Maharera Tells Builder To Pay Buyer For Delay In Giving Flat

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed the builder of Godrej 24, a Hinjawadi-based project, to pay an interest amount for a delay in giving possession of a flat to an Army officer.

The officer had moved a petition against Pearlite Real Properties Private Limited also for providing him a stack parking slot while promising a covered car parking.

Lieutenant Colonel Pratap Rajnish Singh booked a flat in a project known as Godrej 24 in 2017. According to the terms and conditions mentioned in the agreement, the date of possession promised by the builder was September 30, 2021. Later, the builder obtained an extension for the said project as a grace period till September 30, 2022. However, the possession was given to the complainant in January 2023.

Singh had moved MahaRERA in this regard. Recently, the MahaRERA coram Mahesh Pathak partly allowed the complaint and directed the builder to pay interest for the delay from October 2022 for every month till the actual date of possession of the said flat to Singh till January 2023 on the actual amount paid by the complainant towards the consideration of the said flat at the rate of Marginal Cost Lending Rate (MCLR) of SBI plus 2% as prescribed under the provisions of Section 18 of the RERA.

Advocate Gandhar Sonis, who appeared on behalf of the complainant, highlighted that several issues like car parking and water supply etc. were still not solved despite the complainant making regular and timely payments to the builder.

The issue of car parking was solved only when the complaint was filed with MahaRERA. As per the mandate of Section 18(1) of RERA, which clearly states that “if the allottee does not intend to withdraw from the project, he shall be paid by the builder interest for every month of delay till the handing over of the possession at such rate as may be prescribed”, has to be taken into consideration and the legislative intent behind granting interest for delayed possession should not frustrate.

The respondent reiterated the facts stated in the written submission. Additionally, the respondent contended that the said project was constructed as per the approved plans and the contentions of the complainant to provide amenities as per brochure is false and no material record is placed on record.

The respondent stated that proper water connection and gas connection are provided in the said building as per the sanctioned plans and the project is complete in all aspects within time. Hence, the complaint of the complainant be dismissed.
The Occupancy Certificate (OC) for the said project was obtained on March 20, 2023, and the possession was offered to them in September 2022.

But after perusing the entire record the MahaRERA observed that the Builder failed to show any cogent documentary proof on record that they ever intimated the said OC to the complainant and offered possession of the said flat with OC despite directions being given to it.

The MahaRERA also put forth light on Section 19(10) of the RERA which provides that “every allottee shall take physical possession of the flat within a period of two months of the occupancy certificate issued for the said building”.

Source: https://punemirror.com/pune/others/maharera-tells-builder-to-pay-buyer-for-delay-in-giving-flat/cid1718881049.htm

Developers, Homebuyers Oppose Up Rera’s Occupancy Certificate Rule, Here’s Why

On Monday, a prominent real estate developers’ association and a homebuyers’ group in Noida urged UP RERA to reconsider its directive mandating builders to obtain an occupancy certificate (OC) before issuing possession letters.

According to a report by news agency _PTI_, both groups stated that this decision was not in the best interest of homebuyers in long-delayed projects in western Uttar Pradesh, including Noida and Greater Noida.

WHAT UP RERA SAY?

In a statement on June 8, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) said promoters needed to receive OC (occupancy certificate/ completion certificate) of a project, before offering possession letters to allottees. According to UP RERA, this was done “to prevent arbitrariness” being done by the promoters through the offer of possession letters sent to flat buyers and to eliminate the disputes arising between them due to this.

INDUSTRY DEMANDS RECONSIDERATION

“The UP RERA needs to reconsider this decision in the benefit of homebuyers,” CREDAI Western Uttar Pradesh Secretary Dinesh Gupta told _PTI_.

“It would have been good if this direction was made for new projects, but that sort of categorisation has not been made. This decision would impact the homebuyers in several stuck projects who have completed the units but are yet to get the OCs from local authorities,” Gupta said.

OCs are given by local authorities in Noida and Greater Noida. However, a large number of OCs and registries, among others, in several group housing projects have been on hold for a long in the twin cities due to various reasons, including pending dues by builders to the authorities.

Stakeholders say end-users, who buy a house to live in it, are faced with maximum trouble instead of investors, who buy flats as an investment option in stuck projects. This is because end-users pay not only EMIs on home loans but also rent on current accommodations.

“WITHOUT UNDERSTANDING GROUND REALITY”

Abhishek Kumar, president of the Noida Extension Flat Owners’ Welfare Association (NEFOWA), felt the UP RERA is making rules “without understanding the ground reality”.

“The rule declaring possession without OC or CC as illegal is very disturbing. It is like using the same stick to drive everyone away. In old projects, where the builder is neither paying the money nor attending meetings, home buyers will face great inconvenience. They will have to bear the burden of EMI and rent together. This is not in the interest of home buyers at all,” Kumar said.

However, he emphasised that this rule will prove to be a “milestone” in new projects, where the land has been sold by the authority after taking the full amount.

But where OC or CC is pending due to the dues of a bankrupt or missing builder, these rules are not in the interest of buyers at all, Kumar said.

In its June 8 statement, UP RERA Chairman Sanjay Bhoosreddy noted that promoters send “final demand letter” and “final demand notice” using the name and language of “offer of possession”, which creates confusion among the allottees, and it carries some binding conditions.

“‘Offer of possession’ should be meant only for the purpose of taking possession,” he said.

CREDAI office-bearers noted that in 2017, UP RERA had made a provision for deemed OC, allowing possession in projects that had the four critical NOCs (no-objection certificates) for fire, electricity, lift and finance in them.

CREDAI Western UP Vice President Suresh Garg said generally, builders give a final demand letter in their offer letter after the OC, or deemed OC, that can be as per the terms of their builder-buyer agreement.

“But most builders mention the date of receipt of OC and letter number to give reference to the home buyers and to show credibility. The demand letter cannot be called a possession letter. If a builder does so, he should also clarify when the possession can be given so that confusion does not arise,” Garg added.

WHAT IS RERA?

RERA stands for Real Estate Regulatory Authority. It’s an organisation in India established under the Real Estate (Regulation and Development) Act, which was passed in 2016. The purpose of RERA is to regulate the real estate sector and protect the interests of homebuyers. Developers must register their projects with the RERA authority in their state before they can start selling. This ensures basic project details are available for buyers’ reference.

Source: https://www.news18.com/business/developers-homebuyers-oppose-up-reras-occupancy-certificate-rule-heres-why-8930414.html

“People Are Not Aware Of The Provisions And Guidelines Of RERA”

A 3-day real estate workshop was jointly organised by The National Real Estate Development Council (NAREDCO), under the aegis of the Ministry of Housing & Urban Affairs, and Delhi RERA at the second Management Development Programme titled ‘RERA & Real Estate Essentials’. Held from May 15th to 17th, 2024 at PHD House in Delhi under the banner of the National Institute of Real Estate Development (NIRED), the workshop aimed to provide comprehensive training to the various stakeholders of the real estate industry.

While addressing the participants, G Hari Babu, National President of NAREDCO said, “Real estate sector is at the cusp of a giant leap and will contribute a whopping 15% to country’s GDP by 2050. With a current market valuation of 250 billion dollars, real estate sector is with the expected growth rate of 16-17% will almost contribute around 15% to the country’s GDP by 2050. Among other things this industry requires large number of trained professionals considering its size, time and value involved. This management development program is a step in that direction and reflects our dedication to cultivating talent and promoting excellence in the real estate domain. Through providing organizations, their employees, and professionals with the essential knowledge and skills required to excel in the current competitive landscape, we aim to catalyse sustainable growth and promote professionalism in the industry.”

Anand Kumar, Chairman, NCT of Delhi RERA, commented, “Real estate is a dynamic sector and the pace of change has only accelerated in the last few years and by imparting transparency to the sector, RERA has a big role to play in this. However, despite all the efforts, people are not aware of the provisions and guidelines of RERA. This workshop is a step in that direction. Further, we not only need to understand the gradually evolving landscape but also equip realty professionals with the right knowledge, foster professionalism and instil the culture of compliance among all stakeholders involved.”

“Real estate and construction sector is not only the second largest employer in the country but also contributes significantly to its GDP. In the last few years, it has also witnessed rapid growth. Therefore, it is imperative to regularly impart comprehensive training and undertaking capacity building initiatives among the professionals engaged in real estate, construction, and infrastructure sectors. We are happy with the number of participants and the response from the fraternity,” said Harsh Bansal, President, Delhi NAREDCO.

Source: https://www.freepressjournal.in/business/people-are-not-aware-of-the-provisions-and-guidelines-of-rera-anand-kumar-chairman-nct-of-delhi-rera

Property Conveyance: KRERA Asks Developer to Hand Over Possession of Common Areas to Homebuyers

While real estate experts in Bengaluru applauded handing over possession of common areas to the association, they flagged several issues affecting homebuyers.

The authority notes that most of the allottees had moved into their apartments in Mahendra Aarna located in Anekal by 2019, however, the developer had failed to form an association.

In one of the first such rulings, Karnataka RERA has ordered a developer to hand over the possession of common areas to the homebuyers’ association in a south Bengaluru project.

In this case, the developer Mahendra Homes Pvt Ltd obtained the occupancy certificate and completed the project. However, KRERA pointed out in its order dated May 16 that according to the RERA Act, the developer should transfer the possession to the association.

The authority noted that as per section 17 of the RERA Act, the developer must hand over actual possession of the common amenities and other titles to the association of the allottees within three months of obtaining OC. “The Act clearly states that the respondent must maintain the common areas until it is handed over to the association. Thus, the developer is ordered to hand over the possession of common areas within two months of the order date,” KRERA said.

Moneycontrol has earlier reported a lack of clear state guidelines on the conveyance of properties had left several owners in a lurch. Experts say Karnataka developers fail to convey the common areas to the homebuyers thus retaining ownership in the property even after being sold.

The Case

The authority noted that most of the allottees had moved into their apartments in Mahendra Aarna located in Anekal by 2019, however, the developer had failed to form an association.

Thus the homebuyers accused the developer of charging unreasonable maintenance costs, including threats of disconnecting essential services like electricity in case the homebuyers defaulted on the fines levied.

Among the other allegations against the developer in the project, homebuyers said the developer is providing electricity through a commercial line — without applying for a residential connection.

However, the developer contended that it had already completed the project and obtained the occupancy certificate. “They have formed an association of allottees according to the state real estate laws by executing the deed of declaration (DoD) in 2023,” the order mentioned.

A DoD is a legal document used in the transfer of ownership of property from one person to another.

The Order

The authority mentioned that the DoD has been executed so that the association is formed, according to the laws. However, a KRERA inspection in January 2024 found that several amenities remain incomplete — including a multi-purpose hall, eight borewells, lifts, and car parking.

Additionally, the developer has not provided the individual Bangalore Electricity Supply Company Limited meters to each apartment as promised. Thus it ordered the developer to complete the promised amenities and provide the electricity meters.

A Problem at Large

While real estate experts in Bengaluru applauded the order for handing over possession of common areas to the association, they flagged several issues affecting homebuyers.

Dhananjaya Padmanabhachar, director, Karnataka Home Buyers Forum, said, “Today in Karnataka after the registration of the DoD, the builder exits the project without executing the registered conveyance deed. As the DoD mentions the undivided share of land, homebuyers are left under the impression that the land title has been transferred to them and they are the owners.”
Thus, without a conveyance of common areas, the land records at the land revenue department continue to reflect the names of the previous landowner, Moneycontrol had reported.

Additionally, Padmanabhachar pointed out, “The state government has submitted its response in public interest litigation to the Karnataka High Court, dated 2021, that registration of the DoD does not amount to the registration of the association. Unlike, the authority order in this case.”

Source: https://www.moneycontrol.com/news/business/real-estate/property-conveyance-krera-asks-developer-to-hand-over-possession-of-common-areas-to-homebuyers-12734680.html

MahaRERA Suspends Registration Of 20,000 Real Estate Brokers

Maharashtra’s realty regulator on Thursday said it has suspended the registration of 20,000 real estate brokers, leaving only 13,000 such registered agents in the state. There were a total of 47,000 agents registered with the regulator, which began the registration of the middlemen for property transactions in 2017.

Earlier this year, it cancelled the registration of 13,785 agents for not renewing their licenses.

The registrations of an additional 20,000 agents have been suspended for one year for not obtaining MahaRERA’s real estate agent certificate of competency or not uploading the certificate on the watchdog’s website, an official statement said.

Licenses of these 20,000 agents can be renewed if they complete training, obtain the certificate of competency, and upload the same on the portal within a year, it added.

According to an official, about 5,500 new candidates are likely to appear for the examination to get registered as agents next month. The body’s chairman Ajoy Mehta said an agent plays an important role and it is essential for them to be well-versed with the Real Estate (Regulation and Development) Act, 2016 regulation.

“MahaRERA has made it mandatory for agents to undergo training, clear the examination, and obtain certification. This decision was taken on January 10, 2023, and was extended multiple times before finally becoming binding for all agents on January 1, 2024,” he said.

Despite this, around 20,000 agents operating are still unqualified and their approval was suspended, he said, warning that the regulator will not hesitate to cancel the registration of developers who will continue to engage with the unqualified agents.

Source: https://realty.economictimes.indiatimes.com/news/rera/maharera-suspends-registration-of-20000-real-estate-brokers/110366477

MahaRERA Introduces Minimum Specifications For Retirement Homes And Senior Citizen Housing Projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced comprehensive regulations and specifications for retirement and senior citizen housing, applicable across Maharashtra. These guidelines, detailed in a recent circular, focus on essential aspects such as building design, green building principles, lifts & ramps and safety and security.

Compliance with these minimum physical specifications is mandatory for executing these projects. Developers will now need to incorporate these provisions in the agreement for sale, as the regulation takes effect across Maharashtra.

Previously, in February, MahaRERA had issued a circular on draft model guidelines for retirement and senior citizen housing projects, inviting suggestions and views from stakeholders. The positive response led to the inclusion of several useful suggestions, enhancing and strengthening the final guidelines.

The draft guidelines were based on model guidelines issued by the Ministry of Housing and Urban Affairs. MahaRERA’s objective is to ensure a standardised code for all senior citizens’ housing projects, according to officials.

Key provisions include the requirement for all buildings with more than one floor to have an elevator accessible for wheelchairs and
mobility equipment.

Internal and external building designs that facilitate the free movement of wheelchairs, including ramps, door openings not less than 900 mm with a preference for sliding doors, lifts equipped with audio-visual signage, at least one elevator large enough to accommodate a stretcher and paramedic staff, and staircases with a width of not less than 1500 mm, among others.

These guidelines are now in effect in the state. Any future project proposal for senior citizen housing must comply with these guidelines during implementation, MahaRERA states.

Source: https://indianexpress.com/article/cities/mumbai/maharera-specifications-retirement-homes-senior-citizen-housing-9333631/

Punjab RERA Penalises Developer For 5-year Delay In Flat Possession

Shimla couple had paid ₹64 lakh for the flat in 2015, with assurance of possession by 2018; but it was not handed over even after 5 years

The Real Estate Regulatory Authority, Punjab, has directed a developer to pay interest to a Shimla-based family for an over five-year delay in handing over possession of a flat in New Chandigarh.

The complainants, Kavita Gupta and Manohar Lal Gupta, had filed a case against Omaxe New Chandigarh Developers Private Limited, Mohali.

The couple submitted that on March 17, 2015, they were allotted a residential unit, measuring 1,885 square feet, at “The Lake” project developed at Omaxe, New Chandigarh.

The basic sale price was around ₹68 lakh of which they paid around ₹64 lakh.

The possession was to be delivered on September 17, 2018. However, even after five years, the possession has not been handed over to them.

Alleging that the developer has violated various provisions of the Real Estate (Regulation and Development) Act, 2016, they filed a complaint, seeking payment of interest against the delay in handing over possession.

In their response, the developer alleged that the Act was not violated. “The complainants tried to mislead by stating that the period of handing over the possession to be 42 months, but it is 48 months with six months’ grace period,” the developer claimed, further alleging that the instalments were not paid on time.

Hearing both sides, the Real Estate Regulatory Authority, Punjab, ordered that the complainants were entitled to payment of interest from the developer for the period of delay in handing over possession.

Thus, it directed the developer to pay interest on ₹64.91 lakh at the rate of 10.85% per annum from May 9, 2019, as prescribed in Punjab State Real Estate (Regulation and Development) Rules, 2017, till a valid offer of possession is made after occupancy certificate.

MahaRERA Invites Suggestions On Draft Regulation For Quality Assurance

INTRODUCTION: The Maharashtra Real Estate Regulatory Authority (MahaRERA) is soliciting feedback on its Draft Regulation for Quality Assurance, emphasizing the importance of proactive measures in ensuring the quality of construction. Under the Real Estate (Regulation and Development) Act, 2016, MahaRERA is empowered to enforce standards that safeguard the interests of homebuyers.

DETAILED ANALYSIS

1. LEGAL FRAMEWORK: Section 14(3) of the Act mandates promoters to rectify defects within a specified period. However, MahaRERA seeks to go beyond mere rectification by instating measures to prevent defects in the first place.

2. PROACTIVE APPROACH: MahaRERA’s focus is on quality assurance as a preemptive measure rather than a reactive one. By ensuring strict adherence to quality standards throughout the construction process, the aim is to minimize the occurrence of defects and subsequent rework.

3. QUALITY PARAMETERS: The proposed Quality Assurance Certificate encompasses four key parameters: Structural Design, Stability, and Testing Quality of Input Materials Quality of Workmanship Miscellaneous Factors

4. RESPONSIBILITY: The certificate, to be submitted annually, holds the promoter accountable for maintaining standards prescribed by MahaRERA. It emphasizes the importance of structural integrity, material quality, skilled labor, and adherence to regulatory requirements.

5. CONSULTATION PROCESS: MahaRERA invites stakeholders to provide suggestions and views on the draft regulation, underscoring the collaborative effort to enhance quality standards in the real estate sector.

CONCLUSION: MahaRERA’s initiative to solicit feedback on the Draft Regulation for Quality Assurance signifies a proactive stance towards ensuring high standards in real estate development. By incorporating preventive measures and rigorous quality checks, MahaRERA aims to instill confidence in homebuyers and elevate the reputation of the industry. Stakeholder participation is pivotal in shaping regulations that promote sustainable and quality-centric practices, ultimately benefitting both buyers and developers.

MahaRERA Makes Mandatory To Include All Details Related To Parking In Legal Documents

Complaints that MahaRERA receive are of various nature, such as, building’s beam obstructing parking of vehicle, vehicle cannot be parked in the parking, vehicle door cannot be opened to exit, manoeuvring space inadequate, etc.

Mumbai: Several complaints have been received by the Maharashtra RealEstate Regulatory Authority (MahaRERA) with regards to parking spaces sold and allocated by the developers. Taking serious cognizance of this and to prevent a recurrence, the housing regulator has made it mandatory to include all details related to parking as part of annexures to the Allotment Letter and Agreement for Sale.

The complaints that MahaRERA receive are of various nature, such as, building’s beam obstructing parking of vehicle, vehicle cannot be parked in the parking, vehicle door cannot be opened to exit, maneuvering space inadequate, etc.

MahaRERA has issued a model draft clause as per of circular’s annexure, to be included in the legal documents, which includes all the details regarding the parking lot number, parking length, height, width, location of the parking block, etc. in the building. This
standard clause is to prevent any ambiguity or disputes at a later stage and is mandatory for promoter to annex this with Allotment letter and Agreement for Sale.

Details of model agreement for sale, issued in december 2022

In the Model Agreement for Sale, issued in December 2022, mention of Force Majeure, Carpet Area, Defect Liability Period and Transfer Agreement have been made mandatory in every agreement for sale. Now, parking in another aspect that has been made non-negotiable and any changes made despite the consent of a homebuyer, will not be accepted by MahaRERA.

Therefore, MahaRERA insists on strict adherence to the circular and the standard draft clause stating complete details about a parking slot. This will prevent any inconvenience and agony over parking premises that a homebuyer otherwise faces after moving into a new residence.

Kerala Real Estate Regulatory Authority issues notices to 63 real estate projects for not filing tri-monthly report

The Kerala Real Estate Regulatory Authority (K-RERA) has issued notices to 63 real estate projects in the State for not submitting online tri-monthly reports for the current calendar year. Out of 582 projects only 519 filed their reports, said K-RERA.

Sources in the authority said that tri-monthly reports are part of the process of building transparency in the real estate business. The reports give a clear idea about the progress of works for consumers and ensures confidence in the builder.

The State government had recently issued a circular instructing local government bodies about the procedures to be followed to get plot development projects registered with the regulatory authority. The circular, issued on March 16, said the rules governing the registration of plot development and sale of the plots should be displayed for the public in the offices of local bodies.

The circular instructed the secretaries of local bodies concerned to issue stop memos in cases where plot development and sales were done without regulatory sanctions or permission for layouts. The stop memos are to be issued under the Panchayati Raj rules of 1994 or Kerala Municipality Building Rules.

There has been a surge in the number of real estate projects during the last calendar year. The numbers had increased 32.70%. While a total of 159 projects were registered in 2022, the number rose to 211 in 2023. A total of 191 real estate projects reported their completion during the year 2023.

The largest number of registrations in 2023 fell under the residential apartments category, accounting for 122. There were also 56 villa projects. Twenty-one plots of land were registered. Commercial-cum-residential projects registered during 2023 totalled 12.

Source: https://www.thehindu.com/news/cities/Kochi/kerala-real-estate-regulatory-authority-issues-notice-to-63-real-estate-projects-for-not-filing-tri-monthly-report/article68091143.ece