CM to inaugurate K-RERA

Chief minister will launch Kerala real estate regulatory authority (K-RERA) at Mascot hotel at 3pm on January 1. K-RERA was constituted in October.

K-RERA issued a notice directing that all promoters, builders and developers shall not advertise, market, book, sell or offer to sell apartments, plots of buildings from January 1 without obtaining registration from K-RERA if the apartment has more than eight units or the land proposed to be developed is more than 500m. A similar direction was issued to real estate agents that they shall not facilitate sale or purchase of plot, apartment or building without obtaining registration from K-RERA under relevant sections.

Source: https://timesofindia.indiatimes.com/city/thiruvananthapuram/cm-to-inaugurate-k-rera/articleshow/73012425.cms

Madhya Pradesh’s RERA gets judicial teeth, first in the country

Bhopal

Real Estate Regulatory Authority (RERA) of Madhya Pradesh became the first realty regulator in the country to get judicial teeth. Retired district judge, DN Shukla was appointed as first executing officer of RERA on Wednesday.

With the appointment of execution officer it will be legally binding on parties, including realtors and consumers, to follow the directives of the authority.

MP government had amended RERA rules for the purpose and issued a gazette notification facilitating appointment of an executing officer.

In the present set up, if RERA passes an order and the party concerned is unwilling to accept it, RERA moves the civil court. In such a situation, odds are that the matter may get delayed in legal procedures.

Going by RERA statistics, out of the 3,800 complaints it received so far, 2,600 have already been disposed, while 1,200 are pending. Of the total disposed cases, 88% went in favor of allottees, while the remaining 12% went in favour of builders. It means 2,300 went in favor of allottees while 300 to builders.

Of the total 2,300 orders that went against builders, there are about 400 cases in which builders are not complying with RERA orders. The execution officer with powers of both the civil and revenue court would now ensure the compliance of RERA orders.

The appointment required amendments in state RERA rules 27 and 28 that deal with recovery of interest; penalty and compensation; implementing the orders; directions and decisions of the authority. State government did the needful on the proposal of RERA.

The executing officer would take charge in a week. A panel of legal experts comprising senior judges and law secretary conducted interviews after inviting applications and finalised the name of DN Shukla.

Once the executing officer takes charge an allottee in favour of whom order was given by RERA against the builder and the builder is not accepting it, can approach the execution officer in 90 days. The execution fee would also be borne by builders once the order is executed and allottee need to pay only a token sum of Rs 1,000.

RERA chairman Anthony deSa confirmed no other state in country has an executing officer, as of now. He said, it would further strengthen the authority and ensure that its orders are followed without fail.

Source: https://timesofindia.indiatimes.com/city/bhopal/mps-rera-gets-judicial-teeth-first-in-the-country/articleshow/72150219.cms

Madhya Pradesh RERA proposes modification in rules

Bhopal

To ensure that its orders are implemented without any delay, the Real Estate Regulatory Authority (RERA), Madhya Pradesh, has proposed a modification in the rules. If the government gives its nod, MP would be the first state in the country to do so.

According to sources, RERA has suggested appointment of a district judge level officer as an executing officer with the powers of the civil court as well as revenue court. The proposed tweak will require a modification in state RERA rules 27 and 28 that deal with recovery of interest; penalty and compensation; implementing the orders; directions and decisions of the authority.

RERA chairman Anthony de Sa said the proposal has already been sent to the government. Prior to sending the proposal in black and white, the proposal was discussed with the state government. The government has shown its willingness to do so, said sources.

Once the proposed modifications are done, orders of RERA would be implemented more effectively and bring in respite to both buyers and builders, de Sa added.

As per the existing set up, if RERA passes an order and the party concerned is unwilling to accept it, RERA takes up the matter in civil court. Odds are that the matter may get delayed in legal procedures.

On the other hand, if the authority has an executing officer — with the powers of the civil and revenue court — it can settle the grievance at its level.

The case disposal rate of RERA is around 70 per cent. Out of the 3,300 complaints that RERA received so far, 2,200 have already been disposed, while 1,000 are pending. Out of the total disposed cases, 85 per cent went in favour of allottees, while the remaining 15 per cent went in favour of builders. Complaints from Bhopal and Indore account for 60 per cent of the total, while the number of projects registered with RERA is around 2,200.

According to officials, the need for an executing officer was felt in around 300 cases. The number may not be huge, but to ensure all its orders are executed in their true spirit, modification is needed in the rules, the officials added.

Source: www.realty.economictimes.indiatimes.com/news/industry/madhya-pradesh-rera-proposes-modification-in-rules/70519039

Appellate tribunal to be functional soon: Bihar RERA Chairman

PATNA

The appellate tribunal of Real Estate Regulatory Authority (RERA) in state will officially start functioning within the next 15-20 days, RERA (Bihar) chairman Afzal Amanullah said on Tuesday.

Amanullah said the appellate tribunal is headed by Justice (retd) Arun Kumar with two more members. He said the real estate buyers or builders unsatisfied with the RERA judgement can appeal to the tribunal.

Amanullah said all the ongoing registered projects will have to complete their construction work by December 2020. “Of total 654 registered real estate projects, 50% are new,” he said.

“Besides, the accounts and finance team of RERA will now keep a tab on the accounts of builders to ensure that all the money invested by the consumers is being used for that project only. About 70% of the amount realized from the consumers shall be deposited in a separate bank account to be solely used for the particular project,” he said and added: “Builders failing to follow the norms will be penalized.”

Highlighting the achievements of RERA, its member Rajiva Bhushan Sinha said when it came into existence in Bihar in April 2018, only a handful of projects were registered. “Now more than 1,100 builders have applied for registration. Total 438 complaints have been received in the last one year and 322 of them are in the hearing stages while judgement has been delivered in 70 cases,” he said.

RERA member Subodh Kumar Sinha said, “We are not only helping the buyers, but also the builders in getting loan from the banks and meeting other construction-related requirements.”

Source: https://realty.economictimes.indiatimes.com/news/regulatory/appellate-tribunal-to-be-functional-soon-bihar-rera-chairman/70155355

Madhya Pradesh RERA tightens the noose on violators, plaints drop 40%

INDORE

Madhya Pradesh Real Estate Regulatory Authority (RERA) has witnessed a sharp drop in cases from Indore in the past two months with number of complaints dropping to 60 per hearing as against over 100.

Of the three RERA centres in the state, Indore gets highest number of complaints from customers, followed by Gwalior and Jabalpur. But in past few months complaints have reduced.

RERA member A D Kapaley said, “Cases have dropped significantly from over 100 to just 50 to 60 per hearing. This is a good sign indicating increased compliance resulting in fewer grievances from the customers.”

RERA hears cases thrice in a month in Indore as against once in a month in Gwalior and Jabalpur. Most of the cases in Indore are related to delay in possession for residential property, lack of development and unfulfilled promises under a deal.

Kapaley said, “Most of the cases in Indore were related to a few projects after the promoter duped hundreds of customers. As they are getting resolved gradually, new complaints are very few and this is really a good sign.”

Recently, the authority sent notice to an Indore-based realtor for not keeping promises made to customers even after receiving 80% of the payment.

Kapaley said, “Complaints were brought to our notice after which sent a notice to builder and denied registration in RERA for any future projects when he approached the authority for extension of his existing projects.”

In the total 45 cases received by the RERA against the realtor, it directed promoters to return money to customers. Until now over a dozen of customers have received demand drafts from the promoter.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/madhya-pradesh-rera-tightens-the-noose-on-violators-plaints-drop-40/69317729

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

Bhopal

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

Incomplete projects in Indore & Bhopal get MP-RERA breather

Indore

Over a dozen real estate projects led by Indore and Bhopal have sought extension from MP Real Estate Regulatory Authority (RERA) after they failed to complete project as per proposed deadline at the time of registration.

At the time of registration of project under RERA, promoters have to propose deadline for completing the project and if deadline is breached, promoter has to take extension from the authority or else the project will fall in illegal category.

RERA chairman Anthony De Sa said, “There are over a dozen projects that have asked for extension. Extensions are being granted so that they do not become illegal projects. In case of illegal the project will be of no use to the allottee and the builder.”

The authority is giving extensions after promoter pays a certain fee and project remains under regular monitoring. De sa said extensions are given with mandatory condition that it does not any way affect right of allotee and they get compensation for delay.

According to Rera, extensions can be given for a maximum one year in phased manner while under certain circumstances considering interest of allottees, extensions can be above a year.

Recently at a hearing in Indore, an Indore based commercial project costing around Rs 13 crore has been granted an extension of 3 months over an year.

Sources – www.realty.economictimes.indiatimes.com/news/industry/incomplete-projects-in-indore-bhopal-get-mp-rera-breather/68377731

Changes in RERA need of hour to achieve growth: Madhya Pradesh RERA chief

Indore

With changing times, lot of technical advancement is happening in real estate sector and maximum utilization of the advancements will set the direction of real estate sector, said head of MP Real Estate Regulatory Authority (Rera) on Friday. “These changes or technical advancement may be a challenge for developers but need of the hour to accept these changes to achieve growth,” Rera chairman Anthony De Sa said on Friday at a seminar on ‘Amendments in RERA’ conducted by Institute of Chartered Accountant Indore branch.

De sa said the aim of Rera is to ease and smoothen real estate market by bringing transparency and responsibility.

Addressing realtors and chartered accounts, he said, “Through Rera, we aim to increase investment in real state sector and protect rights of consumers. Higher investment in the sector will help in recovering from the tough phase.”

Rera chairman said chartered accountants also play an important role in ensuring the norms are followed and true documents are submitted by developers. He said a new format for developers report has been drafted by authorities after suggestions from chartered accountants.

“The pace of any project will be monitored on basis of quarterly return that shall be attested by chartered accountant,” said De Sa.

In Rera, audit of accounts is mandatory for developers. He said as per Section 4(2), it is the role of chartered accountant to check that money received from a particular project is spent only on that project and debit from the account is in accordance with site expenses.

CA should collect all information about project well in advance from developer before handing over certificate to authorities. Institute of Chartered Accountant Indore branch chairman Abhay Sharma said, “Rera has been implemented since past 21 months but still there is lack of awareness. For smooth implementation of real estate act it is important that people are fully aware of their rights and role of Rera that it plays in regulating real estate market.”

KRERA not yet Fully Functional

RERA Kerala

  • The Government of Kerala notified the Real Estate (Regulation and Development) Act, 2015 on 03/02/2016. However it shall be deemed to have come into force on the 4th Day of May, 2015.
  • Sri. S. Ajayakumar (Retired Chief Town Planner), is appointed as the first Chairman of Kerala Real Estate Regulatory Authority.
  • The office space for Real Estate Regulatory Authority allocated at the 5th floor of Swaraj Bhawan, Nanthancode, Thiruvananthapuram 695 003.
  • Website Launched (www.rerakerala.org/Content/log.aspx)

RERA Madhya Pradesh fully Operational

RERA Madhya Pradesh

  • The State Govt notified the Madhya Pradesh Real Estate (Regulation and Development) Rules, 2017 on 22nd October, 2016.
  • Mr. Anthony de Sa, I.A.S. (Retd.) appointed as Chairman.
  • Launch of RERA Website & Web Application at 12:00 Noon on May 1, 2017 (www.rera.mp.gov.in/)
  • The office of Madhya Pradesh Real Estate Regulatory Authority is situated at RERA Bhavan, Arera Hills, Main Road No. – 1, Bhopal – 462011.