UP-RERA issues notice to Ghaziabad development body in housing scheme case

Ghaziabad

The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has issued a notice to the Ghaziabad Development Authority (GDA) over its failure to appear before the regulator in a case related to the Indirapuram housing scheme for the economically weaker section.

The GDA, however, says the scheme doesn’t come under Rera’s purview.

The case was filed at the Greater Noida bench of UP-Rera by 60-year-old Ghaziabad resident Raj Prakash Tyagi, who has not yet got the possession of his EWS house that he was allotted 30 years ago by the GDA. The Rera bench issued five notices to GDA between February and June this year, asking its representative to appear before the regulator.

The bench has now threatened to pass ex-parte order on the basis of available documents and facts, in case GDA officials do not appear and clarify their stand, sources told TOI.

As per RERA rules, all development agencies and private builders are required to update their projects so that they can be accessed easily by the buyers and the status of the projects are in the public domain.

However, GDA chief engineer VN Singh said the EWS Indirapuram scheme was launched in 1990 and completed by 2001. “So, it does not come under Rera. The agency cannot expect the department to register the project that was completed 18 years ago. We have already submitted this reply, but despite that, the notice has been issued.”

Source: https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-issues-notice-to-ghaziabad-development-body-in-housing-scheme-case/70763231

RERA should be amended to plug loopholes: H-RERA Chairman

New Delhi

The realty law RERA should be amended to plug loopholes and make it more effective for the interest of all stakeholders, according to regulators.

In an event organised by industrychamber PHDCCI, Gurugram RERA Chairman K K Khandelwal asked India Inc to make suggestions to the government for necessary amendments to RERA Act to make it dispassionately objective for both builders and home buyers.

According to Khandelwal, the existing stipulations and provisions of RERA Act have many loopholes that need to be plugged in the interest of all the stakeholders, PHDCCI said in a statement.

“In its current format, several sections and sub-sections including clauses and sub-clauses of the RERA Act are contradictory and therefore, open for many legal interpretations as well interpretations of real estate regulatory authorities of different States and therefore, amendment to them are called for to make sure that all stakeholders in the real estate and construction sector get a fair deal and the intended growth of the sector is ensured,” Khandelwal was quoted as saying.

Balvinder Kumar, Member, UP RERA informed that the UP RERA has so far received 70,000 complaints from various home buyers against builders in the state that have defaulted in their delivery commitments.

Of which 10,100 complaints have been addressed.

Source: https://realty.economictimes.indiatimes.com/news/industry/rera-should-be-amended-to-plug-loopholes-h-rera-chairman/70763340

MahaRERA says MoU proof enough for ownership

Mumbai

Though two homebuyers had only a Memorandum of Understanding (MoU) as evidence that they invested in a flat. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled that it is proof enough of ownership and directed the developer to refund Rs 82.95 lakh with 10.75 per cent interest from 2012.

According to the complaint, Krishna and Veena Agarwal had booked flat in a project in 2012 and paid Rs 82.95 lakh out of the flat cost of Rs 89.41 lakh.

The complaint said the developer had assured possession in 2016, but in 2017, unilaterally changed the possession date to July 31, 2022.

The complaint also said that on the MahaRERA portal, the developer has mentioned that 40 floors are proposed, 28 are completed, but the Commencement Certificate is only till 27th floor; therefore, the Agarwals want to withdraw from the project and seek refund of their investment with interest.

During the hearings, the developer claimed that the Agarwals were not homebuyers but investors and that the MoU was not registered.

MahaRERA member Madhav Kulkarni observed that the Appellate Tribunal had held that even in the absence of a registered agreement, such complaints are maintainable.

Stating that the developer should not have accepted such a huge amount when the project was not progressing as per schedule, Kulkarni held that the builder had failed to deliver possession of the flat as per agreement and directed the company to refund the paid amount from the date of payment till final realisation.

Source: https://realty.economictimes.indiatimes.com/news/industry/maharera-says-mou-proof-enough-for-ownership/71002224

MahaRERA takes suo motu action against two real estate agencies

Pune

The Maharashtra Real Estate Regulatory Authority(MahaRERA) has for the first time taken suo motu action against two real estate agencies based out of Pune and Kalyan for facilitating sale of unregistered projects.

MahaRERA chairperson Gautam Chatterjee slapped Rs 80,000 and Rs 40,000 as fine on the Pune and Kalyan projects, respectively, last week. MahaRERA officials said the suo motu action was taken by Chatterjee because in both the instances, “unregistered” projects were being sold. TheReal Estate (Regulation and Development) Act makes registration of projects a must before sale.

“For the real estate agents, it is mandatory to sell the registered projects. The authorities initiated the action because the projects sold in Pune and Kalyan were unregistered,” a senior RERA official told TOI.

In the case in Pune, an agency facilitated the sale of apartments in a project spread over a 100-acre township in the Haveli area through advertisements on various social media websites without mentioning any MahaRERA registration details. In the second case, an another agency facilitated the sale of apartments in an unregistered project in Kalyan by circulating SMSs dated August 9, 2019.

In both the cases, MahaRERA noted that the material placed before it prima facie revealed that the agencies had facilitated the sale of apartments in projects not registered (with MahaRERA). This was in violation of Section 10(a) of the The Real Estate (Regulation and Development) Act. The officials said MahaRERA decided to take suo motu cognizance in exercise of the powers conferred upon it under Section 35 of the Act. Subsequently, a notice to the agents was issued and they were told to appear before the authority and explain their stand on the issue.

“In both the cases, the respondents, or the registered agents, have tendered apology and vowed not to solicit, misguide or engage in such facilitation of advertisements or sale. They submitted an affidavit that such violations of the Act would not happen in future and that they would strictly comply with the provisions of the statutes and the rules, regulations, orders and circulars issued under it,” an official said.

MahaRera chairperson in his hearing accepted that the violations of the provisions of the Act were inadvertent and the agents did not have any intention to show non-compliance towards the Act or its rules.

He has taken an undertaking from both agents that such a violation of the Act would not happen in future.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/maharera-takes-suo-motu-action-against-two-real-estate-agencies/71073545

UP-RERA to launch single window system soon

Lucknow

Soon, citizens, builders and developers would be able to avail several facilities offered by Uttar Pradesh Real Estate Regulatory Authority (UPRERA) through a single window system.

Citizens and developers would be able to get maps approved, lodge complaints and, secure progress reports and no-objection certificates for projects.

UPRERA chairperson Rajiv Kumar said “All information about the facility will be made available online. Citizens will also be able to file complaints in case they are duped by a developers or the builder is delaying possession of a unit and also seek information about promoters,” he added.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-to-launch-single-window-system-soon/70796811

Around 16 housing projects under MahaRERA scanner

Pune

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has placed 16 registered projects under the scanner for non-completion by developers who claimed to have gone bankrupt.

Complaints against these projects have been received mainly from Pune, Mumbai, and Thane, said the authorities. A hearing will be given to these developers, following which they will have to revert within a month or their registration will be revoked under section 7 of the MahaRERA Act, officials said.

In all, 70 complaints have been received from members of the homebuyers’ association against these 16 projects.

The regulatory body had said that homebuyers should form associations and lodge complaints against promoters under section 7 of the MahaRERA Act.

The MahaRERA authorities told TOI that several complaints have been received against these projects and the standard operating procedures (SOP) were put in place for revoking their RERA registration.

Under SOP, homebuyers can form association and lodge a complaint under section 7 of the MahaRERA Act, demanding that the registration be revoked and a new developer be appointed with the help of MahaRERA officials.

“The complaints have been received mainly from Mumbai, Pune and Thane against these projects. The MahaRERA will decide on the projects that have been shelved due to bankruptcy. For each of the registered complaint, hearing has been given to banks and homebuyers’ association and they have been asked to check on the projects’ feasibility,’’ stated officials.’ As per the SOP, the developers will get a month’s notice to arrange for money to complete the projects. If they fail to do so, the homebuyers’ association can appoint another developer or they can complete it themselves.

Citizens who have been issued MahaRERA orders but are awaiting implementation stated that the SOP would help to take the projects ahead if the association members work together. “There is very slow implementation of MahaRERA orders and the SOP should help,’’ said an affected citizen.

Developers, however, feel that the one-month window is too short a time and they should be given more time, especially, when a developer has gone bankrupt, they said.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/around-16-housing-projects-under-maharera-scanner/70431952

Centre to tell Maharashtra to bring unregistered projects under MahaRERA

Pune

The Union minister of housing and urban affairs on Sunday said he would tell the state government’s housing department to look into bringing the unregistered projects under the Maharashtra Real Estate Regulatory Authority’s ambit.

Hardeep Singh Puri, the Union minister of housing and urban affairs, said he would be writing to Maharashtra chief minister and the Maharashtra Real Estate Regulatory Authority (MahaRERA) within the next fortnight to do the needful.

He made the commitment after hearing Shirish Deshpande, the chairman of Mumbai Grahak Panchayat — the Maharashtra consumers’ forum — in a meeting of the ministry of housing and urban affairs in Delhi.

The meeting was held under the chairmanship of Union finance minister, Nirmala Sitharaman, to discuss various issues concerning the real estate sector and the steps to be taken to strengthen it.

Deshpande told TOI that Section 4 (2)[c] of Real Estate Regulatory Authority Act requiring builders to produce sanctioned building plan and commencement certificate for registration was not mandatory in nature. This was also put forth by Madhya Pradesh RERA chief and RERA chiefs of other states too echoed it, he said.

Against this backdrop, Deshpande expressed hope that there was no need to amend Section 4 (2) [c] and projects could be registered with RERA without those certificates. “This will bring a huge number of unregistered projects under the ambit of MahaRERA,” he said.

Another participating member said the act clearly stated that if any project had not received completion certificate in 2017, when the act came into force, it would come under RERA irrespective of registration. “If any such projects are not registered, they would have to be registered and if it is not it is the duty of the authority to ensure registration,” said an activist.

Consumers have been approaching MahaRERA for registered projects so far.

The state consumers’ forum also put forth the delay in bringing redevelopment projects under MahaRERA. The state real estate regulatory authority has proposed an amendment to the existing rules to bring the rehabilitation and sale components of redevelopment projects under the ambit of the Real Estate (Regulation and Development) Act. MahaRERA has sent a letter to chief minister Devendra Fadnavis for his approval to the amendment proposal.

Shirish Deshpande, the chairman of Mumbai Grahak Panchayat, said rules would have to be amended to consider any redevelopment project as “a whole project.”

The components related to the rehabilitation for the owners and sale are now accounted separately.

The developers now register only the sale component.

It will bring all redevelopment projects, with the rehabilitation components, under RERA.

Source: www.realty.economictimes.indiatimes.com/news/industry/centre-to-tell-maharashtra-to-bring-unregistered-projects-under-maharera/70651767

Madhya Pradesh RERA proposes modification in rules

Bhopal

To ensure that its orders are implemented without any delay, the Real Estate Regulatory Authority (RERA), Madhya Pradesh, has proposed a modification in the rules. If the government gives its nod, MP would be the first state in the country to do so.

According to sources, RERA has suggested appointment of a district judge level officer as an executing officer with the powers of the civil court as well as revenue court. The proposed tweak will require a modification in state RERA rules 27 and 28 that deal with recovery of interest; penalty and compensation; implementing the orders; directions and decisions of the authority.

RERA chairman Anthony de Sa said the proposal has already been sent to the government. Prior to sending the proposal in black and white, the proposal was discussed with the state government. The government has shown its willingness to do so, said sources.

Once the proposed modifications are done, orders of RERA would be implemented more effectively and bring in respite to both buyers and builders, de Sa added.

As per the existing set up, if RERA passes an order and the party concerned is unwilling to accept it, RERA takes up the matter in civil court. Odds are that the matter may get delayed in legal procedures.

On the other hand, if the authority has an executing officer — with the powers of the civil and revenue court — it can settle the grievance at its level.

The case disposal rate of RERA is around 70 per cent. Out of the 3,300 complaints that RERA received so far, 2,200 have already been disposed, while 1,000 are pending. Out of the total disposed cases, 85 per cent went in favour of allottees, while the remaining 15 per cent went in favour of builders. Complaints from Bhopal and Indore account for 60 per cent of the total, while the number of projects registered with RERA is around 2,200.

According to officials, the need for an executing officer was felt in around 300 cases. The number may not be huge, but to ensure all its orders are executed in their true spirit, modification is needed in the rules, the officials added.

Source: www.realty.economictimes.indiatimes.com/news/industry/madhya-pradesh-rera-proposes-modification-in-rules/70519039

RERA lawyers form Bar Association of MahaRERA

Mumbai

With more and more lawyers representing clients in Real Estate (Regulation and Development) Act (RERA) cases, the advocates handling these cases on Friday registered their Bar Association of MahaRERA with the Bar Council of Maharashtra and Goa.

State Advocate General Ashutosh Kumbhakoni on Friday formally presented a certificate of registration to the Bar Association of MahaRERA members at his office. Advocate Harshad Bhadbhade has been elected as the President of the association while advocate Anil D’souza and advocate Bishwajeet Mukherjee will serve as the Secretary and Joint Secretary.

The association was registered under the Bar Association (Constitution, Registration and Control) Rules, 2005 framed by the Bar Council under the Advocates Act, 1961 and Maharashtra Advocats Welfare Fund Act, 1981.

“MahaRERA cases with serial numbers having crossed the magical one lakh figure, it is easily the fastest growing and most approached quasi-judicial body in India. The Bar Association of MahaRera will strive to be the crucial link between the Bar and the Bench. There are many issues that litigants and advocates themselves are facing and this Bar Association will do its very best to be the bridge between all stake holders,” said secretary Anil Dsouza. He said the association has 50 members at the moment.

Maharashtra is the leading state in the implementation of RERA and has the highest 21,812 ongoing real estate projects registered with it. Out of these 16,946 projects are ongoing under the Authority’s monitoring, while 4,698 or 21 per cent of these projects have been successfully completed since May 1, 2017. MahaRERA received more than 8,217 complaints, and it has resolved and given orders in 62 per cent or 5,103 cases. 3,114 complaints are presently in the process of hearings.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/rera-lawyers-form-bar-association-of-maharera/70426128

Punjab RERA constitutes group to examine laws related to Real Estate

Chandigarh

Punjab’s Real Estate Regulatory Authority has constituted a group to examine various laws related to real estate sector with a view to bring transparency and harmonise the real estate laws in the state, an official statement said here.

The statement quoting spokesperson of the Housing and Urban Development Department said the two-member group would examine various laws such as Punjab Regional and Town Planning and Development Act, 1995; Punjab Apartment and Property Regulation Act and Punjab Apartment Ownership Act, 1995.

“After analysing the existing laws of the state dealing in the field of real estate, the group would submit its suggestions to make necessary modifications so that these could be harmonised with the provisions of The Real Estate (Regulation & Development) Act, 2016 (RERA)…,” he said.

The amendments proposed by the group would be submitted to the government for approval.

The Punjab State Real Estate (Regulation and Development) Rules, 2017 were notified by Punjab Housing and Urban Development Department over two years ago.

To bring the prevalent laws in conformity with the provisions of The Real Estate (Regulation & Development) Act, 2016, it was felt there is a need to examine and amend these, the spokesperson said.

The Housing and Urban Development Department had requested Real Estate Regulatory Authority, Punjab to form a group to take up the job of scrutinising and examining the laws and identify necessary changes, he added.

Under RERA, each state and union territory has its own regulatory authority which frames regulations and rules as per the Act.

RERA covers both new project launches and the on-going projects which have not been completed or the occupation certificate not received.

It makes it obligatory on the part of the builders not to book, sell or offer for sale, or invite persons to purchase any plot, apartment or building in any real estate project without registering the project with the authority.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/punjab-rera-constitutes-group-to-examine-laws-related-to-real-estate/70529031