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

Uttar Pradesh Real Estate Regulatory Authority Passes 5 Orders To Safeguard Homebuyers’ Interests

UPRERA has asked realtors to sell housing units only on the basis of carpet area and register projects with the same name as recorded in the sanctioned map.

The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. It has directed real estate developers to sell housing units only on the basis of carpet area and has also asked them to register their projects with the same name as recorded in the sanctioned map. Another order is to do with the inclusion of names of co-allottees in homebuyers’ complaints.

The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. The Uttar Pradesh Real Estate Regulatory Authority has passed several orders over the last few weeks to protect the interest of homebuyers. The RERA Authority has also directed real estate developers to print the QR code loaded project registration certificate and display it at a prominent place in its office and the project site marketing office so that it is visible to prospective and existing homebuyers of the project from a distance. This is similar to a MahaRERA order that has been in force since August last year.

Hindustan Times – your fastest source for breaking news! Read now. ALSO READ: Real estate sector will contribute 15% to the GDP and will reach a market size of $1 trillion by 2030: Puri It has also made it mandatory for the real estate developers to prove their title on the land on which they propose to develop a real estate project.

1. DEVELOPERS MUST MAINTAIN THE SAME NAME FOR PROJECT BRANDS AS MENTIONED IN THEIR MAPS

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has ordered real estate developers to maintain the same name for project brands as mentioned in their maps approved by local authorities and registered with RERA to avoid confusion among homebuyers.

UP RERA said in a statement that the promoters need to register their projects with the same name as recorded in the sanctioned map and the names of towers and blocks must also be the same as in the sanctioned map.

“RERA had to issue these directions because in the wake of differences between the name of the projects and the towers registered with it and the names in the OC (occupancy certificate) or CC (completion certificate), it was finding difficult to ascertain the completion status of the projects as also to decide the promoter’s application for closure of the project accounts,” it said in a statement.

“It was also observed that promoters were using project brand names which were different from the names registered with RERA and this was creating doubts amongst the existing and prospective home buyers. Therefore, to address such anomalies, RERA has now directed the promoters to market the projects with the same name as registered with RERA,” it added.

2. HOMEBUYERS MUST INCLUDE NAMES OF CO-ALLOTTEES IN THEIR COMPLAINTS

UPRERA has asked homebuyers to include the names of co-allottees also in their complaints. It observed that in some cases the complainants had not included the co-allottees as co-complainants and the RERA Benches had disposed of the complaints after hearing the respective parties which in such cases meant hearing only one of the allottees.

“… UP RERA has decided that the name of the co-allottee shall henceforth be included as co-complainant in the complaints filed by the allottees. Necessary facility is being provided on the portal for this purpose,” UP RERA said in a statement.

It said it has observed that joint allotment of houses or shops is a common practice in which husband and wife, father and son, brother and sister and other blood relations are co-allottees and there are cases where a person other than blood relation, such as partner, and sometimes more than two persons are co-allottee.

“Their interests do not necessarily coincide always and disputes between such co-allottees or co-owners do sometimes arise. The absence of the name of the co-allottee in the complaint lodged in RERA is a lacuna due to which resolution of complaints, execution of orders and further proceedings takes more time than required,” UP RERA observed.

UP RERA has created a facility on its portal where a complainant can file such an application online using his dashboard, it added.

3. UPRERA TO TRAIN NEW AND EXISTING REAL ESTATE AGENTS

The state RERA authority has said that it will train new as well as existing real estate agents across the state and will provide them certificates. It said that it will start a special training and certification program for agents where they will be taught the provisions of RERA Act and UPRERA rules. This is similar to a MahaRERA circular issued last year that had made it mandatory for real estate agents to undergo training and appear for an exam.

4. UP RERA ASKS PROMOTERS TO PROVIDE QR CODE WITH PROJECT DETAILS TO HOMEBUYERS

UPRERA has also asked real estate developers in the state to provide project registration certificates embedded with QR code to existing and prospective homebuyers.

“The registration certificate includes relevant details of the project, including its name, name of the promoter, registration number with details of month and year, its duration, including the start and completion date, the project and the promoter addresses,” it said in a statement.

“The QR code is also loaded with the important conditions of registration like the obligation of the promoter to deposit 70 per cent of the amount realized from the allottees and all the moneys raised through project finance, in a separate bank account for being utilized only to cover the cost of construction and that of the project land,” it said.

UP RERA has directed the promoters to print the QR code loaded project registration certificate and display it at a prominent place in its office and the project site marketing office so that it is visible to prospective and existing homebuyers of the project from a distance, it said.

“The homebuyers can scan the QR code of the certificate using their mobile phones and see the details of the project, including details relating to the land, approvals, quarterly progress report, etc, on the web portal of the authority. The project registration certificate is being issued in Form-C,” it added.

5. UP RERA DIRECTS HOUSING PROJECT DEVELOPERS TO SELL UNITS ON CARPET AREA BASIS

UPRERA has directed real estate developers to sell housing units or apartments as per carpet area only. As per the provisions of the RERA Act and pursuant to other legal agreements and contracts, there is no justification of ‘Super Area’, UP RERA said in a statement.

The sale of apartments on this basis will be considered illegal and according to the provisions of RERA Act, buying and selling of apartments is legal only on the basis of carpet area, it said in a statement.

“There is no abbreviation or definition of Super Area in the RERA Act. It is indeed necessary for allottees to consider Carpet Area as the actual area of the unit or apartment and pay the promoter according to this area,” UP RERA Chairman Sanjay Bhoosreddy has said.
For an agreement for sale between a promoter and an allottee, a model agreement for sale has been provided on the UP RERA portal. This model agreement for sale is also based on carpet area. In this way, selling apartments or units on the base of ‘Super Area’ is contrary to the provisions of the RERA Act, according to the statement.

“Hence, promoters must ensure the sale of units according to the Carpet Area only. Violation of this provision may cause legal action,” the UP RERA added.

A few weeks back, Forum for People’s Collective Efforts (FPCE), a pan-India homebuyers’ association had suggested that a unit within the housing ministry be set up to monitor the functioning of all state real estate regulatory authorities (RERAs).

UP RERA Mandates Consistent Project Naming Across All Documents

In a significant move aimed at enhancing transparency and reducing confusion among homebuyers, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has mandated that promoters must use consistent naming for their projects across all official documents and marketing materials. This directive, issued on March 16, requires that the project names on maps sanctioned by development authorities and those registered with RERA remain the same.

The decision comes in response to discrepancies observed between the names of projects and towers as registered with RERA and those mentioned in occupancy certificates (OC) or completion certificates (CC). Such inconsistencies have made it challenging for UP RERA to verify the completion status of projects and process applications for the closure of project accounts.

UP RERA’s statement highlighted that promoters were marketing their projects under brand names different from those registered, leading to confusion among potential and existing homebuyers. To rectify this issue, promoters are now required to ensure that the names of projects, including towers and blocks, align with those recorded in the sanctioned map and RERA registration. The authority also addressed a common issue where development authorities sanction maps in the name of entities other than the landowners.

According to the RERA Act, promoters must hold title over the project land, necessitating that maps be sanctioned in the name of the landowner. Development authorities are urged to sanction maps accordingly and ensure that project registration applications with RERA include identical particulars to those in the sanctioned map.

Sanjay Bhoosreddy, Chairman of UP RERA, has called upon planning authorities and promoters to adhere strictly to these guidelines. This initiative is part of UP RERA’s ongoing efforts to solve problems faced by allottees and stakeholders in the real estate sector. By ensuring consistency in project naming, UP RERA aims to eliminate confusion among allottees regarding the actual condition of projects, thereby fostering a more transparent and trustworthy real estate market.

This directive is expected to significantly impact how projects are marketed and registered in Uttar Pradesh, bringing much-needed clarity and confidence to homebuyers navigating the real estate landscape.

Source: https://rprealtyplus.com/news-views/up-rera-mandates-consistent-project-naming-across-all-documents-114508.html

UP Replicates Maharashtra’s Real Estate Policies: All About 3 Key MahaRERA Decisions Implemented as Pilot

Uttar Pradesh has adopted three important policy decisions by the Maharashtra Real Estate Regulatory Authority, or MahaRERA, including mandatory QR code for each real estate project’s information; mandatory training and certification for agents; option to deregister non-viable projects subject to conditions.

These are among a host of decisions the MahaRERA has taken the lead, which have a pro-homebuyer long-term impact on the real estate sector. As a result, there is higher transparency in Maharashtra’s real estate sector and also makes developers accountable for their decisions as well as actions. The successful outcome of homebuyers benefiting from the decisions has led other states to adopt MahaRERA’s policies.

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has decided to implement three key policies of its Maharashtra counterpart. The mandatory display QR code along with all project advertisements has been in force in Maharashtra since August 1, 2023. MahaRERA tracks all advertisements across platforms, initiating punitive action against erring developers. Due to the QR code system, homebuyers get comprehensive project information in one click.

In January last year, the MahaRERA had issued a circular making it mandatory for real estate agents to undergo 20 hours of training and appear for an examination. This is another decision, now also applicable in Uttar Pradesh. An agent plays a crucial role during a property sale and is a link between the homebuyer and developer. Hence, it is important to understand legal provisions pertaining to an immovable property as well as regulatory affairs.

Starting January 1, 2024, all agents in Maharashtra cannot conduct business without this certificate. Recently, the MahaRERA cancelled the licences of 13,785 agents registered back in 2017. After the fourth exam conducted for agents, there are more than 10,000 certified agents in the state now.

The third decision to come into force in UP is to cancel a project’s registration if it becomes unviable. The MahaRERA has allowed builders to deregister their projects subject to certain conditions that protects the rights of homebuyers and other investors. In case of a project becoming unfeasible or a change in plan due to regulations or legal disputes, construction comes to a standstill. Such a situation leaves homebuyers and investors in the lurch.

In the interest of all stakeholders, opportunity is given to a developer to deregister a project only after they have met certain criteria, including holding a hearing, as per a circular issued on February 10, 2023. Apart from UP, other states have also shown their willingness to replicate MahaRERA initiatives – standardised agreement for sale, allotment letter, establishment of micro-control room for compliance with regulatory provisions, submission of promoter’s DIN number along with an affidavit detailing promoter’s previous performance as well as other directors involved in the project, appointment of a retired additional collector for compensation-related recovery warrants, grievance cell for homebuyers, reconciliation forum to resolve disputes between homebuyers and developers, suo motu penal action against projects printing ads without MahaRERA registration number and QR code, ‘MahaRERA Grading Matrix’ or grading of real estate projects from April, publication of consultation paper to maintain construction quality, guidelines for senior citizen housing among others.

Source: https://www.news18.com/india/up-replicates-maharashtra-real-estate-policies-all-about-3-key-maharera-decisions-implemented-as-pilot-8817678.html

RERA Certification now a must for all agents in UP

UP RERA will start a training and certification programme for real estate agents in April and allow only agents it certifies to operate from next year. Prior certification will be mandatory for new agents while the ones already registered will have a year to take the course and get a certificate, failing which their registration will be cancelled. Officials said this will help to bring transparency in the real estate sector and boost the credibility of agents, two areas that need serious regulatory intervention to make the process of buying property easier.

“At present, there are more than 6,700 registered agents and their training and certification is essential to bring transparency and credibility in the real estate sector,” Sanjay Bhoosreddy, UP RERA Chairman, said.

Bhoosreddy said the regulatory authority will organise batches of three-day training programmes on the RERA Act, 2016, its provisions and compliance. Agents will have to take an examination after that, and certificates will be issued post-evaluation. The first phase of the training will commence in Lucknow. All real estate agents have to register on RERA portal for the certification programme.

Source: https://timesofindia.indiatimes.com/city/ghaziabad/rera-certification-now-mandatory-for-all-agents-in-up-ghaziabad/articleshow/108358396.cms

Promoters must ensure compliance of issued directions to avoid penalty: UP-RERA

Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) on Friday reviewed the status of the directions passed recently and found that promoters have indulged in non-compliance of its directions besides granting them sufficient time.
During the review, it was found that out of 1,810 promoters, only 666 promoters have uploaded details of director for correspondence. The authority has issued approximately 130 notices to promoters in violation of advertisements rules.
Sanjay Bhoosreddy, chairman, UP-RERA, “The directions had been issued to ensure swift registration, extension along with bringing transparency, responsibility and answerability. We expect that promoters will act as per the directions.”

Hence, UP-RERA has issued an office notice under the provisions of section-37 of the RERA Act to promoters of registered projects and expressed its displeasure about non-execution of passed direction in a time bound manner.
Also, the authority has instructed to ensure the execution of all directions without further delay. According to the provisions of the RERA Act, non-compliance of passed directions from RERA is a punishable act and promoters will be responsible for this. The authority, using its powers under section 63 of the RERA Act, may take strict action and impose appropriate amount of penalty.

In previous months, UP-RERA had issued directions about promotion and advertisements of registered and unregistered projects and mentioning RERA registration number and portal prominently, uploading coordinates of a designated director of organization for correspondence with RERA, update and correct the filled details of projects on the RERA portal, maintain active telephone numbers for consumers and appointing knowledgeable person to answer them and activate helpline numbers for mega projects.

Apart from this, the directions include providing complete details in project registration applications, all three bank accounts with standing instructions to banks to speed up project registration process, utilize model agreement for sale uploaded on the portal for agreement with consumers, uploading all QPRs for approval of extension applications, etc.

Source: https://realty.economictimes.indiatimes.com/news/rera/promoters-must-ensure-compliance-of-issued-directions-to-avoid-penalty-up-rera/105670784

To avail benefits of registration extension, promoters must upload QPR on portal: UP-RERA

Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has directed promoters to upload latest Quarterly Progress Report (QPR) on the portal to avail benefits of extension of project registration. Uploading QPR periodically on portal is one of the key responsibilities of the promoter that enables the consumers of real estate sector to access progress of the project on regular intervals. Pramod Kumar Upadhyay, secretary, UP-RERA said, “Promoters must ensure their responsibility as per the RERA Act which is important for the consumers. Updating QPR on portal is one of them which are completely connected with project completion. All promoters must focus on this part and assign knowledgeable person for this to ensure its implementation and avoid penalty.”

While reviewing applications of extension of registered projects, the Regulatory Authority noticed that promoters have not uploaded QPR of many quarters. Apart from this, promoters of 732 projects have not filled targets and promoters of 356 projects have not updated targets on the portal. Hence, UP-RERA has imposed penalty of Rs 2 lakh per project on 732 projects and Rs 1 lakh per project on 356 projects. The authority has advised promoters fill details of QPR autiously.

They have to ensure that QPRs of past quarters have been filled before filling latest. In case of due QPR of past quarters, they have to pay delay charges. Then only they will be allowed to fill QPR of current quarter. Further, only after updating all QPRs on the portal, the promoters will be allowed for extension of project registration. The projects having completion certificate (CC) and being uploaded on the portal, need to pay delay charges and update QPR till the time of CC obtained.

Source: https://realty.economictimes.indiatimes.com/news/rera/to-avail-benefits-of-registration-extension-promoters-must-upload-qpr-on-portal-up-rera/105111296

UP RERA warns Buyers, Investors against misleading, Fraudulent Ads

NOIDA: The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) on Tuesday termed the advertisements of Sarvottam World as “misleading and fraudulent” and warned buyers and investors against its upcoming project.

The UP RERA noted that a real estate project named ‘Megapolis/Sarvottam Megapolis’ in a hi-tech township named ‘NEWOIDA’ is being advertised by a promoter ‘Sarvottam World’ and being broadcast and publicized on all platforms of media – newspapers, radio, digital, etc, according to an official statement.
“In this regard, we have to inform and warn stakeholders of the real estate sector that the said advertisement is completely misleading and fraudulent. As per the description presented in the advertisement, there is no such project registered with RERA,” UP RERA Secretary Pramod Kumar Upadhyay said.

The mentioned registration numbers in the advertisements – UPRERAPRJ10825, UPRERAPRJ10851 and UPRERAPRJ11033 belong to another promoter i.e Uttam Steel and Associate (Consortium) and Ansal Hi-Tech Township, he said.

“This type of advertisement by the promoter is a violation of the provisions of the RERA Act. This type of advertisement creates waves of a negative image about the promoter towards the stakeholders of the sector. This may likely cause injustice to the buyers,” Upadhyay said.
“This act of the promoter is punishable under RERA Act 2016 and appropriate action is being ensured so that the interests of all the stakeholders associated with the entire real estate sector can be protected and the promoters must ensure to abide by the RERA Act,” he added.

The UP RERA said it is committed to the regulation and development of the real estate sector in the state. It also appealed to potential and future buyers and investors in the
real estate sector that before purchasing or investing in any project, ensure to obtain all the information related to the project through the registration number given in the advertisement that is available on the RERA portal, www(dot)up-rera(dot)in, and then only take a decision.

Source: https://realty.economictimes.indiatimes.com/news/rera/up-rera-warns-buyers-investors-against-misleading-fraudulent-ads/103975646

UP Real Estate Regulator Issues Notices on Noncompliance of RERA Act

The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has issued notices to promoters of four projects in Gautam Buddha Nagar for violation of Section 11 of the Real Estate (Regulation and Development) Act, 2016.

According to the authority, the projects that have been issued the notices include M3M The Cullinan being developed by Lavish Buildmart; Irish Pearls being developed by Irish Infrastructure; Saya Piazza being developed by RGB Infra, and Saya Status being developed by Saya Cementation.

Section 11 of the Act states that it is mandatory to display both the RERA registration number and the respective regulator’s website address prominently when advertising RERA-registered projects on any medium.

“The print advertisement released by M3M The Cullinan did not mention the UPRERA website, www.up-rera.in and RERA registration number prominently. Apart from this, the advertisements on social media of Irish Pearls, Saya Piazza and Saya Status did not mention both the RERA registration number and the website,” UPRERA said in a statement.

Pramod Kumar Upadhyay, the UPRERA secretary, said, “We are continuously identifying promoters violating the rules regarding publicity of projects. Compliance with the prescribed norms of the RERA Act is mandatory for the promotion of projects. Noncompliance with Section 11 can result in a penalty of up to 5 percent of the total project cost.”

He added that the act is aimed to ensure growth and development of the real estate sector and this is possible only if the promoters perform their prescribed functions and duties. The primary responsibility of the promoter is to provide correct information about the project to prospective buyers, the correct registration number and complete project information on the UPRERA website portal, www.up-rera.in.

There was no immediate response to the developments from the promoters. This report will be updated after receiving a response.

Source: https://www.moneycontrol.com/news/business/real-estate/up-real-estate-regulator-issues-notices-on-noncompliance-of-rera-act-11412641.html

Retired IAS Sanjay Bhoosreddy becomes UP RERA Chairman

A new chairman has been appointed in the Uttar Pradesh Real Estate Regulatory Authority (UP RERA). The government has appointed retired IAS Sanjay Bhoosreddy as the chairman of UP RERA.

Retired IAS Dimple Verma has been appointed as member, RERA. Dimple Verma is the wife of Prashant Kumar, Special DGP, Uttar Pradesh.

Selection committee meeting was held in Prayagraj
A three-member committee headed by the Chief Justice has been constituted for the selection of the chairman and members of RERA. In this, Additional Chief Secretary Nitin Ramesh Gokarn and Principal Secretary Justice Pramod Kumar Srivastava were included as members.

In the meeting of this committee, the process was completed by calling and interviewing each and every member who applied for both the posts. After this, the committee sent its recommendation to the government.

The applications of about 23 people for the post of president and about 26 for the post of member were placed before the committee. Many former officers have applied for both the posts.

There were more than 30 contenders for the post of president and member
A meeting of the selection committee was held in Prayagraj on last Saturday for the selection of one post of chairman and member of UP RERA. The meeting, chaired by Justice Manoj Gupta, nominated by the Chief Justice of the Allahabad High Court, considered about three dozen names who had applied for the post of chairperson and one member.

Among them former Chief Secretary RK Tiwari, Sanjay R. The names of several former senior IAS officers including Bhoosreddy, T Venkatesh, Dimple Verma and Aradhana Shukla also figure in the list. After the meeting, the envelope containing the recommendations of the committee was sealed and sent to the Chief Minister.

Source: https://news24online.com/cities/delhi-ncr/retired-ias-sanjay-bhoosreddy-becomes-up-rera-chairman-prn/158952/