Give membership details at regd SROs, MahaRERA tells builders

Mumbai

To ensure more professionalism and avoid frauds, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has mandated promoters (builders) to disclose membership details at its registered self-regulatory organisations (SROs).

The main role of SROs involves to create awareness programmes and encourage its members to comply with the provisions of the Act, rules and regulations, circulars issued by the MahaRERA regularly. A copy of the order is with the Free Press Journal.

Commenting on the development, Manju Yagnik, vice chairperson Nahar Group and vice president NAREDCO (Maharashtra) said, “With this inclusion, the SRO will now be responsible for its members adopting the RERA principles, rules and regulations in a more holistic manner.

The move will beneft consumers in terms of responsiveness and transparency. It will also allow SROs to enable developers to ensure greater professionalism on their part, and build confidence and credibility for their brand.”

Likewise, Parth Mehta, the Paradigm Realty managing director, stated, “It is another wise move to bring parity and professional code of conduct to the real estate practices across the state.

The SROs will encourage members to comply with the RERA Act provisions and implement MahaRERA rules and regulations. Unfair activities practised by developers have shaken the confidence of home-buyers, impacting the sector at large.

The move will restore trust deficit between home-buyers and developers, giving a boost to investment in the real estate sector.”

From December 1, builders applying to MahaRERA for registration of their real estate projects shall have to disclose their membership details with registered SROs.

Currently, the registered SROs with MahaRERA are Maharashtra Chamber of Housing Industry (MCHI), Confederation of Real Estate Developers Association of India (CREDAI), National Real Estate Development Council (NAREDCO).

While any other group, federation of promoters interested to be registered as an SRO with MahaRERA can apply online. They should have at least 500 MahaRERA registered projects of their members. Once approved, the SRO registration will remain valid for five years, according to MahaRERA.

Source: https://www.freepressjournal.in/mumbai/give-membership-details-at-regd-sros-maharera-tells-builders

Madhya Pradesh’s RERA gets judicial teeth, first in the country

Bhopal

Real Estate Regulatory Authority (RERA) of Madhya Pradesh became the first realty regulator in the country to get judicial teeth. Retired district judge, DN Shukla was appointed as first executing officer of RERA on Wednesday.

With the appointment of execution officer it will be legally binding on parties, including realtors and consumers, to follow the directives of the authority.

MP government had amended RERA rules for the purpose and issued a gazette notification facilitating appointment of an executing officer.

In the present set up, if RERA passes an order and the party concerned is unwilling to accept it, RERA moves the civil court. In such a situation, odds are that the matter may get delayed in legal procedures.

Going by RERA statistics, out of the 3,800 complaints it received so far, 2,600 have already been disposed, while 1,200 are pending. Of the total disposed cases, 88% went in favor of allottees, while the remaining 12% went in favour of builders. It means 2,300 went in favor of allottees while 300 to builders.

Of the total 2,300 orders that went against builders, there are about 400 cases in which builders are not complying with RERA orders. The execution officer with powers of both the civil and revenue court would now ensure the compliance of RERA orders.

The appointment required amendments 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. State government did the needful on the proposal of RERA.

The executing officer would take charge in a week. A panel of legal experts comprising senior judges and law secretary conducted interviews after inviting applications and finalised the name of DN Shukla.

Once the executing officer takes charge an allottee in favour of whom order was given by RERA against the builder and the builder is not accepting it, can approach the execution officer in 90 days. The execution fee would also be borne by builders once the order is executed and allottee need to pay only a token sum of Rs 1,000.

RERA chairman Anthony deSa confirmed no other state in country has an executing officer, as of now. He said, it would further strengthen the authority and ensure that its orders are followed without fail.

Source: https://timesofindia.indiatimes.com/city/bhopal/mps-rera-gets-judicial-teeth-first-in-the-country/articleshow/72150219.cms

Big relief to home buyers! RERA moots policy to complete stalled projects

The authority recommended that such a policy can be formulated on the lines of Section 8 of the Real Estate (Regulation and Development) Act, 2016, under which it can allow completion of pending developmental work in a stalled project.

In a bid to provide relief to homebuyers in cases of stuck projects, Uttar Pradesh (UP) RERA has suggested to the state government to formulate a policy where the authority can direct homebuyers to form an association, which will then work on completing the stalled housing units. Else the authority, with participation of homebuyers, can go to the open market to hire a co-developer.

The authority recommended that such a policy can be formulated on the lines of Section 8 of the Real Estate (Regulation and Development) Act, 2016, under which it can allow completion of pending developmental work in a stalled project.

A senior state government official said UP RERA, in a letter to the state government, has suggested forming a policy on lines of Section 8. “The authority said progress of projects and timely completion is dependent on utilisation of money collected from homebuyers. To ensure this, it got around 210 projects audited and took necessary action based on the audit. It de-registered some projects and made a reference to the state government for deciding a policy about proceeding under Section 8 of the Act in such matters,” he added.

If this Section can be further utilised in a “more legalised institutional setting”, then RERA would be able to provide relief to around 25,000-30,000 home buyers. The state government is reviewing the proposal, the official said.

Section 8 provides that upon lapse of registration or revocation of registration under RERA, the authority may consult the government to take such action as it may deem fit, including carrying out the remaining development works by a competent authority or an association of allottees or in any other manner, as may be determined by it.

When contacted, UP RERA member Balwinder Kumar told FE, “We have written to the state government that first we can invite the homebuyers’ association to work with us for completing the remaining development work. If that is not possible, we will go to the open market and select a co-developer in a transparent procedure to complete pending work. It is important that we search within our own official spheres to find solutions for stalled projects.”

Another UP RERA official said top priority is providing relief through prompt hearing and complaint redressal. UP RERA’s track record proves this, he said, adding, “Before RERA, only 2,014 complaints were disposed by officials in the state of the total 5,139 registered complaints. However, this changed with formation of RERA. Around 12,780 complaints were filed and 8,506 complaints decided till August 2019.”

“Number of registered complaints in UP and their disposal by RERA is highest in the country,” the official noted. He added that there are a couple of cases in UP and Madhya Pradesh where the authority took action under Sections 7 and 8.

“The authority is also getting stressed projects inspected and has developed a mobile application for preparation and submission of reports online. These are uploaded on the web page of the project concerned. It has also issued show-cause notices to 21 projects in NCR and 17 non-NCR projects, where promoter has either not obtained completion or occupancy certificate nor applied for extension of project registration, but work is either going on or is stalled,” he explained.

UP RERA has also set up a panel of auditing firms for financial and forensic audit of projects and will soon embark upon the verification of escrow accounts of projects through the auditing firms on the panel of Institute of Chartered Accountants of India (ICAI).

At present, more than 17,900 complaints have been registered with UP RERA, which is the highest in the country. Of this, over 10,500 complaints have already been decided.

Source: https://www.financialexpress.com/industry/big-relief-to-home-buyers-rera-moots-policy-to-complete-stalled-projects/1766794/

MahaRERA to soon have 27 conciliation panels for timely project completion

Pune

The Maharashtra Real Estate Regulatory Authority (MahaRERA) will soon have 27 conciliation panels across the state to help address issues between aggrieved consumers and developers and ensure completion of projects on time.

MahaRERA also wants to ensure through the panels that the buyers get what they pay for. Currently, 15 conciliation panels are in operation — 10 in Mumbai and 5 in Pune.

The panels have so far resolved nearly 400 cases of the 541 it received, MahaRERA officials said. The additional 12 panels will be for Pune (1), Thane, Navi Mumbai, Nashik and Nagpur.

These panels comprise a consumer representative and a developer representative, who interact with banks, homebuyers and builders for timely completion of the projects. A recent meeting of the housing ministry had appreciated the formation of the conciliation forums in Maharashtra and urged all other states to replicate the model.

Mumbai Grahak Panchayat (MGP) chairperson Shirish Deshpande, who had taken the lead in forming such forums, said citizens have been registering for conciliation as they believed it would be a quicker process (if both the parties were willing) rather than waiting for a long-drawn case.

“The response towards the forums has been encouraging, both from the consumers and the developers. Keeping this in mind, it was decided to increase the number of such forums,” he said.

The conciliation panels help interact home buyers, builders and banks to maintain the stipulated time declared by the developer on its website.

Earlier last month, MahaRERA ordered seizure and auction of 253 properties of builders across the state to refund flat buyers, who were yet to receive possession because the developers had no funds to complete the projects.

All of these were cases where the buyers saw the real estate value of their flats plummeting and wanted to take advantage of the RERA provisions that allowed them to exit the projects with their investment, along with the interest amounts.

The MahaRERA officials said buyers trying to exit the projects would derail the entire process and told the allottees to get together and “combat the situation”.

Source: https://realty.economictimes.indiatimes.com/news/industry/maharera-to-soon-have-27-conciliation-panels-for-timely-project-completion/70812946

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