MahaRERA allows builders a second chance if homebuyers agree

Maharashtra

The Maharashtra Real Estate Regulatory Authority has decided to give developers a second chance to complete delayed projects after the usual extension of a year, provided over 50% customers of the property concerned agree to it.

Vasant Prabhu, the Maharashtra Real Estate Regulatory Authority (MahaRERA) secretary, said an order was issued last week to give genuine developers a second chance to complete a stalled project if the consumers were willing to wait. He said, “The extension is subject to consent of more than half the flat buyers and a time-frame would be set.”

Prabhu said, “We were getting complaints of delay in project execution. With this order, consumers can take a call on if they want to continue with the project. If more than 50% consumers agree, we can give an extension to the developer.”

Nearly 90% of the complaints registered with the MahaRERA are regarding delay in execution of projects. State president of Credai Shantilal Kataria said the order would not only benefit the consumers, but also the developers.

“It is neither easy for a consumer nor a developer to cancel a project. Given more time, genuine developers will complete projects within the time-frame decided by both the parties,” said Kataria.

The real estate sector faced a rough patch in the past two-three years. It is slowly on the recovery path. Property consultants closely monitoring the market stated that the real estate sector was set to grow this year.

“The issue of stalled projects and liquidity crisis continued to confound the housing sector last year though it continued its transition into a relatively more transparent and end-user driven market,” said Anuj Puri, chairman of Anarock Property Consultants. He added that builders were extremely cautious about launching new projects to align supply with the existing buyer demand.

Mumbai Grahak Panchayat (MGP) – the consumer forum taking up the issues of MahaRERA from the inception-welcomed the move of giving a say to the consumers but stressed that the authority should have specified that the “association of allottees” should be appointed after 50% booking of flats in a project was done.

Sources – www.realty.economictimes.indiatimes.com/news/regulatory/maharera-allows-builders-a-second-chance-if-homebuyers-agree/67985471

Tamil Nadu RERA chief (Chairperson) appointed

Chennai

After an inordinate delay, the state government has appointed K Gnanadesikan chairperson of the Tamil Nadu Real Estate Regulatory Authority (TNRERA). The state made the appointment more than a year after the regulatory body was set up.

Gnanadesikan will take over the duties from S Krishnan, secretary of the housing and urban development department, who was also serving as the interim chairperson of the regulatory body.

S Manohar, engineer-in-chief, buildings, public works department and V Jeyakumar, advocate have been appointed as its members. N Balasubramanian, retired district judge, as its judicial member and Leena Nair, retired IAS officer, as the administrative member of the tribunal.

TNRERA was set up in June 22, 2017 with an aim to protect the interest of home buyers. According to the Real Estate (Regulation and Development) Act, 2016, every state government must establish a real estate regulatory authority within one year from the date of the Act coming into force through a notification. The body must consist of a chairperson, and not less than two full-time members.

However, since its establishment no appointments were made in Tamil Nadu.

The state also defied an order of the Central Advisory Council, which monitors the implementation of RERA, directing authorities to appoint a permanent regulator by June 30. While the state has finally appointed a new chairperson, he is due to retire in April.

The chairperson of TNRERA is vested with powers to direct and discharge administrative functions and address and dispose grievances of homes buyers. The members of the authority can only assume office after the chairperson has.

Sources
1. www.realty.economictimes.indiatimes.com/news/regulatory/tamil-nadu-rera-chief-appointed-after-more-than-years-delay/67910824
2. www.newindianexpress.com/cities/chennai/2019/feb/09/k-gnanadesikan-new-chairman-of-real-estate-regulatory-authority-1936448.html

Home Inspection Industry – Seeds starting to bloom

RERA Updates

  • A Brand New concept was launched for the First Time in India couple of years back by 5 – 6 mavericks simultaneously having started, home inspection services.
  • Leading professionals (from IIT / IIM / Google / SAP / Wharton / ICAI) launch the home inspection services across major Indian cities including Kolkata, Mumbai, Bangalore, Gurgaon, Delhi, Pune, Chennai, Navi Mumbai, Goa, Kohima, etc.
  • These companies include MACJ – A Buyers Choice Home Inspections, HomeInspeKtor, E-ghar, Checkmyprop, Nemmadi, meazurement, etc.
  • All these companies have now come together and formed the “Home Inspection Association of India”, a milestone achieved in the country.
  • The Association has been formed with the objective to have a common platform for the growth, development & regulation of Home Inspection Industry in India with the objective of ensuring Healthy and Safe Homes.
  • This development has major significance in the background of RERA (Real Estate Regulation & Development Act) being enacted to promote Transparency & Efficiency in the sale of Real Estate projects and to protect the interest of Home Buyers in the Real Estate Sector.

Visit: www.macj-abuyerschoice.com/welcome-to-the-sunshine-industry-professional-home-inspection-services/

MahaRERA Strives to encourage greater accountability, transparency and trust in the Real Estate Sector

MahaRERA Updates

  • Project Registration Status
    • Projects Registered but not completed: 15796
    • Projects Registered and completed: 3587
    • Projects yet to be Registered: 109
  • Realtor Registration Status
    • Registered Realtors: 17980
    • Realtors yet to be Registered: 186
  • Complaint Disposal Status
    • Complaint Received and disposed: 3422
    • Complaint in process of hearing: 2108

MahaRERA website: www.maharera.mahaonline.gov.in

Projects & Realtors Registration status under WBHIRA

WBHIRA

  • Registration of Real Estate Project with West Bengal Housing Industry Regulatory Authority (WBHIRA) is compulsory under U/s 3 West Bengal Housing Industry Regulatory Authority (WBHIRA) Act.
  • Total number of Registered Projects in West Bengal under WBHIRA Authority – 340.
  • Out of which Registered Projects in Kolkata under WBHIRA Authority – 102.
  • Total number of Registered Realtors in West Bengal under WBHIRA Authority – 138.
  • Out of which Registered Realtors in Kolkata under WBHIRA Authority – 96.
  • WBHIRA Website: www.hira.wb.gov.in

Realtors can’t lure investors by promising ‘assured returns’

RERA Haryana

Terming such schemes as “fraud”, the authority said SEBI has already declared “assured returns” as illegal Ponzi schemes.

GURUGRAM: Haryana Real Estate Regulatory Authority (H-Rera) is going to issue notices to developers who are trying to lure people to invest in their residential and commercial projects, promising “assured returns”.

To lure people to invest in their real estate projects, many developers are offering “assured returns” schemes, in which investors in residential projects are assured of a fixed rental income, while in commercial projects, those assured returns go up to as much as 12%.

“It has come to our notice that many real estate firms are trying to lure investors through “assured returns” schemes, which is basically a financial scam promising very high returns,” said Gurugram H-Rera chairman K K Khandelwal, adding the body is preparing a list of such companies for criminal action by the authority.

Source: https://economictimes.indiatimes.com/wealth/real-estate/realtors-cant-lure-investors-by-promising-assured-returns-rera/articleshow/66876815.cms

Customer is the King: Maharera, Mumbai’s Landmark Judgement on (Refund of Amount with Interest for Delayed Possession)

MahaRERA Updates

In, Avinash Saraf versus Runwal Homes Private Limited case, the landmark judgement given by MAHARERA, Mumbai, having complaint number 32, Dated 13th October 2017. Final judgement is given by Honorable Shri B. D. KAPADNIS. The complainants contended that they have paid 97% of total consideration of the flat. The date of possession of the flat was August, 2016, as per agreement of sale executed in November 2014, but the respondent failed to give the Possession in time.

And hence the complainant demanded the amount of consideration with interest @ 21% p.a. from the respondent with compensation for amount expended towards stamp duty and registration charges.

The respondent contended that MAHARERA has come into effect from 1st May 2017. Therefore MAHARERA has no jurisdiction entertain this complaint. The date of possession was delayed due to delay in getting permission for constructing parking from MCGM (Municipal Corporation of Greater Mumbai), for the reasons beyond control of the respondent.

Now point for consideration before The Honorable judge was whether the complainant is entitled to get back the amount paid to respondent with interest and compensation? He answered affirmatively with the following reasons.

The cause of action for claiming possession after the lapse of agreed date of possession becomes recurring course of action. Therefore MAHARERA has the jurisdiction under section 79 of the Act. The reasons given by respondent for delay in possession is also not acceptable, since the agreement was executed in November 2014 it means the respondent was aware of the time for giving possession.

Finally honorable judge has delivered the following judgment.

To refund entire amount paid to the respondent till date with interest and compensation for amount paid towards stamp duty and registration charges. Rate of interest upto the date of 30th April 2017 was decided @ 9% per annum. And from 1st May 2017 the rate of interest was decided to be the interest at SBI’s highest marginal cost of lending rate + 2% p.a. till the date of final payment to the complainant.

The complainant got finally Rs. 1,74,17,986/- + Rs.8,86,800/- towards stamp duty registration charges + Rs. 11,00,000/- towards interest till 30th April 2017 + interest at SBI marginal cost of lending rate plus 2% p.a. till the date of final payment to the complainant.

Soure: https://taxguru.in/corporate-law/customs-king-maharera-mumbais-landmark-judgement-refund-amount-interest-delayed-possession.html?amp

Final Order of Judgement.pdf

KRERA not yet Fully Functional

RERA Kerala

  • The Government of Kerala notified the Real Estate (Regulation and Development) Act, 2015 on 03/02/2016. However it shall be deemed to have come into force on the 4th Day of May, 2015.
  • Sri. S. Ajayakumar (Retired Chief Town Planner), is appointed as the first Chairman of Kerala Real Estate Regulatory Authority.
  • The office space for Real Estate Regulatory Authority allocated at the 5th floor of Swaraj Bhawan, Nanthancode, Thiruvananthapuram 695 003.
  • Website Launched (www.rerakerala.org/Content/log.aspx)

RERA Madhya Pradesh fully Operational

RERA Madhya Pradesh

  • The State Govt notified the Madhya Pradesh Real Estate (Regulation and Development) Rules, 2017 on 22nd October, 2016.
  • Mr. Anthony de Sa, I.A.S. (Retd.) appointed as Chairman.
  • Launch of RERA Website & Web Application at 12:00 Noon on May 1, 2017 (www.rera.mp.gov.in/)
  • The office of Madhya Pradesh Real Estate Regulatory Authority is situated at RERA Bhavan, Arera Hills, Main Road No. – 1, Bhopal – 462011.