Home buyers to pay in accordance with a project’s progress: MP-RERA


Government boards and authorities involved in housing projects cannot charge money from buyers in a fixed date linked schedule — a practice common in Madhya Pradesh till now. Boards and authorities will now charge money on the basis of the completion stages of a project or in construction-linked payment module.

After coming across several complaints related to housing projects by government organisations, the Real Estate Regulatory Authority (RERA) observed that the money charged by government agencies was not connected with the actual construction while, ideally, people should be asked to pay in accordance with the progress of a project, RERA observed.

RERA has requested the state government to correct its price charging structure after which the government recently issued circular to all boards and authorities to do the needful.

So far, irrespective of a project that has started or been completed, the government boards and authorities would charge money in a fixed slot of three-month, six-month and on yearly instalments. The buyers would be fined if they do not pay the instalment on the fixed date.

Government boards and corporations often roll out major real estate projects in a city. In Bhopal, the most prestigious housing projects are of the housing board and Bhopal Development Authority.

RERA chairman Antony de Sa said a government agency — be it a board or authority — can charge money in a dated schedule only if the project is complete. But if a project has been announced or is an on-going one, the money demanded from buyers has to be linked with construction, he added.

RERA has received around 40 complaints with regard to impractical payment structures by the government agencies. Housing projects by government agencies would also have to mention delivery date. It is not mentioned in the projects yet.

Similarly, the government agencies would also not be able to do cost escalation of land in a project on a yearly basis. It would be restricted only till the due date of project completion.

If a property was due for completion in the year 2015, the agencies, in case of delay, cannot charge yearly cost escalation on land, the officials added.

Source – www.realty.economictimes.indiatimes.com/news/industry/home-buyers-to-pay-in-accordance-with-a-projects-progress-mp-rera/68625447