Tag: rera-os

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

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

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.”

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

• 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.