the delay period,” said Mukesh Jain and Associates, a Mumbai-based law firm.

Even though MahaRera ruled against the builder in this case between CCI Projects Ltd. and homebuyers, saying buyers were eligible to receive interest payment for the delay period, this might not always be the case.

So, does it make sense to keep making payments after the promised possession date passes?

According to Anuj Puri, chairman, Anarock Property Consultants, you may not have a choice.

“Frustrated with the prolonged project delays, many buyers stop payments to developers. However, under the agreement to sale, sellers or developers are well within their legal right to cancel the booking if buyers fail to honour their part of the payment deal. Since each case may be different, a legal person must always advise on such matters,” he said.

Puri added that although MahaRera ruled in favour of the buyers, the exact variables may differ from case to case and not all such cases are equal in the eyes of the law. “Despite Rera being in place across the country, it is still largely work-in-progress. It is very much a case-to-case scenario. Moreover, respective states’ and union territories’ Reras have their own rules and regulations. Therefore, buyers should first seek local legal advice before taking any action,” he said.

According to Anuranjan Mohnot, MD and CEO, Lumos Alternate Investment Advisors Pvt. Ltd, Rera needs to be simplified to protect interest of homebuyers as well as developers.

“To avoid situations like this, Rera should introduce a milestone-based project review instead of just having one parameter of delays with respect to the possession date. This will help buyers to sense serious deviations at an early stage and they can approach Rera for taking proactive steps to avoid major delays,” he said.

Even in states with a fully functional Rera in place, moving the authority in favour of homebuyers might turn out to be a challenge. It can be very frustrating to have inordinate delays in getting possession of your house, but discontinuing payments can cause further complications. Consider the circumstances and seek legal advice to protect your interests as a homebuyer.

Source: https://www.livemint.com/money/personal-finance/should-you-keep-paying-your-emis-after-the-builder-misses-possession-date-11598349480123.html

Developer can’t add extra floor without nod of buyers: Maharashtra real estate regulator

Mumbai

In a major judgment, the Maharashtra Real Estate Regulatory Authority (MahaRera) disallowed a builder last week from carrying out the construction of an additional floor for his project at New Panvel without the consent of the buyers who already bought flats in the building.

The ruling is significant, as builders over the years modified plans and made additions to their existing constructions without taking the buyers into confidence, leaving the latter helpless, as they were promised a completely different structure.

The case was filed by four homebuyers – Deepesh Singh, Sujay Joshi, Nikhil Bare and Vaibhav Ballal – against Ms Neelkanth Constructions, for its Neelkanth Vihar Phase I project at New Panvel.

The complainants alleged that despite receiving the possession of their flats, the developer is yet to form the society and allot parking spaces to the occupants.

Responding to the complaint, Neelkanth Constructions said it wanted to utilise the unused floor space index (FSI). Accusing the complainants of ulterior motives, Neelkanth Constructions contented that after taking the possession of their flats, the buyers cannot stop it from consuming the FSI of the entire land.

The developer said they started the process of forming the society, but the complainants kept obstructing the respondent to extract money from the builder. Hence, the society formation process was stopped. The developer also said that if the complainants do not disrupt the process, it will go ahead with the formation of the society.

However, while hearing the case, the state real estate regulator cited section 14 of the Real Estate (Regulation and Development) Act (RERA) 2016, which mandated that any modification in the building plans, including the construction of additional floors, required the requisite consent of two-third of the allottees.

“With regards to the construction of additional floor to be constructed in the building, MahaRera directs that without the consent of two-third of the allottees, as prescribed under section 14 of the RERA, a respondent would not carry out any construction on site,” MahaRera said in its ruling.

According to housing activist Vinod Sampat, a builder loses his/her right of modification after the first apartment is sold.

“It is binding on the builder to obtain the consent of the buyer, as the latter has booked [the property] based on the plans given by the developer. Any additional construction would be a burden on the homebuyer, and hence, the consent [of the buyer] is required. Even the extra FSI offered later goes to the kitty of homebuyers,” said Sampat

Source: https://www.hindustantimes.com/mumbai-news/developer-can-t-add-extra-floor-without-nod-of-buyers-maharashtra-real-estate-regulator/story-UUiwdRUYGzpeUkIphqooVN.html

Builder defied deal? Homebuyers have to approach UP-Rera again

Noida

Buyers who have lodged complaints in UP-Rera through a conciliator but are yet to get a satisfactory resolution will have to make fresh appeals to get their cases heard.

UP-Rera member Balvinder Kumar said a complainant is given two options on the regulatory body’s website — a buyer can either file a case through a conciliator, which is free of cost, or make a direct appeal to get the case heard in the Rera court.

The conciliator usually helps the builder and buyer reach an agreement, which is signed by both parties for future reference. However, several buyers have alleged that builders are yet to honour the agreements, even after months of signing them.

A group of 45 buyers of a housing project in Noida Extension had approached the conciliator over delay in handing over their flats. “We had booked our flats in 2010 and were supposed to get delivery by 2013. After six years, we approached UP-Rera through the conciliatory forum. An agreement was reached between the builder and us that they would hand over the flats by December 2019. But till date, nothing has moved. We have just wasted time,” said Bhupendra Tiwari, a buyer.

Ravindra Jain, who has bought two shops in a project, said, “I had approached the conciliator to get the penalty for delay in handover. The conciliator had made an agreement and the builder had agreed to pay the penalty. But it was not honoured later. We tried reaching out to the UP-Rera again. But the lockdown had been enforced by then.”

Arun Taneja, who booked a flat in another project, had a similar complaint over penalty. “The conditions laid down in the agreement by the conciliator have not been honoured by the builder. The terms of penalty payment that the builder had promised in the meeting have been defied by them. What are we supposed to do now?” he asked.

RD Paliwal, a conciliator for UP-Rera, said, “In most cases, builders do agree to meet the promises. But we have not been able to issue signed documents for cases heard via video conference during the lockdown. We usually put the agreements on a document and send it to both parties. If some agreements have not been honoured, we will look into them again,” Paliwal said.

Kumar said the process of approaching a conciliator first can be time-taking. “When a buyer opts for conciliation, the builder often gains time. It is better that buyers make an appeal in the UP-Rera court. If the court feels there can be conciliation, it can issue a directive. In that case, Rera has some enforcement powers, unlike in a conciliation agreement. So, if a conciliation has not been honoured, buyers will have to make a fresh appeal,” Kumar said.

Source: https://timesofindia.indiatimes.com/city/noida/builder-defied-deal-homebuyers-have-to-approach-up-rera-again/articleshow/77208365.cms

Now online applications for project’s registration will be submitted in RERA

Bhopal

In view of the corona pandemic, promoters are required to submit applications through RERA web application for registration of project with Real Estate Regulatory Authority (RERA). For scrutiny by the RERA, promoters are required to submit hard copies of only 5 necessary documents. The remaining documents will be submitted online only.

Promoters are required to submit hard copies of 5 documents along with the application i.e. certified photo copy of Khasra (Form B 1), original affidavit for new project and original affidavit cum declaration (Form B) or any other affidavit required with application. Along with this, they are required to submit only A 3 size lay out plan approved by the Town and Country Planning and document of building plan certified by the competent authority. Submission of hard copies of any other documents with the authority is not necessary for the promoters. Only online documents are sufficient for the promoters.

Source: https://indiaeducationdiary.in/now-online-applications-for-projects-registration-will-be-submitted-in-rera/

Kerala: K-RERA to introduce virtual hearing from July, number of registrations cross 100 in the state

K-RERA (Kerala real estate regulatory authority) will launch virtual hearing from July on wards to redress rising number of complaints regarding real estate projects; especially those of emergency nature. The registration of real estate projects has also crossed 100 in the state. K-RERA has given registration to 135 projects till date and the figures are expected to cross 200 in next two weeks.

K-RERA has recently communicated that the authority has been compelled to adjourn all the hearings of complaints till June 30. In case of complaints requiring urgent hearing, the complainants have been directed to submit an application through e-mail along with their complaints. K-RERA which began hearing of complainants on February 5 had to put off hearing during lock down and owing to social distancing measures, the authority has been focusing on complaints of emergency nature alone. Over 230 complaints are now pending with K-RERA for redressal and many of the complaints are centred around single project with multiple parties filing complaints against the builder.

K-RERA has recently communicated that the authority has been compelled to adjourn all the hearings of complaints till June 30. In case of complaints requiring urgent hearing, the complainants have been directed to submit an application through e-mail along with their complaints. K-RERA which began hearing of complainants on February 5 had to put off hearing during lock down and owing to social distancing measures, the authority has been focusing on complaints of emergency nature alone. Over 230 complaints are now pending with K-RERA for redressal and many of the complaints are centred around single project with multiple parties filing complaints against the builder.

The authority had thought of an e-court like system to do virtual hearing however the web portal needs to be upgraded to facilitate such a system. Virtual hearing will mainly focus on resolving complaints of emergency nature. “ There are a few complaints which require immediate redressal and it can’t be put off owing to restraints in arranging physical hearing process. Virtual hearing is going to be the way forward,” an official with K-RERA said.

K–RERA officials said that although the number of project registrations has crossed 100, majority of the projects come under ongoing category. Of the 135 projects which have been registered, only two come under new project category. Even with the number of applications pending for registration, less than 10 projects are categorised as new. “ This hints at a dullness in real estate sector given the present circumstances. We hope the situation to change as housing demand could go up,” an official with K-RERA said.

The authority has put off registrations for nearly three months owing to lockdown. There have been issues in proper filing of applications on the part of certain builders causing further delay in processing of applications.

With the frequent recurrence of inaccuracies and irregularities, K-RERA had earlier warned the promoters that it will invoke section 60 of Real estate ( regulation and development) act, 2016 which stipulates that any false information given or any contravention of provision of relevant sections by the promoter will attract a penalty which may extend up to 5% of the estimated cost of the real estate project.

Source: https://timesofindia.indiatimes.com/city/thiruvananthapuram/k-rera-to-introduce-virtual-hearing-from-july-number-of-registrations-cross-100-in-the-state/articleshow/76678138.cms

Coronavirus impact | UP RERA extends deadline of real estate projects by three months

After MahaRERA and Karnataka RERA, UP RERA on April 14 extended the validity period of registration of real estate projects in the state by three months on account of COVID-19.

“In view of the dislocation of the construction activity under the real estate projects, CREDAI and NAREDCO have requested the Authority to extend the completion date of the projects as done by some other state RERAs,” UP RERA said in a statement.

In view of the slow pace of construction work due to the need for social distancing and movement restrictions and stoppage of the work following the national lockdown in March, the Authority has decided to extend by three months the date of completion of the projects with the date of completion between March 15, 2020 and December 31, 2020, it said.

The revised registration certificate of such projects will be issued separately and send to the concern promoters, the authority said in a statement.

Source: https://www.moneycontrol.com/news/business/real-estate/coronavirus-impact-up-rera-extends-deadline-of-real-estate-projects-by-three-months-5146061.html

NCR realty developers request RERA authorities to set aside penalty orders

Several developers in the National Capital Region have requested the Real Estate Regulatory Authority (RERA) of UP, Haryana and Delhi to delay recovery notices issued to builders by at least six months, in light of the Covid-19 crisis that has crippled the sector.

These builders were ordered before the clamping of the lockdown to pay compensation to homebuyers for project delays.

“We have requested that no adverse order of refund or recovery be issued for a minimum period of six months. Cash flows of our industry are badly impacted in the present scenario and no customer is able to pay the due instalments,” said RK Arora, the president of the Uttar Pradesh chapter of the National Real Estate Development Council.

The Maharashtra Real Estate Regulatory Authority had extended the validity of registration of projects by three months, effectively pushing back the deadline to complete the projects.

However, developers in the NCR are not keen for such an extension, and have instead sought relief in delaying payment of compensation to homebuyers and more time to file quarterly update on projects.

With mass exodus of labourers, developers fear mobilising construction workers to resume work would bea major challenge.

“It is impossible for the promoters to comply with the penalty orders. Considering the situation wherein the financial markets have collapsed, it will take a long time to get the required funds. Hence penalty should be reviewed and orders be set aside,” Arora told ET.

UP-RERA chairperson Rajiv Kumar told ET that it had held initial talks with developers and a final decision on what relief to offer would be taken soon.

“Expert opinion is that the Covid-19 impact will be long-lasting and will redefine the marketplace for the near future. We have requested to declare this lockdown as force majeure and extend the project completion period by a minimum 9-12 months. This is because once the lockdown is lifted, which is yet uncertain, it will take a minimum six months for us to remobilise the finances and labourers who in most of the cases have migrated to the hometowns,” said Gaurav Gupta, the president of the Confederation of Real Estate Developers Association of India, NCR-Ghaziabad, which has analysed the impact on business for the next year.

Gupta said receipts from sales already completed was almost zero since March 20 and that this trend was expected to continue as a state of fear was prevalent and people were focussing on day-to-day needs.

Experts said much of the direct impact had been caused by the liquidity crunch the sector had been facing for the last couple of years and that the lockdown had exacerbated it. “The supply chain for necessary raw materials for construction activity, like cement and steel, simply does not exist anymore. This has, therefore, had a cascading effect on daily wagers whose principal source of employment comes from the real estate sector. Therefore, a delay in delivery of ongoing projects, both housing and commercial, is expected and timelines provided to RERA will change,” Athena Legal partner Simranjeet Singh said.

Source: https://economictimes.indiatimes.com/wealth/real-estate/set-aside-penalty-orders-developers-to-rera/articleshow/75042282.cms

Call to turn vacant flats into quarantine centres

Many eady-to-move-in flats in the city are lying vacant as there are no takers. So why not convert them into quarantine units, is a suggestion from many people. Realtors from across the city, real estate associations, and even RERA-K officials are now thinking of ways to implement this suggestion. Vishnuvardhan Reddy, member of Real Estate (Regulation and Development Act), Karnataka, told The New Indian Express that many government constructed units like those built by the Bangalore Development Authority and Karnataka Housing Board, are lying vacant.

“These can be used as quarantine centres. They are better than private ones because most private properties lack basic facilities. The ones constructed by the government should have all basic facilities like water, electricity and other amenities, and can be put to immediate use,” he said. He added that Karnataka can also follow the example of Maharashtra, where unused government offices have been converted into quarantine units as logistics-wise, they were a better option.

Those associated with the real estate sector are welcome to the idea of opening their unused apartment and commercial units as quarantine centres. Kishor Jain, CREDAI Bengaluru president said that if it’s unsold, the entire unit can be used as a quarantine centre, but not individual homes as it will create fear. Though there is no request from the government, the idea is being mu l l ed amo n g t h e stakeholders. A senior FICCI member added that since the real estate sector is seeing a lull and many units are vacant, they can be converted into quarantine units. The FICCI member added that discussions among the members, stake holders and with the government, were being held and a decision will soon be taken.

HOTELS FOR ISOLATION UNITS

Bengaluru: The Bruhat Bengaluru Mahanagara Palike (BBMP) has identified non-air-conditioned hotels which will converted into quarantine centres. The state government will pay the room rent for the number of days the patients will stay and for food. The hotels have been directed to use disposable cutlery. The hotels are: Sabarwal Residency, Sudamanagar (50 rooms); Emirates Hotel, BTM layout (40); Empire, Koramangala 5th Block (39); Silicrest, Koramangala 4th Block (30); Oyo Amethyst, Jayanagar 5th Block (32); Ramakrishna Lodge, Gandhinagar (200); Hotel Citadel, Anand Rao Circle (111); Likith International, Gandhinagar (70), Fortune Park JP Celestial, Sampangi ramanagara (129); Arafa Inn, Gandhinagar (46); Lemon Tree Premier, Ulsoor (60); Keys Select, Hosur Road (120); Chalukya Hotel, Chalukya Circle (70); Oyo Town, near Ulsoor lake (28); Sri Lakshmi PG, Domlur (27); Keys Select Whitefield by Lemon Tree Hotel, ITPL Main Road (220); and Trinity Wood Hotel, ITPL Main Road (25).

Source: https://www.newindianexpress.com/cities/bengaluru/2020/mar/31/call-to-turn-vacant-flats-into-quarantine-centres-2123693.html