Tag: rera-india

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

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/

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

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

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

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/

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

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

Since Delhi is primarily a low-rise building market, local builders renovate the property and sell the floors independently for as much as Rs 30 crore each.

Earlier, Section 3(2) (a) of RERA provided for an exemption from registration if the land proposed to be developed was less than 500 square meters or the number of apartments proposed to be developed did not exceed eight. Many developers in posh colonies in Delhi have been avoiding registrations using this loophole.

BS Vohra, a right-to-information activist, said that the situation remains the same after the order as there is no one to look over the construction activity. Even when the plot size exceeds 500 square meters, some under-construction buildings in West-end, Vasant Vihar, Anand Lok, and Panchsheel Park are being developed without RERA registration.

Vohra said that the RERA should ensure that the rule is being followed after making it mandatory. The RERA chief could not be reached for comment.

The entire city of Delhi has registered only 81 projects, which is the lowest number in the country. Several builders in South Delhi with plots ranging from 800-1,000 square meters have not registered their projects with the RERA.

The convenor of the CII-Delhi sub-committee on real estate, urban development, and infrastructure, Harsh V Bansal said, “We need to push for organized development in Delhi. There are no major projects in Delhi while Noida and Gurgaon are benefiting from organized development”.

The Delhi RERA had threatened to impose a fine that could be up to 10% of the estimated cost of the real estate project if it was not compliant with RERA guidelines.

The registration procedure should be transparent with regard to the funds received from the purchasers, the completion and conveyance of the property in favor of the allottees, and the assurance that the project has received the required approvals and sanctions.

Many properties in Delhi’s posh colonies are worth Rs 20-100 crore. Older people and NRIs make up the majority of the previous owners who either sold or worked with developers.

The RERA had said in its order that the authority also suggests the general public to avoid investing in any residential or commercial real estate project.

Source: https://www.ipropunited.com/news/majority-of-delhi-realtors-are-avoiding-rera-registrations-of-the-projects/

West Bengal’s newly established property regulator anticipates that all existing projects in the state would be registered under the Real Estate (Regulation & Development) Act, 2016 within three months, relieving buyer worries about completion timelines and quality.

Not-yet-completed projects promoted, advertised, and sold without Real Estate Regulatory Authority (Rera) licences are among those required registration with the West Bengal Rera.

The state regulatory chapter commenced operations around 18 months after the Supreme Court invalidated the state’s own law, the West Bengal Housing Industry Regulation Act of 2017. (WBHIRA). In February of 2014, the Supreme Court ordered the state to immediately adopt Rera.

“According to the guidelines set out by the WBRera authorities, within three months after the creation of the Rera authority in the state, all projects in the state that were previously promoted without licence and have yet to be finished must be registered.

2022 homeowners grouped under the name of the Forum for People’s Collective Efforts (FPCE) wrote to the chief minister in August, requesting that he intervene and deliver the required directives to make Rera and the Real Estate Appellate Tribunal operative under the central Act.

It had highlighted concerns around unregistered launches, extra money collecting, and “diversion.”

It is a positive beginning and will inspire trust in homebuyers. However, the web site is not yet operational, and a method for filing complaints online will assist homebuyers in the future, according to a worried individual.

Source: https://www.ghar.tv/blog/article_soon-west-bengal-real-estate-projects-will-be-registered-with-rera_659.html