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 secy@maharera.mahaonline.gov.in,” 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.”

Source: https://www.moneycontrol.com/news/business/real-estate/mc-explains-six-things-you-need-to-know-about-proposed-deregistration-of-88-real-estate-projects-in-maharashtra-10744691.html

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.

Source: https://indianexpress.com/article/cities/mumbai/405-real-estate-agents-clear-maharera-test-8637662/

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.

Source: https://www.newindianexpress.com/states/kerala/2023/may/26/k-rera-wants-government-to-block-saleof-plots-not-registered-with-it-2578652.html

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.

Source: https://www.constructionworld.in/latest-construction-news/real-estate-news/deregistration-okayed-for-two-projects-in-state-by-maharera/40969

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.

Source: https://www.moneycontrol.com/news/business/real-estate/credai-ncr-wants-state-development-authorities-to-be-brought-under-rera-as-promoters-10536551.html

Rajasthan Realtors not Filing Quarterly Progress Reports

Many realtors in the state are not adhering to the Rajasthan Real Estate Regulatory Authority (RERA) mandatory norm of filing online quarterly progress report (QRPS) of their registered projects.

According to mandatory provisions, a promoter must upload updates on the RERA website for the project at the end of each quarter on apartments/flats, status update of each building, floor, internal infrastructure, and common areas construction. Other details including information on approvals, bank account details, revision in plans, licence issues, permits or approvals for the projects also must be displayed in public forum. The body (RERA- Raj) had launched online facility for submission of QPR of registered projects. However, the rule is violated by the developers. A source in RERA said cases came to fore where developers had not submitted QRP for two years. After the non-submission of QPRs since June 2020 to March 2022, a notice under Section 11 (1) (e) of Real Estate (Regulation and Development) Act, 2016 was issued against the one promoter on July 11, 2022, but neither required QPRs was uploaded on web portal of the authority nor any response in this regard was made available to the Authority.

“QRP is a transparent procedure, which also keeps investors of the project informed and tells the financial health of the developers. However, if it is not uploaded on time, it certainly makes buyers anxious,” said a source. The Maharashtra Real Estate Regulatory Authority (MahaRera) recently made it mandatory for developers to upload a self-declaration form containing details of their projects across the country along with information that includes if any project has been shelved and if any warrant has been issued by Rera that buyers can access. Source said, “Same directions should be issued here in Rajasthan. But instead, of taking progressing steps, RERA – Raj has failed to take stringent action against developers to safeguard the buyers’ rights. Builders in the state are fearless,” a source added.

Source: https://timesofindia.indiatimes.com/city/jaipur/rajasthan-realtors-not-filing-quarterly-progress-reports/articleshow/99897549.cms

Govt Wants Real Estate To Be Fair & Transparent With A Buyer-Builder Agreement Model Across India

Secretary of Consumer Affairs Ministry, Rohit Kumar Singh said that the government has decided to form a committee to work on a model builder-buyer agreement to simplify the home-buying process and protect homebuyers from potential abuses.

Model Builder-Buyer Agreement To Simply the Home-Buying Process

He said this after the first Round Table Conference on How to Effectively Redress the Grievances Pertaining to Real Estate Sector, in Mumbai on Tuesday.

He said that this builder-buyer agreement could help reduce disputes between home-buyers and builders, and ensure that consumers have access to an effective, speedy, hassle-free, and inexpensive grievance redressal mechanism.

He added that by putting these measures like model buyer-builder agreements and effective grievance redressal mechanisms in place, the backlog of cases can be redressed and ensure that home-buyers are treated fairly and protected from potential abuses in future.

With members drawn from the National Consumer Commission, state consumer commissions, Real Estate (Regulation and Development) Act, 2016 (RERA), Department of Consumer Affairs (DCA), Insolvency and Bankruptcy Board of India (IBBI) and builders as members to address the grievances of home-buyers and enhance consumer protection.

Speaking about the timeline of the formation of the committee, he said that they would “try and do it in the next three months. Stakeholders have to be collected from different sectors. It will be a landmark thing if it is done as it will at least give uniformity in handling of this sector across the country. It will be a template,” he said.

The disputes that exists between the home buyers as well as the developers could be resolved to some degree if the contract between the builders and buyers is standardised and uniformity is brought about. Singh said that the document should be unique as well as applicable across the country.

If this is done, the problem can be solved to some extent.

It was in association with the Government of Maharashtra that the roundtable was hosted by the DCA. He said that it was also the Supreme Court (SC) which had directed the need of having a model agreement across the country, and added that some states already have such a document in place.

There is an alarming need to put a system in place for the speedy justice and streamlining the process for homebuyers as it was seen that out of over 5.5 lakh cases currently awaiting resolution, over 54,000 cases relate to the housing sector.

These cases are due to various issues, 45% due to delay in possession; 12% to execution of sale deed, refund and withdrawal from project 12%; amenities 12%; and poor construction quality 12%, among others issues.

The Maharashtra Consumer Commission is faced with the maximum number of cases at 15,154 cases filed. Of this, about 8,718 have been disposed of, while 6,436 are still pending. In Delhi, 8,178 cases have been filed, of which 5,266 have been disposed of, and 2,912 are still pending. In Uttar Pradesh, 8,133 cases have been filed, of which 7,024 have been disposed of, and 1,109 cases are pending, show statistics from the ministry.

He also said that the agreement should be in simple language. “It is the common man who is buying. Therefore, the engagement between the buyer and the seller should be as simple as possible.”

Key Issues & Key Suggestions

The key issues identified by the home-buyers are:

• Delay in delivery of possession of property to home-buyers

• No compensation for delay in possession to home-buyers

• Biased, one-sided, and unfair builder-buyer agreements

• Amenities not provided to home-buyers as per the agreement

• Misleading advertisements by developers and influencers for luring home-buyers

• Non-adherence to the model builder-buyer agreement proposed by RERA.

The key suggestions to fix these were

• Sending draft agreement to buyers before execution

• Clearly mentioning permissions and sanctions obtained from competent authorities on the first page of the agreement

• Prohibiting builders from launching projects before obtaining all necessary permissions and sanctions

• Including an exit clause for home-buyers in all agreements that would be valid until the Occupancy Certificate (OC) or Completion Certificate (CC) is obtained and possession is offered by the builder

• Including a schedule of additional charges beyond the cost of the unit/apartment in all agreements.

• Include mandatory declarations regarding no dues from any authority/banks

• Necessary legal sanctions and approvals from competent authorities

• Strong action should be against unfair and misleading advertisements by developers

Source: https://trak.in/stories/govt-wants-real-estate-to-be-fair-transparent-with-a-buyer-builder-agreement-model-across-india/

Centre to host Conference in Mumbai on redressing Property Buyers’ Grievances

With the real estate sector contributing around 10 per cent to the total cases in consumer commissions, the Department of Consumer Affairs will on Tuesday organise a round table conference in Mumbai to discuss ways to redress the grievances of property buyers.

According to an official statement, the Department of Consumer Affairs is organising a round table conference on “How to effectively redress the grievances pertaining to the real estate Sector” in Mumbai on April 18.

The conference will be organised in association with the Maharashtra government.

Rohit Kumar Singh, Secretary, Department of Consumer Affairs, Government of India, will chair the conference.

“Pertinently, Real Estate cases comprise around 10 per cent of the total cases in Consumer Commissions. So far, since inception, 2,30,517 cases have been filed by the consumers in various consumer commissions, 1,76,895 cases have been disposed of till now, and 53,622 cases are pending,” the statement said.

Despite separate tribunals, such as RERA and NCLT, to deal with the cases pertaining to the housing sector, the pendency of cases is rising in various consumer commissions, the department said.

“It is for the first time, the Department is conducting such a large-scale conference to redress the consumer grievance in the real estate sector,” the statement said.

The conference will discuss — systemic policy interventions required to reduce litigation in the housing sector. In this regard, the cases filed in the Consumer Commissions would be analysed, and major factors that result in consumer cases will be identified and presented for deliberations.

“In addition, why more number of cases are filed before Consumer Commissions despite there being separate authorities, such as RERA, for specifically dealing (with) the cases pertaining to the housing sector will also be discussed. Meanwhile, deliberation on how to ensure that the housing sector cases are dealt with in an effective and speedy manner will also be done,” the statement said.

Members of the National Commission, Presidents of State Commissions of Maharashtra, Uttar Pradesh, Delhi, Haryana, Chandigarh and Gujarat; President of the RERA Appellate Tribunal Maharashtra; RERA Chairmen from Delhi and Maharashtra; Presidents of District Commissions of Delhi, Bengaluru, Thane, Pune, Raigad and Chandigarh are likely to participate in the conference.

Representatives from MOHUA (Ministry of Housing and Urban Affairs), RERA, IBBI, Government of Maharashtra, ASCI, and all the VCOs (voluntary consumer organisations) and builders fraternity will also be present.

Homebuyers’ body Forum For People’s Collective Efforts (FPCE) President Abhay Upadhyay, who is also an invitee to the conference, has welcomed the move to organise such an event.

He hoped that the department will frame a legal framework to ensure that homebuyers get speedy resolution of their disputes.

“We are all aware that despite the regulator in place for the sector after the enactment of the Real Estate (Regulation and Development) Act 2016, (RERA) malpractices prevalent in the sector have not completely come to an end.

“We are also witnessing that homebuyers are running pillar to post for justice even after having favourable orders from RERA as builders are refusing to obey the orders of RERA, and sadly even after six years of full implementation of RERA, we have failed to find a solution for this burning issue,” Upadhyay had said earlier this month.

Source: https://www.hindustantimes.com/real-estate/centre-to-host-conference-in-mumbai-on-redressing-property-buyer-grievances-101681725967685.html

Up RERA Appoints Cushman & Wakefield As Consultant

The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has appointed Cushman & Wakefield to help resolve issues of dues owed by developers and revival of stalled projects in Noida and Greater Noida.

Builders in the state owe an estimated Rs 40,000 crore to the Noida and Greater Noida authorities and the Yamuna Expressway Industrial Development Authority in the form of premium, interest, and penal interest against plots allotted for real estate projects. Thousands of homebuyers in Noida and Greater Noida have been unable to register their homes because the builders have not paid their dues.

UPRERA chairman Rajive Kumar said that the consultant will carry out an in-depth analysis of the projects in Noida and Greater Noida and come up with possible solutions so that homebuyers can get their houses expeditiously. He said the consultant will submit its report this month, after which UPRERA, in consultation with the state government, would take a decision on the matter.

Non-payment of dues by builders is one of the driving forces behind disputed projects in Noida and Greater Noida. So, both the issues are interlinked and ultimately homebuyers are suffering. This is UPRERA’s initiative to end this logjam.

An UPRERA official said the consultant has sought representation from the Confederation of Real Estate Developers’ Association of India (CREDAI) and the National Real Estate Development Council (NAREDCO) over the issue of clearing pending dues. He said UPRERA officials are likely to meet representatives of developer bodies and officials of the Noida and Greater Noida authorities.

Source: https://www.rprealtyplus.com/news-views/up-rera-appoints-cushman-wakefield-as-consultant-110179.html

Orissa HC issues restraint order on RERA’s registration fee notification, provides relief to builders

In a major relief to the builders, the High Court has issued a restraint order on the registration fee hike notification issued by the Odisha Real Estate Regulatory Authority (RERA).

The hearing came on a petition filed by the Confederation of Real Estate Developers’ Association of India (CREDAI).

As per the rule of the RERA, when a builder seeks permission to construct eight or more flats, he has to get the project registered. Earlier, to register their projects, the builders had to deposit Rs 10 per square meter.

But on July 28, 2022, the RERA issued a notification announcing that the registration fee has been hiked from Rs 10 to Rs 200.

Challenging this, the State chapter of the Confederation of Real Estate Developers’ Association of India (CREDAI) moved the Orissa High Court, praying for the cancellation of the notification. They alleged in their petition that the RERA doesn’t have any right to hike fee. The government can instead do this.

While hearing the petition today, the State’s apex court directed the Odisha government and the RERA to furnish their responses.

The court also directed the RERA to deposit the money if collected in a bank account with accruing annual interest until the final judgment. If the final judgment goes against the RERA, the money will be refunded or vice versa.

Source: https://odishatv.in/news/odisha/orissa-hc-issues-restraint-order-on-rera-s-registration-fee-notification-provides-relief-to-builders-200862