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

Up RERA Appoints Cushman & Wakefield As Consultant

The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has appointed Cushman & Wakefield to help resolve issues of dues owed by developers and revival of stalled projects in Noida and Greater Noida.

Builders in the state owe an estimated Rs 40,000 crore to the Noida and Greater Noida authorities and the Yamuna Expressway Industrial Development Authority in the form of premium, interest, and penal interest against plots allotted for real estate projects. Thousands of homebuyers in Noida and Greater Noida have been unable to register their homes because the builders have not paid their dues.

UPRERA chairman Rajive Kumar said that the consultant will carry out an in-depth analysis of the projects in Noida and Greater Noida and come up with possible solutions so that homebuyers can get their houses expeditiously. He said the consultant will submit its report this month, after which UPRERA, in consultation with the state government, would take a decision on the matter.

Non-payment of dues by builders is one of the driving forces behind disputed projects in Noida and Greater Noida. So, both the issues are interlinked and ultimately homebuyers are suffering. This is UPRERA’s initiative to end this logjam.

An UPRERA official said the consultant has sought representation from the Confederation of Real Estate Developers’ Association of India (CREDAI) and the National Real Estate Development Council (NAREDCO) over the issue of clearing pending dues. He said UPRERA officials are likely to meet representatives of developer bodies and officials of the Noida and Greater Noida authorities.

Source: https://www.rprealtyplus.com/news-views/up-rera-appoints-cushman-wakefield-as-consultant-110179.html

Orissa HC issues restraint order on RERA’s registration fee notification, provides relief to builders

In a major relief to the builders, the High Court has issued a restraint order on the registration fee hike notification issued by the Odisha Real Estate Regulatory Authority (RERA).

The hearing came on a petition filed by the Confederation of Real Estate Developers’ Association of India (CREDAI).

As per the rule of the RERA, when a builder seeks permission to construct eight or more flats, he has to get the project registered. Earlier, to register their projects, the builders had to deposit Rs 10 per square meter.

But on July 28, 2022, the RERA issued a notification announcing that the registration fee has been hiked from Rs 10 to Rs 200.

Challenging this, the State chapter of the Confederation of Real Estate Developers’ Association of India (CREDAI) moved the Orissa High Court, praying for the cancellation of the notification. They alleged in their petition that the RERA doesn’t have any right to hike fee. The government can instead do this.

While hearing the petition today, the State’s apex court directed the Odisha government and the RERA to furnish their responses.

The court also directed the RERA to deposit the money if collected in a bank account with accruing annual interest until the final judgment. If the final judgment goes against the RERA, the money will be refunded or vice versa.

Source: https://odishatv.in/news/odisha/orissa-hc-issues-restraint-order-on-rera-s-registration-fee-notification-provides-relief-to-builders-200862

In a first, MahaRERA brings in QR codes to help Homebuyers get Transparent Information

Homebuyers can now get details such as the progress of the construction, promoter’s name, hurdles in completion of a project, to registration date among other crucial details by just scanning a QR code on project registration certificates.

In a first-of-its-kind initiative, the Maharashtra Real Estate Regulatory Authority (MahaRERA) started a QR-code-based technological service that will help homebuyers get transparent information in a single scan.

Last week, MahaRERA issued the first QR-code-based project registration certificate to the Gera Planet of Joy Project in Wagholi, Pune. All newly registered projects will carry the QR code. The authority will also install the QR code on older project registration certificates in a phased manner.

Homebuyers can simply scan this QR code on project registration certificates visible on MahaRERA portal and the scan will generate relevant information about the project, including the name of the project, the promoter’s name and details, the completion date, the registration date, the statutory approvals received by the project etc.

The QR-code scan will also provide critical information to buyers like any changes in the approved plan of the project, and any extensions given to the project’s validity, any recovery warrants issued against the project. Homebuyers will get to know if there are any problems with the finances and timely delivery of the project using the information on complaints and warrants issued against the project.

“Now, homebuyers can also get crucial information under Form 5. Under RERA norms, it is mandatory for developers to provide updated information about the construction progress and financial updates every quarter and half-yearly. Home buyers will be able to access this information by simply opening the registration certificates of newly registered projects and scanning the QR code,” said a MahaRERA official, adding that the registration certificates for older projects will also be updated with the QR-code over a period of time.

Over 40,000 projects are presently registered with MahaRERA out of which 11,099 are completed. Over 20,783 complaints have been filed, and 14,049 orders have been issued on these complaints.

Stealing a march over other states, MahaRERA was the only state RERA authority portal which went live on May 1, 2017, the day Real Estate (Regulation and Development) Act 2016 came into existence. It is also the first to start the Conciliation Forum, an alternative grievance redressal mechanism where home buyers and developers can sit across the table with MahaRERA-appointed conciliators and settle complaints out of court. It was the first authority to geo-tag projects with information about social infrastructure around a registered project.

Source: https://www.hindustantimes.com/cities/mumbai-news/in-a-first-maharera-brings-in-qr-codes-to-help-homebuyers-get-transparent-info-101679942257557.html

Smaller properties to come under West Bengal RERA guidelines

Smaller residential developments may be brought under the purview of the West Bengal Real Estate Regulatory Authority, or a separate law may be enacted to govern them.

The Chief Minister, Mamata Banerjee, has asked the housing department to consider the proposal so that homebuyers who are not currently covered by west bengal rera can also get some protection.

Susil Mohta, president of the Confederation of Real Estate Developers’ Association of India (West Bengal), raised the issue of small-time local promoters bringing disrepute to the trade by defrauding homebuyers who had no protection, unlike larger developments covered by West Bengal RERA, during the interactive sessions.

“RERA is applicable to any project on 7 cottah or a minimum of eight units. Projects that are smaller than this, and there are many such developments in every neighbourhood, there is no regulation to stop the builders from not meeting their commitments. Hence, there are instances of developers handing over buildings without a completion certificate (CC), or selling the same unit to more than one buyer. We wanted the government to step in and hand given a draft proposal to the housing department on March 2 and raised the issue at the meeting with the CM,” Mr. Mohta said.

In a timely manner, CM Miss Banerjee addressed the issue and said she had also heard multiple reports of people being harassed by part-time promoters. Aroop Biswas, the housing minister, has been asked to take steps to protect homeowners’ rights and prevent promoter fraud.

CREDAI has proposed broadening the application of the law to include construction projects on lots greater than three cottah. Hence, projects with four to seven flats would be subject to the guidelines.

“The state government cannot relax the RERA guidelines but it can make it more stringent. While most of the large developers, including those affiliated with CREDAI, are compliant with regulations, the smaller developers who are not accountable tend to flout rules and bring a bad name to the industry,” Mr. Mohta added.

Source: https://www.constructionworld.in/latest-construction-news/real-estate-news/smaller-properties-to-come-under-west-bengal-rera-guidelines–/39743

Mumbai sees over 3,000 property registrations in 11 days

As many as 3,244 property registrations took place in Mumbai on March 11 alone, generating Rs 249.42 crore in stamp duty and registration fees. The Maharashtra Department of Registration and Stamps informed that 46,811 conveyance deeds were also recorded on the day and a revenue of Rs 877.79 crore was generated.

Currently, the stamp duty fee is 6 per cent and registration charge is 1 per cent, excluding other taxes like metro cess and local body tax. Women homebuyers get a rebate of 1 per cent in stamp duty.
Real estate experts say that property registrations will do well in the high-budget luxury section as the tax on capital gains will come into effect from April. February also saw the highest revenue collection in Mumbai.

One of the major reasons behind the rise in sales in high-budget homes in Mumbai and other cities is believed to be Union government’s recent move to limit capital gains tax deductions to Rs 10 crore.
MahaRERA, the real estate regulatory authority, is also raising awareness among the homebuyers on how to save their money from getting stuck in any stressed project. It advised the property buyers to purchase only RERA-registered properties after a detailed background check.

MahaRERA also issued a list of dos and don’ts for real estate developers to update all such information in the public domain.

Source: https://www.timesnownews.com/mumbai/mumbai-sees-over-3000-property-registrations-in-11-days-article-98586266

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

Govt asks local bodies to upload construction permissions to their websites, link them with MahaRERA

To prevent fraudulent practices on the part of builders and developers, the Urban Development Department of the Maharashtra government Thursday directed all local bodies to upload permissions granted for commencement of construction and occupancy to builders for new and upcoming residential and commercial projects on their website and integrate them with the Maharashtra Real Estate Regulatory Authority (MahaRERA) before March 31, 2023.

These permissions are in the form of Commencement Certificates (CCs) that allow builders to start construction of a building and Occupancy Certificates (OCs) permitting residents to move into the building once the construction is complete.

In case the local bodies do not have websites for this purpose, the Urban Development department directed them to design and activate the websites and integrate them with MahaRERA before March 31, 2023. Meanwhile, all local bodies have been directed to email the permissions to MahaRERA. The local bodies will have to communicate updates in the permissions to RERA each time. A government resolution to the effect was issued by the Urban Development department on Thursday.

“In case of Mumbai, Brihanmumbai Municipal Corporation (BMC) already has a mechanism to publish these permissions online and integrate it with RERA,” an official said.

Last year, it had come to light that builders in Kalyan Dombivali constructed buildings without requisite permissions from the local bodies and sold apartments in these buildings by creating fraudulent documents of permission. A senior official said, “These documents are submitted to RERA with a self-declaration from the builder, who submits an affidavit. However, until now, there was no way for RERA to verify if these documents are original. If a fraudulent document is submitted with the signature of the concerned authority, it is taken as an original permission.”

“RERA wrote to the Urban Development department last year requesting it to develop a mechanism where documents can be verified, following which these provisions were made,” the official said.

Source: https://indianexpress.com/article/cities/mumbai/govt-local-bodies-construction-permissions-websites-maharera-8464551/

MahaRERA brings transparency into Real Estate Sector

The aim of the MahaRERA mechanism is to bring transparency in the sector to help the homebuyer, its chairperson Ajoy Mehta said on Saturday.

He was speaking at a function organized by National Real Estate Development Council (NAREDCO) on ‘RERA Updates and Insights’ in Navi Mumbai.

“Only when the real estate industry survives will the homebuyer gain. We will hold workshops organised by MahaRERA and NAREDCO to help developers gain clarity over compliances,” he said.

While builder and NAREDCO vice-chairperson Niranjan Hiranandani said MahaRERA must speed up the process of giving approvals, Sanjay Dutt of Tata Realty and Infrastructure said institutional funds were flowing into the real estate industry at a good pace.

The industry is likely to attract investments of Rs 3 lakh crore over the next three to four years, Dutt claimed.

The Real Estate Regulatory Authority has helped the real estate sector gain respect due to regulations and professionalism, including the option for exit through deregistration of a project, NAREDCO president Rajan Bandelkar said.

Meanwhile, Sanjay Deshmukh, MahaRera nodal officer for lapsed projects, urged developers to improve the quality of the uploaded data.

“Around 75-80 per cent of participants were falling short on quarterly filing timelines,” he said. PTI COR BNM BNM

Source: https://theprint.in/india/maharera-brings-transparency-into-real-estate-sector/1381736/

MahaRERA offers exit option to realtors, but with conditions

The Maharashtra Real Estate Regulatory Authority (MahaRERA) on Friday issued an order laying down conditions that include protecting the rights of homebuyers.

The developers can now deregister their real estate projects themselves.

MahaRERA Secretary Dr Vasant Prabhu, in the order, cited instances where promoters who have registered their projects are unable to commence and complete the construction, or have commenced the construction but are not in a position to complete the construction.

The reasons could be lack of funds, economically unviable projects, litigations, inter se disputes, family disputes, change in planning, or government notifications. Keeping these projects registered with the authority is not beneficial for stakeholders, the regulatory body has said.

MahaRERA’s conditions for de-registration

Therefore, MahaRERA has now set out conditions for deregistration. Only projects where not a single booking has been received will be considered. In case there are purchasers, the onus to settle the rights of such allottees will be on the affected developer.

Additionally, if a part of the project getting deregistered is affecting the rights of the remaining project, two-third consent from allottees is mandatory while submitting the deregistration application. Aggrieved persons other than the builder can move MahaRERA by lodging a complaint.

Mixed reactions from real estate industry

In the real estate industry, this order has been received with mixed reactions. While realtors have welcomed it as it provides them an exit, the buyers are somewhat unhappy. Purchasers said there is a need to lay down more stringent conditions as the developers are known to not just keep home purchasers but also MahaRERA in the dark by not updating the status of the project. Moreover, the orders passed by the regulator are barely honoured by the real estate fraternity, earning MahaRERA the monicker of a toothless tiger.

Source: https://www.freepressjournal.in/mumbai/mumbai-maharera-offers-exit-option-to-realtors-but-with-conditions