Assam RERA Mulls Starting Grading System For Real Estate Projects

GUWAHATI: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to implement a grading system for housing projects across the state. The initiative aims to empower homebuyers in filtering out unprofessional developers while providing them with a better understanding of project suitability and quality. Along similar lines, the Assam Real Estate Regulatory Authority (RERA) is also contemplating starting the grading system in Assam.

A senior official of RERA said, “According to the guidelines prepared during the formation of RERA, starting grading system for real estate projects is one of the most important responsibilities for the body,” adding that the body now is contemplating to start the grading system and for the purpose an “analysis” is ongoing.

The official further opined that before RERA it would have been great if the state government could have formulated a policy which could have started “marking” the real estate projects.

The official said that to start the grading system various aspects of the projects will have to be studied. The study for grading will include a project overview, technical snapshot, financial details, and legal snapshot, said the official adding that the system have to consider the promoters’ compliance track record, legal litigations, project finance quality, amenities, the status of statutory approvals, booking percentage, financial and legal encumbrances, and audit certification, among other criteria. “Such information is typically inaccessible to homebuyers or rarely provided by builders,” said the official.

The official said that RERA receives maximum complaints regarding parking and visitors parking in apartments. “There should be 25% of parking space in any apartment allotted to visitors,” said the official and selling parking space is not legal. He stressed that once the grading system starts, all these issues will be easily taken care of.

The official questioned the process by which authorities like Guwahati Metropolitan Development Authority (GMDA) and Guwahati Municipal Corporation (GMC) issue permissions as according to the official many projects across Assam “violate” building bye-law norms.

The introduction of the grading system aims to assist homebuyers in making more informed decisions said the official by considering factors like financial risk, legal risk, technical risk, and timely completion risk, adding that potential investors can better understand the projects they are considering to buy.

The Assam RERA official said that if the grading system starts in Assam, the process vsill be very transparent and public opinion on the grading system will be taken before starting the process.

In Maharashtra, the grading process is scheduled to commence between October 2023 and March 2024. Initially, all projects registered from January 2023 onwards will undergo grading. Subsequently, the Maha RERA authorities plan to establish a matrix for grading promoters. The first round of grading results is expected to be announced on April 20 next year.

The Assam RERA official said that global examples of successful grading systems in Singapore, Australia, and Dubai have resulted in a better real estate environment there and the grading system in Assam also ensure better projects.

The officials are now studying all aspects of the grading system and a decision be made in a couple of months.


Builder & Buyers to Finish Project Stuck Since 2014

NOIDA: The developer and homebuyers will come together to complete 985 flats in a housing society that has hardly seen any development in the past decade.

The move follows an order by UP-Rera to allow the developer of Antriksh Sanskriti and the association of allottees to jointly complete the first phase of the project under its watch. Off NH-9 in Chhajarsi village, Sanskriti was launched in 2010 and was to have 1,600 flats across three phases.

The project, however, has been stalled since 2014, with 985 flats yet to be constructed in the first phase itself. While the registration of phase 1 lapsed in April 2019, those of phases 2 and 3 were revoked by the Ghaziabad Development Authority (GDA) in June last year over mounting dues.

According to a plan submitted to Rera during the hearing, Rs 227 crore may be used to complete the three phases of Sanskriti. A total of Rs 328 crore is expected to be raised from the project — a contribution of Rs 20 crore from the promoter upfront, Rs 67 crore receivables from existing allottees and Rs 241 crore from the sale of flats.

Rera has asked the developer, Antriksh Realtech, and Antriksh Sanskriti Welfare Association (the association of allottees) to complete the project by June 2025.

The regulatory authority has laid down a few strict conditions so that the project is completed in time. For instance, the association will have to enter into an agreement with the promoter and submit a copy to Rera within 15 days of the order. The association will also have to submit details of its office-bearers, the consent of at least 50% of the allottees and the complete project plan.

In terms of funds, the developer will have to deposit Rs 20 crore upfront in a separate account. Of that, Rs 9.2 crore will have to be paid to GDA and the remaining amount could be used to start construction.

A committee under UP-Rera chairperson T Venkatesh will monitor the progress of the project.

“Once the promoter clears the dues, GDA will allow the project to be developed. After that, we will have to get the layout sanctioned once again. If all goes according to the plan, we hope to start construction by the middle of August,” said Jiten Kumar Dalai, the president of the association.

It was in 2017 that the buyers moved Rera regarding the delay in handing over flats. Last year, the association submitted a plan to complete the remaining flats. Rera then considered the proposal for the buyers and Antriksh Realtech to jointly construct the project.

Rakesh Yadav, the director of Antriksh Realtech, said the project was still viable and they would complete the work within the time frame. “Altogether, 1,600 flats are supposed to be built across three phases, with 985 in the first one,” he added.

RD Paliwal, conciliation consultant at Rera, said, “The project is moving in the right direction with collaborative approach of all stakeholders. The parties should abide by their commitments to complete the project in time.”Rera chief Venkatesh said Sanskriti was the 17th such project in the state where the developer and buyers had come together to complete it. “We are examining the possibility of facilitating the completion of more such projects.”


UP real estate regulator issued 8,800 recovery certificates worth about Rs 2,400 crore since 2018

The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has issued nearly 8,800 recovery certificates (RCs), collectively amounting to around Rs 2,400 crore since 2018.

Out of this, RCs worth about Rs 1,200 crore have been resolved through recovery and settlement, the Authority data showed.

A recovery Certificate is a request letter from the RERA Authority addressed to the concerned district collector requesting to recover the specified amount from the defaulting builder as arrears of land revenue under the Revenue Code and to pay the amount to the entitled complainant allottee.

According to data provided by the UPRERA, as many as 2,500 RCs worth over Rs 800 crore were issued by the Authority in the financial year 2022-23 alone. In the financial year 2022-23, Rs 394.26 crore has been collected by the Gautam Budh Nagar district administration against RCs issued across the state and Rs 353.37 crore has been transferred to the allottees.

These statistics were released at the 125th meeting of UPRERA, held in Lucknow recently under the chairmanship of Authority’s Chairman Rajive Kumar. The meeting also marked Kumar’s last day as UPRERA Chairman.

“Overall recovery certificates worth about Rs 1,200 crore have been resolved by the administration through recovery and mutual consent and this is the highest among all RERA institutions (across the country). A quick jump has been noticed in the recovery of RCs after Covid-19 and FY 2022-23 has contributed approximately 33 percent (of the recovered amount) since 2018,” the Authority noted.

Gautam Budh Nagar leads the data also showed that as many as 3,400 projects have been registered with the real estate regulator across the state with Gautam Budh Nagar leading the chart. Gautam Budh Nagar district has a maximum of 945 projects registered with the UPRERA followed by Lucknow with 702 projects and Ghaziabad with 418.

Set up in May 2017, the UPRERA is tasked with protecting the interests of homebuyers, bringing in transparency and ensuring speedy resolution of disputes between homebuyers and developers.

The Authority said it has successfully disposed of 88 percent of the total around 49,000 complaints across the state. UPRERA alone has disposed of almost 43,000 complaints across the state. Approximately 1.07 lakh complaints have been received by RERA authorities in India since 2017, it stated.

Gautam Budh Nagar topped the list of top 10 districts in complaints disposal across the state with the redressal of 25,803 complaints. It was followed by Lucknow with the disposal of 8,504 complaints and Ghaziabad with the settlement of 5,750 complaints.

The Authority also said that properties worth about Rs 485 crore have been made dispute-free by resolving more than 1,200 cases through the conciliation forum since 2018.


Verification of Commencement Certificates Mandatory for Registration of Projects: MahaRERA

The Maharashtra Real Estate Regulatory Authority (MahaRERA) will not register any new real estate project unless the commencement certificate is verified by local planning authorities.

Local authorities such as Corporations, Councils, Nagar Panchayats and Metropolitan Planning authorities were given time till 19 June, 2023, with the option of either integrating their website with MahaRERA or sending independent mails regarding project registrations.

The commencement certificates now received from local authorities will be compared with those provided by the respective developers and only after the completion of this procedure, registration will be granted.

The initiative has been taken in the light of the growing number of fraud cases in which several developers submitted fake documents to obtain MahaRERA registration certificates.

A construction permit in the form of a commencement certificate issued by a competent authority allows the promoter to begin the development works on an immovable property as per the project plan.


RERA Warns Builders To Display Registration Details On Project Advertisements

In a strict warning to the builders in Guwahati, the Real Estate Regulatory Authority Assam (RERA) has directed the builders to display RERA registration numbers, project names and website addresses on the hoardings, banners and advertisements of the projects.

“It has come to the notice of the authority that many builders have been putting up hoardings, banners, advertisement of the real estate projects without displaying the RERA registration number, project name and website address,” the RERA order stated.

The order further mentioned that this is in violation of section 11 (2) of the Real Estate (Regulation and Development) Act 2016 and the Rules and regulations framed there under.

“All builders are therefore directed to display their RERA registration number, project name, website address in their advertisements, banner, and hoardings in their project site immediately,” the order further stated. The order said that non-compliance with these instructions will attract the provisions of Section 61 of the Real Estate (Regulation and Development) Act 2016.

It needs to be mentioned that there are many real estate projects across Guwahati where the RERA registration details of the projects are not mentioned in the hoardings or any other advertisements.

A manager of the under-construction apartment site at Jyotikuchi where the RERA registration details were not displayed talking to G Plus on condition of anonymity said, “Our project is registered with RERA but we did not know that it is mandatory to display the registration details,” adding that they will soon display all the details.

Assam Real Estate and Infrastructure Developers’ Association (AREIDA) president PK Sharma talking to G Plus said, “It may have been omitted due to oversight since all projects displayed are already registered.”
The Real Estate Regulation & Development Act was brought to India in May 2016 after a decade of real estate being tormented at the hands of powerful builders.

Now, the RERA Act mandates all ongoing and new RERA projects to register with respective RERA Authorities under the ambit of the Act.

In the case of the non-registration, they will attract penalties under the Act. It is mandatory to have RERA registration for builders of real estate projects with RERA Authorities. In case they fail to comply with the quarterly compliance as mandated under the Act and Rules, they may have to face a complaint filing against them.


Six things you need to know about proposed deregistration of 88 real estate projects in Maharashtra

Eighty-eight real estate developers have applied to the Maharashtra Real Estate Regulatory Authority (MahaRERA) for deregistration of their real estate projects, following which the regulator has sought objections, if any, from stakeholders.

MahaRERA had in February 2023 allowed deregistration of projects that were unviable or are were in trouble. Only projects in which claims of the homebuyers or other concerned stakeholders have been settled can be deregistered.

1) What does MahaRERA say?

In an order dated June 2, 2023, MahaRERA said promoters of 88 projects had applied for their deregistration. “Any person/legal entity having any objections to the deregistration of the real estate projects as mentioned in the displayed list are hereby called upon to submit their objections within 15 days from the date hereof. The objections be submitted to the following email,” it said.

2) What are the prominent projects proposed for deregistration and developers who want to deregister them?

According to a list issued by MahaRERA, Kalpataru Group wants to deregister Kalpataru Centrino in Yerwada, Pune. Arihant Superstructures Limited wants to deregister Arihant Aakarshan Phase-2 in Navi Mumbai followed and Hubtown Group the Solaris project in Mumbai and Siddhi in Thane.

Hubtown could not be reached for a comment. Queries sent to Arihant did not elicit a response. The 88 projects are located in the Mumbai Metropolitan Region, Pune and Nagpur.

“We would like to clarify that the said entire land parcel (admeasuring approx. 5855.80 sq. mtrs. plus open space area adjacent thereto) was sold during Q2 of last financial FY 22-23. Further, we have not sold any units nor received any advance in relation to any unit(s) in our erstwhile project, Kalpataru Centrino. Therefore, the project is required to be de-registered, suspended or cancelled in accordance with the applicable regulations,” Kalpataru said in a statement.

Post the aforesaid sale of land, registration of the said project has become infructuous. Accordingly, we have duly applied for the de-registration of the project with MahaRERA as same is no more required in accordance to the order, regulations and process set by MahaRERA, it said.

3) What is the provision for deregistration?

MahaRERA said that under Section 34 of the Real Estate (Regulation and Development) Act, one of its functions is to register and regulate real estate projects and real estate agents. There are instances of developers registering projects on which they are unable to commence and complete construction, requiring the regulator to deregister them, it said.

4) Under what circumstances is deregistration allowed?

Lack of funds, projects not being economically viable, litigation, disputes including family disputes, and changes in government/planning authority notifications are some of the reasons cited for deregistration of real estate projects. In such cases, keeping these projects registered with MahaRERA will serve no useful purpose, nor would they be beneficial to any stakeholders, MahaRERA said in its February 2023 order.

5) What are the conditions for deregistration?

MahaRERA has listed four conditions under which real estate projects can be taken up for deregistration. The first is a real estate project that has zero buyers and the second is one in which the part that is sought to be deregistered has no allottees.

The third condition is that projects which have bookings shall be considered for deregistration if the rights of such allottees are settled by the promoter and documents to that effect are submitted for verification.

The fourth condition is that when de-registration of part of a real estate project affects the rights of the rest of the allottees in the balance part of the project, two-thirds of the allottees provide their consent for deregistration.

6) Is it an easy way out for developers?

According to legal experts, the deregistration applications should be considered only if the conditions laid down by MahaRERA are being followed by the developers to ensure they do not misuse the provision.

“As per the spirit of the MahaRERA circular issued regarding deregistration, these applications should be considered as per the conditions laid down in the Circular. Interest of homebuyers, financial institutions etc will remain protected provided conditions of the circular issued by MahaRERA are followed,” said Trupti Daphtary, a lawyer based in Mumbai.

She added: “This is a good move by MahaRERA and a wider publicity of this information will help the applications to be decided after consideration of the objections received. Further, other states must also borrow from these practices to allow applications only after following a prescribed procedure keeping in mind the rights of all stakeholders.”


405 Real Estate Agents Clear MahaRERA Test

Of the 423 real estate agents who appeared in the first-of-its-kind certification examination organized by the Maharashtra Real Estate Regulatory Authority (MahaRERA), 405 have cleared the test.

As per a recent order issued by the regulatory agency, it is mandatory for all 39,000 agents registered with MahaRERA and unregistered agents to obtain the MahaRERA certification by September 1 to practice as property agents.

A MahaRERA official said that the objective to have certified real estate agents is that they play an important role as mediators between the seller and the buyer and,they should be well informed about the decisions and new rules introduced by MahaRERA.


K-RERA wants government to block sale of plots not registered with it

The sale of development plots not registered with the Kerala Real Estate Regulatory Authority (K-RERA) may face hurdles if the government approves a recommendation by the K-RERA. The authority has written to the chief secretary seeking a directive to the registration department not to allow sales deed registration of such plots not registered with the RERA.

As per law, development projects that exceed 500 sq m of land or those with more than eight apartments, villas or plots require mandatory registration. But many realtors skip the rule contending that registration was not required for projects that did not meet both criteria. Now, the RERA has issued a clarification that each of the criteria is standalone and has warned of penal action against offenders.

Tamil Nadu issued such a directive to sub-registrars and the level of compliance with the law in that state has increased significantly, the letter said. The government is yet to take a decision on the matter. If approved, the rule will pave the way for near-total compliance in the realty sector.

It will also increase the government’s revenue from stamp duty and registration because, usually, actual sales will be recorded in the agreement. Details in the sales deed, like the extent of the property and accessibility details, will help sub-registrars ascertain whether it is a real estate project requiring RERA registration.

“The issue was flagged by some customers who booked units in unregistered projects. Also, we identified many violations by browsing social media advertisements. Suo motu action was taken against them. We hope that the clarification will result in more compliance. More buyers will get protection under the provisions of the Kerala Real Estate (Regulation and Development) Rules, 2018,” K-RERA chairman P H Kurian said. Delhi and Rajasthan had issued this clarification earlier.

Offenders will face a penalty of up to 10% of the project cost. The RERA is now working in tandem with the local self-governments to book violations. LSG secretaries have been asked to pass on information about projects which do not have K-RERA registration and the mandatory permit from LSGs. All real estate projects, irrespective of their threshold, require a permit from the local self-government.


Deregistration okayed for two projects in state by MahaRERA

According to officials, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has approved the deregistration of two projects in the state out of a total of 60 applications received for the same.

The authority issued an order in February allowing developers to deregister their projects under specific conditions. The procedure has been permitted because many developers are unable to begin and complete building construction.

Deregistration of real estate projects with no allottees (homebuyers) is now permitted under MahaRERA. If there are homebuyers, deregistration will be considered only if the developer resolves the homeowners’ rights and claims, according to the ruling issued on February 10 of this year.

According to the authorities, while two developers have been allowed to deregister under the conditions outlined above, the remaining 58 petitions are being reviewed. “We are carefully reviewing all applications.” “We have only allowed the deregistration of two projects so far,” stated a MahaRERA official.

Homebuyers added that if projects are deregistered, it should be noted on the MahaRERA website, and a notice should be posted at the building site. “The authority should ensure that the developers explain the reasons for not proceeding with the project on their website and they should also indicate the same at the construction sites,” said advocate Godfrey Pimenta, trustee of the Watchdog Foundation.


CREDAI NCR wants state development authorities to be brought under RERA as ‘promoters’

The Confederation of Real Estate Developers’ Association of India (CREDAI), NCR, has demanded that various state development authorities be brought under the ambit of the Real Estate Regulatory Authority (RERA) and be treated as “promoters” for their land allotment schemes, so that their accountability can be fixed.

On May 5, CREDAI, NCR, appealed to the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) to register and regulate the various state development authorities, such as the Noida Authority, the Greater Noida Authority, etc, under the Real Estate (Regulation and Development) Act, 2016.

The developers’ body said that once the registration of allotment schemes of state development authorities is made mandatory they will have to adhere to the RERA’s timelines, which will result in buyers getting their homes on time.

Gaurav Gupta, Secretary, CREDAI-NCR, said the move was prompted by several instances where land was allotted to the developer but possession could not be given because of encroachment or other issues, causing a delay in the completion of the project.

He said that whenever a project gets delayed either due to faulty land acquisition by the Authority or encroachment of land, the developer is held responsible and homebuyers suffer, while no accountability is fixed on the state development authorities.