UP-RERA spots 57 rogue residential projects on outskirts of Lucknow

Lucknow

Take all reasonable precautions before buying your dream house or apartment on the outskirts of Lucknow.

The UP Real Estate RegulatoryAuthority (UPRERA) has identified 57 apartments and housing colonies that have been developed without requisite permission from local authorities and any investment in these projects is not safe, officials have warned.

Satellite images taken by the Remote Sensing Centre (RSC), which on the request of UPRERA is carrying out a survey, have helped identify these rogue projects. So far, the centre has completed 70% survey and identified the 57 along Faizabad, Sultanpur and Sitapur roads. Survey in remaining areas will be completed by the end of June.

The inspection was commissioned in March after two allottees of a housing project lodged a complaint regarding the registration money taken by a builder on Sitapur road. According to Section 13 of the RERA Act, a buyer has to pay 10% of the apartment/house value as registration money. The complainant claimed that the builder was charging 15% instead.

Chairman of UPRERA Rajive Shukla said they later came to know of more than 150 cases in which builders had asked for more registration money. “We also received complaints about builders disappearing after taking the allotment money. That is when we decided to conduct the survey,” he added.

Sources in UPRERA said developers of the 57 rogue projects would be served notices, asking them to seek registration from local authorities such as LDA or zila panchayat, and fullfill all fire safety norms. They will also be directed to return extra money if registration fee charged was more than the prescribed 10% of the apartment value.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/up-rera-spots-57-rogue-residential-projects-on-outskirts-of-lucknow/69765435

UP-RERA to issue show-cause notice to builders with stuck projects

New Delhi

Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has decided that if there is no progress in completion of the residential projects, the authority will issue show cause notice to deregister their projects.

It further said that the notice will also be issued if the builder fails to deliver projects, fails to show his keenness to deliver flats, if the builder does not resume construction and is absconding or in jail.

The authority in the last few days has issued deregistration notices under Section 7 of the RERA Act to seven builders for failing to meet their commitments to buyers covering 14 projects and approx. 4800 residential units.

Their matter is still under active consideration at various stages.

UP-RERA has also sent notices to many developers over bad construction quality and project delays.

Under RERA Act 2016, Section 8 provides an indication that the Authority can provide a platform to take up stressed projects and bring them to completion.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/up-rera-to-issue-show-cause-notice-to-builders-with-stuck-projects/69485164

MahaRERA: No advertisement expenses in construction costs

Amendments made to the Maharashtra RERA rules stipulate that real estate developers can no longer claim expenses made on advertisements and promotions, as well as brokerage commissions as part of their construction costs.

According to RERA regulations, developers are required to deposit 70 per cent of the funds collected from home buyers in a separate RERA account. These funds can only be withdrawn for construction with appropriate certification from the architect and the chartered account. This was done to check the practice by developers to collect booking amounts and flat sales from home buyers and moving them to another project, often stalling the first project.

“The development cost or cost of construction of the project shall not include marketing and brokerage expenses towards sale of apartments. Such expenses though part of the project cost should not be borne from the amount that is required to be deposited in the designated separate account,’ said a notification issued by the state housing department on June 6.

‘Developers often show expenses for full-page ads also in this account. Now, those marketing expenses have to be shown in the remaining 30 per cent. For home buyers, it means that more money will available for completion of housing projects,’ said Gautam Chatterjee, chairperson, MahaRERA.

The notification has also reduced the minimum fee that developers need to deposit with MahaRERA at the time of registration of a project from Rs 50,000 to Rs 10,000 for plotted developments. Earlier, developers had to pay between Rs 50,000 and Rs 10 lakh as per the area of the land proposed to be developed at the rate of Rs 10 per sqm. Now, for plotted development, the registration fee will be calculated at the rate of Rs 5 per sqm.

The notification also gives brokers and real estate agents an opportunity to lodge complaints with MahaRERA against developers if their commission or fee was unpaid. “If there is a broker or real estate agent involved in the transaction between the developer and a home buyer, then his commission or brokerage from developer’s side or the buyer’s side should be paid to him as per agreed terms of payment. We have now included this in the RERA’s model form of agreement and brokers can lodge a complaint with MahaRERA and the authority will give them a hearing,’ Chatterjee said.

The new rules received mixed responses from the construction industry. While it was agreed that the amendments were consumer-friendly, questions were raised on the impact they have on incomplete projects.

Reacting to the amendments, Rohit Poddar, Managing Director, Poddar Housing and Development Ltd said, ‘The decision to eliminate the marketing and brokerage expenses from the cost of development is a good move from a consumer’s point of view. However, it should be subject to scrutiny whether it will have any direct impact on the prices for end consumers. Advertising, marketing, and brokerage costs are a part and parcel of the project cost, and it is recommended that they are included in the project cost, especially for the affordable segment.’

Rajan Bandelkar, President of National Real Estate Development Council (NAREDCO), Maharashtra said, “The amendment is likely to impact the unsold inventory. How does the developer sell these without including the marketing costs in the construction cost?”

Ameya Tandulkar, Chief Operating Officer at Paradigm Realty said, ‘The RERA Act clearly mentions that marketing costs should not be included in the 70 per cent funds meant for construction. This account was always meant to pay for land cost, construction cost, premiums for fungible FSI, and administrative costs incurred by the developer. I think the amended rule only reiterates that developers should not include marketing costs.”

Amit Wadhwani, Co-Founder, Sai Estate Consultants Chembur Private Limited (SECCPL) said, “RERA is definitely paving the way for a transparent sector.”

Source: www.realty.economictimes.indiatimes.com/news/industry/maharera-no-advertisement-expenses-in-construction-costs/69781792

Maharashtra Real Estate Rules 06.06.2019

MahaRERA now opens execution tabs during appeal process

Earlier, MahaRERA website had an inactive tab which prevented a home buyer from filing an online application for non-execution till the 60-day mandated period for appeal was over.

Home buyers who get favourable orders from the Maharashtra Real Estate Regulatory Authority (MahaRERA) will now be able to file online applications for non-execution of these orders even during the 60-day period granted to the developer to proffer an appeal with the Maharashtra Real Estate Appellate Tribunal (MREAT).

Earlier, MahaRERA website had an inactive tab which prevented a home buyer from filing an online application for non-execution till the 60-day mandated period for appeal was over. However, following a writ petition filed by a 69-year-old Kandivali home buyer in the Bombay High Court, MahaRERA has now changed this process, and made the tab for non-execution active. As a result, home buyers will be able to file for non-execution while the developer’s appeal pending or is being heard by the Appellate Tribunal.

“Yes, we have changed that process. Now, we have made the tab active so that the home buyers would be able to file application for non-execution even while the appeal process is on, but we will hear the application only after the mandated 60-day period is over and after checking the status of the appeal with the Tribunal,” said Gautam Chatterjee, chairperson of MahaRERA.

69-year-old Baheti had booked a flat in Kandivali East in May 2015 with the promise of possession by December 31, 2015. When the developer failed to deliver and revised the date to 2023, she filed a complaint with MahaRERA seeking a refund.

In November 2018, MahaRERA asked the developer to refund Rs 6.84 lakh with 10.5 per cent interest. The developer filed an online appeal, but did not deposit the statutory 30 per cent of the refund amount without which the appeal would not be entertained by the Tribunal. When Baheti tried to file for non-execution, the tab on MahaRERA portal remained inactive even after mandated 60 days. Aggrieved by this, she decided to file a writ petition.

“The developer will neither remove the defects in the appeal nor pay the statutory 30 per cent amount and will delay the matter. Further the developer is in a win win situation as the petitioner cannot file an appeal,” her petition said.

Advocate Tanuj Lodha, who represents Baheti, execution pending appeal cannot be denied, unless there is a stay order in Appeal. “The procedure of making online “Non execution of Order” tab inactive on mere filing of an online Appeal (without depositing minimum 30% statutory amount) is being used as a mischief to frustrate the aggrieved homebuyers,” said Lodha.

Meanwhile, MahaRERA has also taken note of more than 176 recovery orders issued against non-complying developers still pending with the District Collectors, and decided to periodically review the pendency and facilitate its implementation. “We had a meeting of all MahaRERA members, and it was decided that we should periodically review the pending recovery orders, and take appropriate decisions,” MahaRERA member Vijay Satbir Singh said.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/maharera-now-opens-execution-tabs-during-appeal-process/69606692

RERA tightens land market in Rajasthan

JAIPUR

The Real Estate (Regulation and Development) Act, 2016 (RERA) has tightened the noose on regulated market in the state, but illegal business of non-regularised plotted colonies on agricultural land, continues to flourish in the state capital, leaving many home buyers in a fix.

Many buyers continue to invest their hard-earned money in these housing schemes without realizing that all their savings may go down the drain. At the time of selling plots, the dealers and their agents lure the home buyers with various facilities such as spacious parks, green belt, potable drinking water, well-constructed roads, sewerage facilities and power connections. Once the plots are sold, the dealers vanish leaving people at the mercy of the agents.

Moreover, these developers do not develop colonies as per norms. Bharat Jain, a victim, said, “As per the initial proposal of the colony, the developer had promised that 60% area of the total land is allotted for plots and the remaining 40% for facilities like parks, roads, community hall etc. In my colony, in Beelwa near Tonk Road in zone 14, the developer duped the customers as 80% of the area is being utilised for plots to earn money. In some plots there is no space left for the construction of roads.”

Jain is not the only one, many people approach Jaipur development authority (JDA) to complain about such colonies. But nothing much can be done as these colonies are not approved by the civic body. A JDA official said, “The illegal colonies have sprung up in large numbers near the Ring Road project. The developers issue lease deeds on newly purchased agricultural land in connivance with the civic body and administrative officials. The maximum colonies have come up in zones that fall outside the city.”

For the regularised market, the urban development and housing (UDH) department has implemented RERA to check the authenticity of housing projects and to ensure that developers fulfill their commitments.

Source: https://realty.economictimes.indiatimes.com/news/industry/rera-tightens-land-market-in-rajasthan/69511907

Show list of builders with escrow accounts: Buyers to UP-RERA

NOIDA

Homebuyers on Tuesday submitted a letter to the Greater Noida Authority and the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera), asking them to make public the names of builders who have opened escrow accounts with the money deposited by investors. The move comes as buyers feel that many builders have not started this financial practice to protect their rights.

“We have written letters to both Greater Noida Authority and UP-Rera, asking them to disclose the names of all such builders with escrow accounts, on the website of UP-Rera for the sake of transparency,” co-founder of Noida Extension Flat Owners Welfare Association (Nefowa) Indrish Gupta told TOI.

The buyers’ group claimed, in its letter, that over the past few months they received complaints from various buyers on the issue of projects which are incomplete and where builders seem to have diverted funds.

“There are over 50-60 projects which are stalled. However, these builders have been taking payments from buyers and most of them have overstepped UP-Rera completion deadline. So, we have asked the regulatory authority to disclose an update on the status of the buyers’ funds with these builders,” Shweta Bharati, general secretary of Nefowa, said.

According to UP-Rera, over 700 builders in Noida and Greater Noida have overstepped completion headlines, with over 100 more expected to follow suit in the next three months.

“We just want to ensure that despite delays, the buyers’ funds are protected,” Gupta added.

When contacted, a GNIDA official said, “Buyers’ requests on the matter will be considered and they can find seek necessary answers from UP-Rera.”

Source: https://realty.economictimes.indiatimes.com/news/residential/show-list-of-builders-with-escrow-accounts-buyers-to-up-rera/69335097

Madhya Pradesh RERA tightens the noose on violators, plaints drop 40%

INDORE

Madhya Pradesh Real Estate Regulatory Authority (RERA) has witnessed a sharp drop in cases from Indore in the past two months with number of complaints dropping to 60 per hearing as against over 100.

Of the three RERA centres in the state, Indore gets highest number of complaints from customers, followed by Gwalior and Jabalpur. But in past few months complaints have reduced.

RERA member A D Kapaley said, “Cases have dropped significantly from over 100 to just 50 to 60 per hearing. This is a good sign indicating increased compliance resulting in fewer grievances from the customers.”

RERA hears cases thrice in a month in Indore as against once in a month in Gwalior and Jabalpur. Most of the cases in Indore are related to delay in possession for residential property, lack of development and unfulfilled promises under a deal.

Kapaley said, “Most of the cases in Indore were related to a few projects after the promoter duped hundreds of customers. As they are getting resolved gradually, new complaints are very few and this is really a good sign.”

Recently, the authority sent notice to an Indore-based realtor for not keeping promises made to customers even after receiving 80% of the payment.

Kapaley said, “Complaints were brought to our notice after which sent a notice to builder and denied registration in RERA for any future projects when he approached the authority for extension of his existing projects.”

In the total 45 cases received by the RERA against the realtor, it directed promoters to return money to customers. Until now over a dozen of customers have received demand drafts from the promoter.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/madhya-pradesh-rera-tightens-the-noose-on-violators-plaints-drop-40/69317729

UP-RERA directs authorities to start registration of projects

Noida

The Uttar Pradesh real estate regulator has asked local authorities to start the registration process of realty projects under the RERA Act for making builders accountable and addressing rising complaints from buyers in the state.

UP Real Estate Regulatory Authority chairman Rajive Kumar in a statement said the authority has received about a 1,000 complaints with respect to projects and promoters from outside the planning areas mainly from the districts of Lucknow and Barabanki.

The complaints vary from non-implementation of the projects to the promoter having run away with the money of the buyers, he said.

The RERA Act applies only to the real estate projects with area of 500 sq metres or more and with eight apartments or more in planning areas.

“RERA cannot extend relief to such buyers unless the project can be registered in Rera and invited the attention of the participating officers to the provisions of Section 3 of the Rera Act wherein a provision has been made that in order to protect the interest of the buyers it can direct a promoter to register in Rera a project outside planning area and that the provisions of Rera will apply to such a project from the date of its registration in RERA,” he added.

The UP RERA chief held a meeting at the RERA office in Greater Noida to discuss approval and regulation of layout plans of the real estate projects outside the planning areas.

The meeting was attended by Anurag Srivastava, Principal Secretary of Panchayati Raj, Mahendra Prasad, Secretary of Industrial Development and CEO LIDA, Preeti Shukla, Secretary of Panchayati Raj, Ajai Chauhan, Housing Commissioner, Masoom Ali Sarvar, Director of Panchayati Raj, MP Singh, Secretary of Lucknow Development Authority, among others.

Kumar, however, clarified that a project can be registered in Rera only if the layout plan of the project has been approved by the concerned local authority, which means zila panchayat in most of the cases.

Rera has already engaged UP Remote Sensing Application Centre for carrying out the site inspection of real estate projects within 10 km of LDA limits in the districts of Lucknow and Barabanki with the help of satellite data, according to the statement.

Anurag Sivastava, principal secretary, said in some of the Zila Panchayats the bye-laws relating to the approval of the projects have not been adopted so far.

However, he assured to direct the districts concerned to adopt the bye-laws soon.

“They will also work effectively to check the breaches of the sanctioned plans or the development of real estate projects without required approvals,” according to the statement. The progress would be reviewed next month, it added.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/up-rera-directs-authorities-to-start-registration-of-projects/69335068

MahaRERA still has jurisdiction over projects that have an OC

Housing regulator rules in favour of home buyer seeking damages from developer in lieu of a project whose possession was delayed by two years.

Housing regulator Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered a developer to pay a home buyer interest for delaying the project.

While ruling in favour of the home buyer, the authority stated that it has jurisdiction over an ongoing project even after an Occupancy Certificate was issued to the developer, adding that it can adjudicate the dispute despite an arbitration clause in the agreement.

The ruling came on a complaint filed by Suresh Swamy, who had booked flat No. 301 in Tower T8 of Emerald Isle project in Powai where he was supposed to move in by September 2017. He was seeking interest on the amount he had paid till actual possession. MahaRERA ruled in Swamy’s favour directing developer L&T Ltd to pay simple interest at 10.75 per cent on a sum of Rs 4.69 crore from October 1, 2017, for delayed possession.

Advocate Manish Gala, appearing for L&T Ltd had argued that the authority had no jurisdiction in the matter due to three key factors. Firstly, they argued that the Occupancy Certificate for Tower T8 had been received on December 21, 2018, well ahead of the December 31, 2018 revised possession deadline given to MahaRERA and hence there was no delay. The developer said the project is complete and since it is not an ongoing real estate project, the Authority does not have jurisdiction to entertain the complaint.

Secondly, the developer contended that the agreement for sale was executed under Maharashtra Occupation of Flats Act (MOFA) and Section 18 of RERA cannot be applied retrospectively. Thirdly, the agreement for sale had an arbitration clause and hence the dispute should be referred to the Arbitrator under Section 7 of Arbitration and Conciliation Act, 1996.

Adv Anil Dsouza, appearing for the home buyer pointed out that the OC was a Part OC issued by the BMC and the developer was erroneously using the term.

Rejecting the argument that it no longer has jurisdiction after OC is received or possession is offered, MahaRERA member Bhalchandra Kapadnis cited several sections in RERA to support his point. He said Section 7 and 8 of RERA obligates the Authority to carry out remaining development work if the registration of the projects gets revoked. He said section 14 (3) of RERA provides that if any structural defect or quality defect is found within five years from the date of possession, the promoter is duty bound to rectify such defects without further charge within 30 days.

“Therefore, I hold that the jurisdiction of the Authority is not lost only because of the receipt of the occupancy Certification or on completion of the project or when the possession is offered,” he observed. He cited the HC judgment in Neelkamal Realtors case to rule that RERA provisions are applicable to agreements executed even before it came into operation on May 1, 2017.

Source – https://realty.economictimes.indiatimes.com/news/regulatory/maharera-still-has-jurisdiction-over-projects-that-have-an-oc/69300982

Tamil Nadu RERA to publish plaints against builders

Chennai

Homebuyers can now be doubly cautious and steer clear of dubious developers soon as the Tamil Nadu Real Estate Regulatory Authority (TNRERA) will list the complaints filed against developers on its portal.

Buyers can make use of the information made public. So far, only the final orders of the authority over issues with housing projects were available on the TNRERA website. “Currently, we are uploading only the final orders of the complaints. Now, the feature providing details of complaints will be made available for the benefit of homebuyers,” an official from TNRERA told TOI.

TNRERA sources said the information would be added to the ‘complaints’ link on the homepage of the authority’s website.

“We are looking at introducing this feature in another 15 days or by June. The purpose is to make the portal transparent, such that the consumer gets details of complaints at the click of a button,” the official added.

Details such as name of the complainant, nature of the grievance, the developer’s name and the name of the housing project would be provided in the link. The prayer for which the complaint has been filed would also be provided. This would help prospective buyers to take a considered decision on whether to invest in the project.

The realty regulator has received about 750 complaints against 55 housing projects since its inception in June 2017. More than 90% of the housing projects against which complaints were filed were in and around Chennai. The authority has delivered final orders for 40 complaints in the past two years.

TNRERA came into existence after the state government notified the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017. As per the rules, registration of all ongoing housing projects with a minimum of eight units and new residential layouts, is mandatory. Till April, 980 housing projects and layouts have been registered with the TNRERA since its inception. Majority of these projects are in Chennai and its periphery, Kancheepuram and Tiruvallur districts.

Source – www.realty.economictimes.indiatimes.com/news/industry/tamil-nadu-rera-to-publish-plaints-against-builders/69277392