Homebuyers’ body demands setting up of Rera Monitoring Committee

The largest body of homebuyers has demanded setting up of a Rera Monitoring Committee (RMC) while flagging how real estate regulators (RERAs) have failed in effective implementation of the real estate regulation law. It has cited how several housing projects have not been registered despite the mandatory provision and also delay in completion of projects which started after the central law came into effect.

The Forum For People’s Collective Efforts (FPCE), which had campaigned for the RERA law, has referred to the findings and recommendations of the Amitabh Kant committee set up by the housing ministry to seek greater monitoring of regulators’ performance. It has suggested that the committee may be requested to holistically look into all the issues of the real estate sector and recommend the steps needed to be taken to ensure that situations like delayed projects don’t arise in future.

In a letter addressed to housing minister Hardeep Singh Puri, the FPCE has urged that the RMC should be composed of homebuyers, distinguished independent individuals and reputable non-profit organisations. “This committee should exclude any involvement of builders or their organisations. The RMC’s primary role would be to scrutinise the deviations, operational practices and overall functionality and intent of the RERA authorities, ensuring they are aligned with the true spirit of RERA implementation,” it said.

Referring to the high-powered committee’s recommendation of “mandatory registration with RERA” of all real estate projects, the FPCE said the promoters were legally obligated to register their projects as per the central law.

On the panel’s observation that developers were required to maintain and provide detailed records related to the project, which include financial statements, legal documents and construction status reports, the FPCE said promoters were not adhering to the mandate of updating project information every quarter and the regulatory authorities were not taking adequate actions to enforce this requirement. “Instead of imposing penalties for non-compliance, they seem to be only issuing notices after a significant period of default, which is certainly inadequate enforcement,” the homebuyers’ body said.

The FPCE has also said the committee’s recommendation, which includes projects that were started after the enactment of RERA and delayed by more than two years, can participate in the state government/ RERA led resolution process suggests that even projects initiated after the implementation of the law are experiencing delays and issues. It said this again raises doubts about the effectiveness and functioning of RERA in preventing project delays and ensuring timely completion.

On the recommendation that a fresh three-year extension may be given to all projects at no payment to authority, the homebuyers’ entity said the proposed extension does not consider timeline needed for completion of projects on a case to case basis which in many cases may be much less than three year period.

“It also lacks a compensatory provision for suffering homebuyers. This could potentially offer relief to builders but at the detrimental cost and continued suffering of homebuyers who have already endured prolonged project delays and an additional three year extension without any compensation may completely break them both financially and mentally,” the FPCE said.

Source: https://timesofindia.indiatimes.com/business/india-business/homebuyers-body-demands-setting-up-of-rera-monitoring-committee/amp_articleshow/103231425.cms

“People Are Not Aware Of The Provisions And Guidelines Of RERA”

A 3-day real estate workshop was jointly organised by The National Real Estate Development Council (NAREDCO), under the aegis of the Ministry of Housing & Urban Affairs, and Delhi RERA at the second Management Development Programme titled ‘RERA & Real Estate Essentials’. Held from May 15th to 17th, 2024 at PHD House in Delhi under the banner of the National Institute of Real Estate Development (NIRED), the workshop aimed to provide comprehensive training to the various stakeholders of the real estate industry.

While addressing the participants, G Hari Babu, National President of NAREDCO said, “Real estate sector is at the cusp of a giant leap and will contribute a whopping 15% to country’s GDP by 2050. With a current market valuation of 250 billion dollars, real estate sector is with the expected growth rate of 16-17% will almost contribute around 15% to the country’s GDP by 2050. Among other things this industry requires large number of trained professionals considering its size, time and value involved. This management development program is a step in that direction and reflects our dedication to cultivating talent and promoting excellence in the real estate domain. Through providing organizations, their employees, and professionals with the essential knowledge and skills required to excel in the current competitive landscape, we aim to catalyse sustainable growth and promote professionalism in the industry.”

Anand Kumar, Chairman, NCT of Delhi RERA, commented, “Real estate is a dynamic sector and the pace of change has only accelerated in the last few years and by imparting transparency to the sector, RERA has a big role to play in this. However, despite all the efforts, people are not aware of the provisions and guidelines of RERA. This workshop is a step in that direction. Further, we not only need to understand the gradually evolving landscape but also equip realty professionals with the right knowledge, foster professionalism and instil the culture of compliance among all stakeholders involved.”

“Real estate and construction sector is not only the second largest employer in the country but also contributes significantly to its GDP. In the last few years, it has also witnessed rapid growth. Therefore, it is imperative to regularly impart comprehensive training and undertaking capacity building initiatives among the professionals engaged in real estate, construction, and infrastructure sectors. We are happy with the number of participants and the response from the fraternity,” said Harsh Bansal, President, Delhi NAREDCO.

Source: https://www.freepressjournal.in/business/people-are-not-aware-of-the-provisions-and-guidelines-of-rera-anand-kumar-chairman-nct-of-delhi-rera

Centre asks states to follow ‘Gujarat model’ for recovery of dues in case builders defy Rera orders

Amid rising instances of builders not complying with orders passed by Real Estate Regulatory Authorities (Rera), the housing ministry has advised state governments to follow the “Gujarat model”, which has an effective recovery mechanism and appoints officers under the state laws for retrieving the dues. Gujarat Rera has appointed two officers vested with all the powers for execution of recovery warrant orders.

It has also notified detailed execution proceedings, which provides for arrest and detention. There have also been suo moto proceedings by the authority issued in some cases for attachment of the property which has ensured promoter paying the penalty with interest. The ministry has also advised states to designate additional district magistrates or additional collectors as “revenue recovery officers” for enforcement especially in districts where the pendency of such cases is high.

Recovery warrant orders are issued against errant developers for not completing a project. These warrants are forwarded by the regulators to collectors for attachment of properties and recover the dues. The issue of non-compliance of orders passed by regulators came up at a recent meeting chaired by Union housing secretary Manoj Joshi. As per the minutes of the meeting issued on Tuesday, the ministry has written to states along with the recovery model being implemented by the Gujarat Rera. It sought an update on action taken on the advisory as well.

FPCE, an umbrella homebuyers group, which had studied the recovery model of different RERAs and suggested the adoption of Gujarat model, Tamil Nadu and Maharashtra, welcomed the Centre’s move. “Homebuyers pan India are suffering as regulatory authorities are unable to get their orders enforced. Homebuyers are running pillar to post to get a refund even though they have orders in their favour for refund from authorities. Now since the ministry has written to states, we hope state regulators will adopt the recommendations to give relief to homebuyers,” said Abhay Upadhyay, president of FPCE.

As per the minutes of the meeting, Abrar Ahmed, principal adviser to UP RERA cited how they have recovered over Rs 800 crore in 4,000 recovery certificates from builders whose projects were launched from 2012 to 2014. He suggested that a provision may be made in Rera, similar to the provisions existing in the income tax law wherein if the recoveries are not possible from assets of the company or the project, the regulator can pass a special order holding the director accountable for the payment of the dues.

Source: https://timesofindia.indiatimes.com/india/centre-asks-states-to-follow-gujarat-model-for-recovery-of-dues-in-case-builders-defy-rera-orders/articleshow/107467716.cms

RERA project registrations reach 1,16,117; up 63% since 2021

The Real Estate (Regulation and Development) Act (RERA) has experienced a substantial surge in project registrations, marking a notable 63 per cent increase, reaching a total of projects as of November 2023. This surge is a significant leap from the approximately 71,307 projects registered by the end of November 2021, according to data from the Ministry of Housing and Urban Affairs.

Maharashtra emerged as the leader in project registrations, boasting 42,204 registered projects, followed closely by Tamil Nadu with 18,915 projects. This trend signals widespread adoption of RERA regulations across various regions.

From complaints to closure

The efficiency of RERA in addressing consumer complaints is evident in the rise in the disposal of cases over the last two years. The number of resolved complaints has increased from 78,903 cases in November 2021 to approximately 1,16,300 cases by November 2023. Uttar Pradesh has taken the lead in resolving complaints, with 44,602 cases disposed of since the inception of UP-RERA. Haryana and Maharashtra follow suit, collectively accounting for 69 per cent of the resolved cases.

The momentum of RERA is further underscored by the increase in real estate agent registrations, now totalling 82,755. This reflects a significant 47 per cent growth in the past two years. “More than 1.16 lakh consumer complaints have been handled by the various state and union territories’ RERA bodies,” said Anuj Puri, Chairperson, ANAROCK Group.

Nationwide RERA implementation

Dominating the nationwide implementation of the Real Estate (Regulation and Development) Act (RERA), Maharashtra takes the lead with 36 per cent of all registered projects, spanning across 34 states and Union Territories. Following closely, Tamil Nadu claims a 16 per cent share, while Telangana and Gujarat hold substantial shares of around 7 per cent and 11 per cent, respectively. A comprehensive adoption of RERA rules is evident across almost all states and UTs, with a few exceptions. Nagaland is currently in the process of finalising its notification, while West Bengal faced a legal setback, leading to the Supreme Court’s annulment of the West Bengal Housing Industry Regulation Act in March 2022. Amongst the states and UTs, 32 have established a Real Estate Regulatory Authority, and 28 have instituted a Real Estate Appellate Tribunal. However, certain regions, including Ladakh, Meghalaya, Nagaland, and Sikkim, are yet to formalise the establishment of their regulatory authorities and tribunals.

Source: https://www.republicworld.com/business/rera-project-registrations-reach-116117-up-63-since-2021/

RERA gains massive traction; UP leads in resolving consumer complaints

The Real Estate (Regulation and Development) Act (RERA), has gained massive traction ever since it was introduced in India, particularly in handling consumer complaints. According to the data from the ministry of housing and urban affairs (MoHUA), as of November 28, 2023, the relevant state authorities resolved up to 1,16,300 cases. Out of this, 38 per cent of the cases were resolved in Uttar Pradesh alone, followed by Haryana (18 per cent) and Maharashtra (13 per cent). The three states cumulatively accounted for nearly 69 per cent of the total disposed cases under RERA in the country.

Registrations for projects and real estate agents under RERA have also been increasing steadily. Almost 1,16,117 projects and 82,755 real estate brokers nationwide were registered under RERA as of November 28, 2023. Approximately, 71,307 projects and 56,177 real estate agents were registered over the same period in 2021. This represents a 63 per cent and 47 per cent growth, respectively, over the previous two years.

“Resolving home buyer concerns is one of the main functions RERA has been demonstrably fulfilling. More than 1.16 lakh consumer complaints have been handled by various state and Union territories. Over the last two years, the pace of project and real estate agent registrations has not slowed down. In fact, over the past two years, project registrations have increased dramatically by 63 per cent. Also, RERA authorities of various states and UTs have resolved over 37,397 consumer complaints in this period. Uttar Pradesh has resolved the highest number of cases. Considering how severely Noida and Greater Noida in UP had been impacted by unscrupulous players, this is noteworthy,” said Anuj Puri, chairman, ANAROCK Group.

Almost all states and UTs have notified rules under RERA, except Nagaland. West Bengal, which earlier enacted its own legislation, was challenged on this by MoHUA before the Supreme Court. In March 2022, the apex court struck down the West Bengal Housing Industry Regulation Act, 2017 (WBHIRA), observing that it overlapped with RERA. Thirty-two states and UTs have set up a real estate regulatory authority since its implementation, and of this at least 5 are interim. Ladakh, Meghalaya, Nagaland and Sikkim are yet to establish RERA.

Twenty-eight states/UTs have set up real estate appellate tribunal for disposing of consumer complaints, including four as interim. Arunachal Pradesh, Jammu and Kashmir, Ladakh, Meghalaya, Mizoram, Nagaland, West Bengal and Sikkim are yet establish theirs. Regulatory authorities of 30 states/UTs have operationalized their websites under RERA provisions. Arunachal Pradesh, and Manipur are under process to operationalise. Twenty-six states/UTs have appointed adjudicating officers, while 10 states/UTs i.e., Arunachal Pradesh, Bihar, Manipur, Meghalaya, Nagaland, Sikkim, Uttarakhand, West Bengal, Jammu and Kashmir, Ladakh are yet to do so.

Source: https://www.theweek.in/news/biz-tech/2023/12/22/rera-gains-massive-traction-up-leads-in-resolving-consumer-complaints.html

SC issues notices to states which are yet to establish RERA

The Supreme Court recently issued notices to the chief secretaries of Nagaland, Meghalaya, Sikkim and the Union Territory of Ladakh to give their responses on the lack of establishment of the Real Estate Regulatory Authority (RERA) in their states.

A bench of justices Sanjiv Khanna and SVN Bhatti also asked the chief secretaries of Arunachal Pradesh, Meghalaya, Mizoram, Sikkim and West Bengal, and the Union Territory of Jammu and Kashmir to file their responses on the current situation as these states have only passed the interim orders to notify the Real Estate Regulatory Authority.

“In view of the aforesaid summary/chart, we deem it appropriate to issue notice to the respective Chief Secretaries for the States of Nagaland, Meghalaya and Sikkim, and the Union Territory of Ladakh, who have yet to notify the RERA Rules or have notified the RERA Rules but are yet to establish the Real Estate Regulatory Authority,” the court observed.

“Also respective Chief Secretaries for the States of Arunachal Pradesh, Meghalaya, Mizoram, Sikkim and West Bengal, and the Union Territories of Jammu & Kashmir who have passed only interim orders notifying the Real Estate Regulatory Authority or are under process to establish,” the court stated in its August 11 order. The court added that affidavits would be filed by the chief secretaries concerned, indicating the progress made with regard to the enforcement and implementation of the Real Estate (Regulation and Development) Act, 2016, within a period of 60 days from the date of service of this order. With these observations, the court relisted the matter in January, next year.

Additional Solicitor General has submitted a chart with the heading “Real Estate (Regulation & Development) Act, 2016 RERA – Implementation Progress Report”. According to the chart, all States/UTs have notified rules under RERA
except Nagaland, which is in the process to notify the rules.

32 States/UTs have set up Real Estate Regulatory Authority. Ladakh, Meghalaya and Sikkim have notified the rules but have yet to establish the authority while 28 States/UTs have set up Real Estate Appellate Tribunal. Arunachal Pradesh, Jammu and Kashmir, Ladakh, Meghalaya, Mizoram, Sikkim and West Bengal are in the process of establishing the same, the chart indicated.

The regulatory authorities of 30 States/UTs have operationalised their websites under the provisions of RERA. However, the ones in Arunachal Pradesh and Manipur are in the process of being operationalised. The chart also said that 1,09,308 real estate projects and 77,704 real estate agents have registered under RERA across the country. 1,11,222 complaints have been disposed of by the Real Estate Regulatory Authorities across the country, the chart said.

Source: https://realty.economictimes.indiatimes.com/news/rera/sc-issues-notices-to-states-which-are-yet-to-establish-rera/102818538

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

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

CREDAI advises home buyers to purchase only in RERA-registered projects

The CREDAI (Confederation of Real Estate Developers’ Associations of India) has asked the Telangana Government to keep tabs on the extremely unhealthy and illegal practices by some real-estate players that are luring gullible customers into buying spaces in unviable projects.

Asking the Government to strengthen the RERA (Real Estate Regulatory Authority) to curb these practices by initiating stringent punishment against the players that are cheating the people.

“Some real-estate operators and some others without having any experience in the business are coming out with attractive schemes and offering to sell undivided share of land even before securing approvals,” P Rama Krishna Rao, President of CREDAI Hyderabad, has said.

The leaders of CREDAI have gathered here on Friday to caution the public about the unhealthy marketing strategies of some realestate players.

“They are selling such products at a nominal and discounted price to lure innocent home-buyers and investors. The cost at which they are selling the properties is not sufficient to cover the cost of construction,” he said.

He alleged that the proceeds were not being on the projects. “Sometimes the projects do not get launched or get delayed indefinitely due to many legal and statutory issues, putting the purchaser at a huge risk,” he said.

Ch Ramchandra Reddy, Chairman of CREDAI Telangana, said that the realestate market in the State continued to be resilient and robust post the Covid-19 waves unlike other cities in the country.

“The developers should not sell plots or flats to prospective purchasers without getting RERA registration. Purchases made in projects without RERA registration are risky for the buyer,” he said.

Source: https://www.thehindubusinessline.com/news/real-estate/credai-advises-home-buyers-to-purchase-only-in-rera-registered-projects/article37704417.ece