UP-RERA to launch single window system soon

Lucknow

Soon, citizens, builders and developers would be able to avail several facilities offered by Uttar Pradesh Real Estate Regulatory Authority (UPRERA) through a single window system.

Citizens and developers would be able to get maps approved, lodge complaints and, secure progress reports and no-objection certificates for projects.

UPRERA chairperson Rajiv Kumar said “All information about the facility will be made available online. Citizens will also be able to file complaints in case they are duped by a developers or the builder is delaying possession of a unit and also seek information about promoters,” he added.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/up-rera-to-launch-single-window-system-soon/70796811

Around 16 housing projects under MahaRERA scanner

Pune

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has placed 16 registered projects under the scanner for non-completion by developers who claimed to have gone bankrupt.

Complaints against these projects have been received mainly from Pune, Mumbai, and Thane, said the authorities. A hearing will be given to these developers, following which they will have to revert within a month or their registration will be revoked under section 7 of the MahaRERA Act, officials said.

In all, 70 complaints have been received from members of the homebuyers’ association against these 16 projects.

The regulatory body had said that homebuyers should form associations and lodge complaints against promoters under section 7 of the MahaRERA Act.

The MahaRERA authorities told TOI that several complaints have been received against these projects and the standard operating procedures (SOP) were put in place for revoking their RERA registration.

Under SOP, homebuyers can form association and lodge a complaint under section 7 of the MahaRERA Act, demanding that the registration be revoked and a new developer be appointed with the help of MahaRERA officials.

“The complaints have been received mainly from Mumbai, Pune and Thane against these projects. The MahaRERA will decide on the projects that have been shelved due to bankruptcy. For each of the registered complaint, hearing has been given to banks and homebuyers’ association and they have been asked to check on the projects’ feasibility,’’ stated officials.’ As per the SOP, the developers will get a month’s notice to arrange for money to complete the projects. If they fail to do so, the homebuyers’ association can appoint another developer or they can complete it themselves.

Citizens who have been issued MahaRERA orders but are awaiting implementation stated that the SOP would help to take the projects ahead if the association members work together. “There is very slow implementation of MahaRERA orders and the SOP should help,’’ said an affected citizen.

Developers, however, feel that the one-month window is too short a time and they should be given more time, especially, when a developer has gone bankrupt, they said.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/around-16-housing-projects-under-maharera-scanner/70431952

Centre to tell Maharashtra to bring unregistered projects under MahaRERA

Pune

The Union minister of housing and urban affairs on Sunday said he would tell the state government’s housing department to look into bringing the unregistered projects under the Maharashtra Real Estate Regulatory Authority’s ambit.

Hardeep Singh Puri, the Union minister of housing and urban affairs, said he would be writing to Maharashtra chief minister and the Maharashtra Real Estate Regulatory Authority (MahaRERA) within the next fortnight to do the needful.

He made the commitment after hearing Shirish Deshpande, the chairman of Mumbai Grahak Panchayat — the Maharashtra consumers’ forum — in a meeting of the ministry of housing and urban affairs in Delhi.

The meeting was held under the chairmanship of Union finance minister, Nirmala Sitharaman, to discuss various issues concerning the real estate sector and the steps to be taken to strengthen it.

Deshpande told TOI that Section 4 (2)[c] of Real Estate Regulatory Authority Act requiring builders to produce sanctioned building plan and commencement certificate for registration was not mandatory in nature. This was also put forth by Madhya Pradesh RERA chief and RERA chiefs of other states too echoed it, he said.

Against this backdrop, Deshpande expressed hope that there was no need to amend Section 4 (2) [c] and projects could be registered with RERA without those certificates. “This will bring a huge number of unregistered projects under the ambit of MahaRERA,” he said.

Another participating member said the act clearly stated that if any project had not received completion certificate in 2017, when the act came into force, it would come under RERA irrespective of registration. “If any such projects are not registered, they would have to be registered and if it is not it is the duty of the authority to ensure registration,” said an activist.

Consumers have been approaching MahaRERA for registered projects so far.

The state consumers’ forum also put forth the delay in bringing redevelopment projects under MahaRERA. The state real estate regulatory authority has proposed an amendment to the existing rules to bring the rehabilitation and sale components of redevelopment projects under the ambit of the Real Estate (Regulation and Development) Act. MahaRERA has sent a letter to chief minister Devendra Fadnavis for his approval to the amendment proposal.

Shirish Deshpande, the chairman of Mumbai Grahak Panchayat, said rules would have to be amended to consider any redevelopment project as “a whole project.”

The components related to the rehabilitation for the owners and sale are now accounted separately.

The developers now register only the sale component.

It will bring all redevelopment projects, with the rehabilitation components, under RERA.

Source: www.realty.economictimes.indiatimes.com/news/industry/centre-to-tell-maharashtra-to-bring-unregistered-projects-under-maharera/70651767

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

RERA lawyers form Bar Association of MahaRERA

Mumbai

With more and more lawyers representing clients in Real Estate (Regulation and Development) Act (RERA) cases, the advocates handling these cases on Friday registered their Bar Association of MahaRERA with the Bar Council of Maharashtra and Goa.

State Advocate General Ashutosh Kumbhakoni on Friday formally presented a certificate of registration to the Bar Association of MahaRERA members at his office. Advocate Harshad Bhadbhade has been elected as the President of the association while advocate Anil D’souza and advocate Bishwajeet Mukherjee will serve as the Secretary and Joint Secretary.

The association was registered under the Bar Association (Constitution, Registration and Control) Rules, 2005 framed by the Bar Council under the Advocates Act, 1961 and Maharashtra Advocats Welfare Fund Act, 1981.

“MahaRERA cases with serial numbers having crossed the magical one lakh figure, it is easily the fastest growing and most approached quasi-judicial body in India. The Bar Association of MahaRera will strive to be the crucial link between the Bar and the Bench. There are many issues that litigants and advocates themselves are facing and this Bar Association will do its very best to be the bridge between all stake holders,” said secretary Anil Dsouza. He said the association has 50 members at the moment.

Maharashtra is the leading state in the implementation of RERA and has the highest 21,812 ongoing real estate projects registered with it. Out of these 16,946 projects are ongoing under the Authority’s monitoring, while 4,698 or 21 per cent of these projects have been successfully completed since May 1, 2017. MahaRERA received more than 8,217 complaints, and it has resolved and given orders in 62 per cent or 5,103 cases. 3,114 complaints are presently in the process of hearings.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/rera-lawyers-form-bar-association-of-maharera/70426128

Punjab RERA constitutes group to examine laws related to Real Estate

Chandigarh

Punjab’s Real Estate Regulatory Authority has constituted a group to examine various laws related to real estate sector with a view to bring transparency and harmonise the real estate laws in the state, an official statement said here.

The statement quoting spokesperson of the Housing and Urban Development Department said the two-member group would examine various laws such as Punjab Regional and Town Planning and Development Act, 1995; Punjab Apartment and Property Regulation Act and Punjab Apartment Ownership Act, 1995.

“After analysing the existing laws of the state dealing in the field of real estate, the group would submit its suggestions to make necessary modifications so that these could be harmonised with the provisions of The Real Estate (Regulation & Development) Act, 2016 (RERA)…,” he said.

The amendments proposed by the group would be submitted to the government for approval.

The Punjab State Real Estate (Regulation and Development) Rules, 2017 were notified by Punjab Housing and Urban Development Department over two years ago.

To bring the prevalent laws in conformity with the provisions of The Real Estate (Regulation & Development) Act, 2016, it was felt there is a need to examine and amend these, the spokesperson said.

The Housing and Urban Development Department had requested Real Estate Regulatory Authority, Punjab to form a group to take up the job of scrutinising and examining the laws and identify necessary changes, he added.

Under RERA, each state and union territory has its own regulatory authority which frames regulations and rules as per the Act.

RERA covers both new project launches and the on-going projects which have not been completed or the occupation certificate not received.

It makes it obligatory on the part of the builders not to book, sell or offer for sale, or invite persons to purchase any plot, apartment or building in any real estate project without registering the project with the authority.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/punjab-rera-constitutes-group-to-examine-laws-related-to-real-estate/70529031

Builders’ current process of maintaining a collection account is wrong: UP-RERA

New Delhi

The current process of maintaining a collection account by builders to get all deposits before transferring the mandatory 70 percent of the money into escrow account is wrong, said the Uttar Pradesh Real Estate Regulatory Authority.

The realtors then transfer the remaining 30 percent of the money to third account operated by them for appropriating for purposes other than construction and land cost.

According to the authority, “This practice is apparently wrong. The promoters have to receive all the amount in the Escrow Account and only the money left after utilising 70 percent of the money for construction and land cost should be allowed to be withdrawn for a purpose other than construction and land cost. It is re-emphasized that this 70:30 percent ratio has to be maintained from the inception of the project.”

The above observation was made in a meeting held by UP-RERA officials with chief general managers and general mangers of all the public and private banks. The authority has issued appropriate directions to all the zonal heads and branch managers to comply with the RERA orders.

UP-RERA has also decided to verify all the projects accounts maintained with different banks. “The Chartered Accountants of RERA will be visiting the concerned branches in this regard,” said Rajive Kumar, chairman, UP-RERA.

The authority further said that there cannot be any charge or lien on the separate project account, the bank cannot recover the amount or installment due from the promoter from this account. The bank can have lien on the account to which the promoter transfers 30 percent of the collected money.

“The bank can not insist that in case of loan for the project the promoter should open an account with it and receive all the money from the allottees in this account. Nor can be the bank insist on the promoter to transfer the balance money from the existing project account to new account,” said Abrar Ahmed, secretary, UP-RERA.

As per the provisions of section-4 (2) (l) (D) of Real Estate (Regulation and Development) Act 2016, seventy percent of the amount for a real estate project must be deposited in a separate account to be maintained in a bank to cover the cost of construction and the land cost.

The concerned branch is required to ensure that money is utilized for the specified purpose only and not for any other purposes. The bank must also ensure that the promoter is permitted to withdraw any amount from this account only after he has submitted the certificate from an engineer, an architect and a charted accountant.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/builders-current-process-of-maintaining-a-collection-account-is-wrong-up-rera/70558486

UP-RERA to propose stress fund to complete pending realty projects

Noida

In the first step towards providing some relief to homebuyers, the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) is set to propose the creation of a stress fund to complete pending real estate projects.

After tabling the proposal at its board meeting in Lucknow, the regulator will open it for suggestions and discussion, after which it is likely to send it to the UP government.

Homebuyers who invested in several projects have been demanding a stress fund to help cash-strapped builders with initial liquidity.

However, their demand has so far not received any response from the state or central government.

UP-Rera members told TOI that given the abysmal financial state of some of the projects in Noida and Greater Noida, it could be difficult for any agency to come on board to help complete construction without financial backing from the government.

“We have created a proposal. However, it will be weighed unanimously by the entire board in Lucknow. While the law takes its course to deal with the injustice by the builders towards the buyers, we, as a real estate regulator, will take a balanced and poised stance. Our objective is to help buyers get their flats. Wherever we can, we will mediate to help completion,” UP-Rera member Balwinder Kumar told TOI.

“Given the huge count of flats that are pending here where builders are in a financial mess, we now want to see if a financial package for completing these flats can be created,” he added. Kumar, however, did not divulge the fine print of the proposal.

Homebuyers cannot start making payments and banks do not offer loans in projects which are in a stalled condition, some have argued.

“The builders have to show at least some sign of construction before buyers can start paying their pending dues on projects, which have come to an absolute standstill. Whichever agency comes forth for the task of completion would need seeding liquidity which the government ought to provide through a stress fund,” Abhishek Kumar, president of the Noida Extension Flat Owners Welfare Association (Nefowa) and also a member of the UP-Rera Conciliatory Committee, said.

In June, the Forum For People’s Collective Efforts, an apex body of homebuyers, had urged the state government to set up a Rs 10,000-crore stress fund for completing pending projects in the next five years. The forum had suggested that the government should strip off personal and company assets of promoters of delayed projects to recover the amount spent for completing the works using this fund.

Source: www.realty.economictimes.indiatimes.com/news/industry/up-rera-to-propose-stress-fund-to-complete-pending-realty-projects/70426054

 

 

Centre plans to set up common online platform for RERA of all states, UTs

NEW DELHI

The Centre has planned to set up a common online platform for the Real Estate Regulatory Authority (RERA) of all states and UTs, a move which will provide an opportunity to home-buyers, builders and authorities to exchange views. Announcing the government’s plan here, Housing and Urban Affairs Secretary Durga Shanker Mishra said that with this platform, the real estate law will become “more strong”.

Under the Real Estate (Regulation and Development) Act, 2016, all states are mandated to constitute their respective real estate regulator RERA which provides proper protection to home buyers.

“We are working to introduce a common platform where RERA of all states and Union Territories (UTs) can exchange their views. With this, RERA will be more strong,” he said.

According to the ministry, as per the norms of Pradhan Mantri Awas Yojana (Urban), home-buyers will not be able to avail Credit Linked Subsidy Scheme (CLSS) under the mission if real estate project is not registered under RERA.

Under PMAY (U), home-buyers can avail an interest subsidy of upto 2.67 lakh.

Later, Mishra told reporters that on the online platform, any state RERA can study an order of other states in a particular matter. Also, home-buyers and builders can give their views on this issue.

Giving details about real estate projects on the fourth anniversary of PMAY (U), AMRUT and Smart Cities Mission, the secretary said that till now, over 42,000 projects have been registered under RERA while more than 32,000 real estate agents have been registered.

On his part, Housing and Urban Affairs Minister Hardeep Singh Puri said that wherever the central real estate law has been implemented, it has made a “very big difference”.

RERA is a real estate regulator and it gives an opportunity to home-buyers to register their complaint against builders, Puri also said.

Mishra said that 30 states and UTs have notified RERA, but West Bengal has notified its own real estate regulator – Housing and Industrial Regulation Act, 2017 (HIRA).

In July last year, the ministry had sought the opinion of the Law Ministry over West Bengal notifying its own real estate law instead of implementing the Real Estate (Regulation and Development) Act enacted by Parliament.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/centre-plans-to-set-up-common-online-platform-for-rera-of-all-states-uts/69946101

Builders must provide financial plans of projects to Tamil Nadu RERA

CHENNAI

Builders of large housing projects in the state will soon have to convince the Tamil Nadu Real Estate Regulatory Authority (TNRERA) that they have the money to complete them and not leave home-buyers in the lurch midway.

“The basic idea is they should have a financial plan for completing the housing project,” TNRERA chairman K Gnanadesikan told TOI. The real estate regulator has already asked a couple of developers in the city to furnish these details before registering the projects. Developers of projects with 100 units and more must compulsorily present their financial contingency plan to TNRERA.

The TNRERA move comes against the background of several housing projects across the country being abandoned midway due to lack of funds with developers, leaving homebuyers in the lurch. According to the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017, all ongoing housing projects above eight units or more than 5000 square feet should be registered with the TNRERA. The Real Estate (Regulation and Development) Act, 2016, states that 70 per cent of the amount realised from buyers must be deposited in a separate escrow account, which would be released by the banks after completion of each stage of the construction.

TNRERA sources said that some projects come to a standstill at different stages largely due to insufficient funds. This leaves customers in trouble. The financial contingency plans will help to protect buyers’ interests as they will have roadmaps to raise funds through tie-ups with financial institutions.

According to data with ANAROCK property consultants, 8,650 apartment units worth Rs. 5,620 crore launched before 2013 are yet to be handed over to buyers in Chennai.

The Confederation of Real Estate Developers’ Association of India (CREDAI) has welcomed the move. Its Chennai chapter president W S Habib said, “After the implementation of the real estate Act, fly-by-night developers have almost disappeared. The new development will be an extra cover for protecting homebuyers investments,” he added.

Source:https://realty.economictimes.indiatimes.com/news/industry/builders-must-provide-financial-plans-of-projects-to-tamil-nadu-rera/70081576