Madhya Pradesh RERA tightens the noose on violators, plaints drop 40%

INDORE

Madhya Pradesh Real Estate Regulatory Authority (RERA) has witnessed a sharp drop in cases from Indore in the past two months with number of complaints dropping to 60 per hearing as against over 100.

Of the three RERA centres in the state, Indore gets highest number of complaints from customers, followed by Gwalior and Jabalpur. But in past few months complaints have reduced.

RERA member A D Kapaley said, “Cases have dropped significantly from over 100 to just 50 to 60 per hearing. This is a good sign indicating increased compliance resulting in fewer grievances from the customers.”

RERA hears cases thrice in a month in Indore as against once in a month in Gwalior and Jabalpur. Most of the cases in Indore are related to delay in possession for residential property, lack of development and unfulfilled promises under a deal.

Kapaley said, “Most of the cases in Indore were related to a few projects after the promoter duped hundreds of customers. As they are getting resolved gradually, new complaints are very few and this is really a good sign.”

Recently, the authority sent notice to an Indore-based realtor for not keeping promises made to customers even after receiving 80% of the payment.

Kapaley said, “Complaints were brought to our notice after which sent a notice to builder and denied registration in RERA for any future projects when he approached the authority for extension of his existing projects.”

In the total 45 cases received by the RERA against the realtor, it directed promoters to return money to customers. Until now over a dozen of customers have received demand drafts from the promoter.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/madhya-pradesh-rera-tightens-the-noose-on-violators-plaints-drop-40/69317729

UP-RERA directs authorities to start registration of projects

Noida

The Uttar Pradesh real estate regulator has asked local authorities to start the registration process of realty projects under the RERA Act for making builders accountable and addressing rising complaints from buyers in the state.

UP Real Estate Regulatory Authority chairman Rajive Kumar in a statement said the authority has received about a 1,000 complaints with respect to projects and promoters from outside the planning areas mainly from the districts of Lucknow and Barabanki.

The complaints vary from non-implementation of the projects to the promoter having run away with the money of the buyers, he said.

The RERA Act applies only to the real estate projects with area of 500 sq metres or more and with eight apartments or more in planning areas.

“RERA cannot extend relief to such buyers unless the project can be registered in Rera and invited the attention of the participating officers to the provisions of Section 3 of the Rera Act wherein a provision has been made that in order to protect the interest of the buyers it can direct a promoter to register in Rera a project outside planning area and that the provisions of Rera will apply to such a project from the date of its registration in RERA,” he added.

The UP RERA chief held a meeting at the RERA office in Greater Noida to discuss approval and regulation of layout plans of the real estate projects outside the planning areas.

The meeting was attended by Anurag Srivastava, Principal Secretary of Panchayati Raj, Mahendra Prasad, Secretary of Industrial Development and CEO LIDA, Preeti Shukla, Secretary of Panchayati Raj, Ajai Chauhan, Housing Commissioner, Masoom Ali Sarvar, Director of Panchayati Raj, MP Singh, Secretary of Lucknow Development Authority, among others.

Kumar, however, clarified that a project can be registered in Rera only if the layout plan of the project has been approved by the concerned local authority, which means zila panchayat in most of the cases.

Rera has already engaged UP Remote Sensing Application Centre for carrying out the site inspection of real estate projects within 10 km of LDA limits in the districts of Lucknow and Barabanki with the help of satellite data, according to the statement.

Anurag Sivastava, principal secretary, said in some of the Zila Panchayats the bye-laws relating to the approval of the projects have not been adopted so far.

However, he assured to direct the districts concerned to adopt the bye-laws soon.

“They will also work effectively to check the breaches of the sanctioned plans or the development of real estate projects without required approvals,” according to the statement. The progress would be reviewed next month, it added.

Source: www.realty.economictimes.indiatimes.com/news/regulatory/up-rera-directs-authorities-to-start-registration-of-projects/69335068

MahaRERA still has jurisdiction over projects that have an OC

Housing regulator rules in favour of home buyer seeking damages from developer in lieu of a project whose possession was delayed by two years.

Housing regulator Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered a developer to pay a home buyer interest for delaying the project.

While ruling in favour of the home buyer, the authority stated that it has jurisdiction over an ongoing project even after an Occupancy Certificate was issued to the developer, adding that it can adjudicate the dispute despite an arbitration clause in the agreement.

The ruling came on a complaint filed by Suresh Swamy, who had booked flat No. 301 in Tower T8 of Emerald Isle project in Powai where he was supposed to move in by September 2017. He was seeking interest on the amount he had paid till actual possession. MahaRERA ruled in Swamy’s favour directing developer L&T Ltd to pay simple interest at 10.75 per cent on a sum of Rs 4.69 crore from October 1, 2017, for delayed possession.

Advocate Manish Gala, appearing for L&T Ltd had argued that the authority had no jurisdiction in the matter due to three key factors. Firstly, they argued that the Occupancy Certificate for Tower T8 had been received on December 21, 2018, well ahead of the December 31, 2018 revised possession deadline given to MahaRERA and hence there was no delay. The developer said the project is complete and since it is not an ongoing real estate project, the Authority does not have jurisdiction to entertain the complaint.

Secondly, the developer contended that the agreement for sale was executed under Maharashtra Occupation of Flats Act (MOFA) and Section 18 of RERA cannot be applied retrospectively. Thirdly, the agreement for sale had an arbitration clause and hence the dispute should be referred to the Arbitrator under Section 7 of Arbitration and Conciliation Act, 1996.

Adv Anil Dsouza, appearing for the home buyer pointed out that the OC was a Part OC issued by the BMC and the developer was erroneously using the term.

Rejecting the argument that it no longer has jurisdiction after OC is received or possession is offered, MahaRERA member Bhalchandra Kapadnis cited several sections in RERA to support his point. He said Section 7 and 8 of RERA obligates the Authority to carry out remaining development work if the registration of the projects gets revoked. He said section 14 (3) of RERA provides that if any structural defect or quality defect is found within five years from the date of possession, the promoter is duty bound to rectify such defects without further charge within 30 days.

“Therefore, I hold that the jurisdiction of the Authority is not lost only because of the receipt of the occupancy Certification or on completion of the project or when the possession is offered,” he observed. He cited the HC judgment in Neelkamal Realtors case to rule that RERA provisions are applicable to agreements executed even before it came into operation on May 1, 2017.

Source – https://realty.economictimes.indiatimes.com/news/regulatory/maharera-still-has-jurisdiction-over-projects-that-have-an-oc/69300982

Tamil Nadu RERA to publish plaints against builders

Chennai

Homebuyers can now be doubly cautious and steer clear of dubious developers soon as the Tamil Nadu Real Estate Regulatory Authority (TNRERA) will list the complaints filed against developers on its portal.

Buyers can make use of the information made public. So far, only the final orders of the authority over issues with housing projects were available on the TNRERA website. “Currently, we are uploading only the final orders of the complaints. Now, the feature providing details of complaints will be made available for the benefit of homebuyers,” an official from TNRERA told TOI.

TNRERA sources said the information would be added to the ‘complaints’ link on the homepage of the authority’s website.

“We are looking at introducing this feature in another 15 days or by June. The purpose is to make the portal transparent, such that the consumer gets details of complaints at the click of a button,” the official added.

Details such as name of the complainant, nature of the grievance, the developer’s name and the name of the housing project would be provided in the link. The prayer for which the complaint has been filed would also be provided. This would help prospective buyers to take a considered decision on whether to invest in the project.

The realty regulator has received about 750 complaints against 55 housing projects since its inception in June 2017. More than 90% of the housing projects against which complaints were filed were in and around Chennai. The authority has delivered final orders for 40 complaints in the past two years.

TNRERA came into existence after the state government notified the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017. As per the rules, registration of all ongoing housing projects with a minimum of eight units and new residential layouts, is mandatory. Till April, 980 housing projects and layouts have been registered with the TNRERA since its inception. Majority of these projects are in Chennai and its periphery, Kancheepuram and Tiruvallur districts.

Source – www.realty.economictimes.indiatimes.com/news/industry/tamil-nadu-rera-to-publish-plaints-against-builders/69277392

UP-RERA plans to adopt projects left midway by developers

Noida

Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has resolved to adopt projects that have been abandoned by builders midway and whose completion date has expired. The regulatory body has estimated that there could be 100 such abandoned projects in the state’s NCR cities.

Following a meeting with officials of the Greater Noida Industrial Development Authority (GNIDA), the UP-Rera officials announced on Thursday it will draw a true estimate of the number of projects which have been left midway by builders and have exceeded their completion dates so as to draw a resolution.

“There are about 100 such abandoned projects where the builder has deserted a project midway and is untraceable. Many of these have also expired their completion dates. We will now find a way to adopt them and resolve their fates. Work on this will start soon,” UP-Rera member Balwinder Kumar said.

Moreover, UP-Rera has also appealed to all developers who have not come forward to get their projects registered with the real estate regulator to do so at the earliest, else a fine to the measure of 10% of the project cost will be imposed.

“So far, we have not exercised this clause in NCR, but there is provision in the UP-Rera Act to impose a 10% fine for not registering a project and we have now decided to start sending notices. By our estimates, there could be 300 projects that have dodged UP-Rera registration and would be sent notices,” Kumar added.

According to the UP-Rera officials, there are 4,850 NCR-based cases pending before the regulator. The Greater Noida office of UP-Rera has recently set up a third bench to accommodate cases faster.

Source – www.realty.economictimes.indiatimes.com/news/industry/up-rera-plans-to-adopt-projects-left-midway-by-developers/69261297

MahaRERA to focus on 70 ‘stress’ projects in Maharashtra

Pune

The Maharashtra Real Estate Regulatory Authority (MahaRERA), which completed two years on May 1, will shift its focus on housing projects that are under stress and incomplete for various reasons.

The regulator has identified 60-70 such “stressed” projects in the state — mainly in Pune, Mumbai and Thane — and has chalked out a plan to reach out to the members of such projects; to guide them in forming an association and help them complete the project.

In March this year, MahaRERA had issued a standard operating procedure (SOP), allowing homebuyers to remove a developer in case the project was delayed, and hand it over to an expert panel for completion — with the regulator monitoring the proceedings. This step could be initiated only if at least 51% of the homebuyers affected by the delayed project gave their consent.

Over the last two years, more than 20,000 projects have been registered with MahaRERA in the state — the highest in the country. However, the number of completed projects stands at a little over 4,500.

Among these registered projects, there are many yet to be completed despite the issuance of orders and even recovery warrants, allowing the revenue authorities to auction the property and return the money to homebuyers.

“The (March) order was issued to benefit those affected by such stressed projects, where the developer has not been able to complete the project due to a paucity of funds or any other reason, and homebuyers are stuck with the project for long periods of time. We have assessed 60-70 projects in three cities and now plan to reach out to the complainants as well as the remaining members,” MahaRERA secretary Vasant Prabhu said. The regulator is planning a workshop for affected buyers.

MahaRERA had issued the order under Section 37 of the Real Estate (Regulation and Development) Act (RERA). Under Sections 7 and 8 of RERA, a regulator can revoke the registration of a project as well as remove the developer, provided 51% of the project allottees agree on such an action. A separate panel under MahaRERA, with the help of experts, would carry out the remaining development work and take the project forward to completion.

However, there’s a caveat: this process will be possible only for non-litigated projects.

Once the revocation orders are issued, the developer will lose all right to the project. The authority will set up a panel to prepare a project report within four months to decide the future course.

Source – www.realty.economictimes.indiatimes.com/news/regulatory/maharera-to-focus-on-70-stress-projects-in-maharashtra/69184915

Property Registrations Under RERA Rise Across The Country

After 2 years since the onset of RERA, property registrations across the country have risen and buyers are coming forward in large numbers to seek relief from dubious builders.

Property registrations under RERA are increasing continuously. The registrations across the country have increased especially between November 2018 and April 2019. According to Anuj Puri, Chairman of ANAROCK Property Consultants, 307 projects have been registered under RERA in Andhra Pradesh. In November 2018, Andhra Pradesh RERA had recorded only 61 property registrations. Maharashtra leads with more than 20,718 projects registered and 19,699 RERA-registered real estate agents. In the southern state of Karnataka, 2,530 projects have been registered while 1,342 real estate agents have been registered under RERA.

Gujarat boasts of 5,317 RERA-registered projects and 899 registered agents and agencies. After two years since RERA was implemented, the property registrations across the country has been rising. The north-eastern states of Manipur, Meghalaya, Mizoram, Nagaland and Sikkim are soon going to notify RERA rules. The north-eastern states have been earlier reluctant to comply to RERA rules. However, these states are soon going to adopt RERA regulations to increase transparency across the sector. West Bengal has framed its own real estate law under the West Bengal Housing Industry Regulatory Authority (WBHIRA). As of now, 22 states and 6 Union Territories have already implemented RERA. 19 states have active online RERA portals while West Bengal has its own portal.

Anuj Puri said that each of the states with active portals have recorded a rise in project and agent registrations since November 2018. He noted that even while fretting about the dilution of the rules notified, buyers have been bestowing their faith in the law and coming forward in large number to lodge complaints against developers for various reasons including project delays.

MahaRERA has registered 6,631 complaints until April. According to the state authority, 64 percent of the complaints have been disposed. Also, there are cases of developers delaying payments and not attending hearings which need to be resolved. A huge number of consumers are registering complaints across the country which shows the increasing faith in the redressal system among buyers.

Source: www.realtynxt.com/2019/04/30/property-registrations-under-rera-rise-across-the-country

Gujarat second in number of works under RERA

Ahmedabad

Gujarat has left behind all other Indian states except Maharashtra in registration of projects under the new realty law — Real Estate (Regulation and Development) Act (RERA) — which had come into effect almost two years ago.

As many as 5,317 real estate projects have so far been registered with Gujarat’s real estate regulatory authority, the number being the second highest in India after Maharashtra, shows data compiled by ANAROCK Property Consultants. Apart from this, 889 real estate agents and agencies have registered themselves with the RERA authority in the state.

Maharashtra tops the list of states in RERA compliance with 20,718 registered realty projects and about 19,699 real estate agents. According ANAROCK, project and real estate agent registrations have been on the rise across most states from November 2018 to April 2019. Maharashtra leads the race followed by Gujarat.

“The compliance in Gujarat is very strong due to the laying of a well thought-out regulatory regime. There were technological and transitional issues, but the state regulator proactively provided handholding support to promoters and professionals,” said a real estate industry expert.

The credit should also go to the state’s realtors and professionals, said experts, for their willingness to adopt the new regime. Professionals swiftly understood the requirement of the regulator and guided the promoters in the right direction.

At present, 22 states and 6 Union territories have already notified their RERA rules, out of which 19 states have active online portals. West Bengal too has an active portal for its own real estate law.

Source: www.realty.economictimes.indiatimes.com/news/industry/gujarat-second-in-number-of-works-under-rera/69107187

Be more vigilant of developers’ escrow accounts: UP RERA asks banks

Noida

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) said it has sent letters to the zonal heads of all 42 banks to be more vigilant of the escrow accounts of the promoters and developers.

A copy of the letter has also been sent to the director general of the Directorate of Institutional Finance, Government of Uttar Pradesh, UP RERA said in a statement.

The authority has asked banks for strict compliance of the provisions of Section-4 (2) (I) (D) of RERA Act, 2016, which warrants 70 per cent of amounts realised for real estate projects to be deposited in a separate account and to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for limited purposes.

UP RERA Chairman Rajive Kumar said, “It has come to the notice of the Authority that some of the promoters are not complying with the statutory provisions of the law and withdrawing the amount from the designated account without submitting the requisite certificate. This is grave violation of the mandatory provisions of the Act.”

UP RERA Secretary Abrar Ahmed said the separate accounts related to 2,651 projects registered in RERA are being maintained in 962 branches, some of them are based out of Uttar Pradesh. “We have sent separate individual letters to all the 962 branches by speed post.”

It has also come to the notice of the Authority that some of the banks, especially the ones that have sanctioned loan to the promoter, arbitrarily adjust the entire amount deposited in the account against the outstanding loan of the promoter instead of transferring 70 per cent of the money collected to the escrow account for the purposes of construction and payment of the cost of land of the project, the statement said.

“The banks are requested to issue necessary instructions to all of the regional managers, deputy general managers, assistant general managers (and) branch managers to strictly comply with the provisions,” Ahmed said.

It is further clarified that if the banks do not adhere to the provisions of the Act, the matter will be brought to the notice of the chairman of the respective banks and the secretary of the banking department of the Government of India for appropriate action in the matter.

In total, there are 42 scheduled commercial banks — 21 each public sector and private sector lenders.

Source – www.realty.economictimes.indiatimes.com/news/regulatory/be-more-vigilant-of-developers-escrow-accounts-up-rera-asks-banks/68748179

RERA Turns 2

It’s been two years since the deployment of the Real Estate Regulatory Authority (RERA) across India and the Centre’s aim of enforcing it in each state is gathering visible momentum. Even the north-eastern states including Manipur, Meghalaya, Mizoram, Nagaland, and Sikkim – which earlier shied away from it – have agreed to officially notify RERA rules soon. West Bengal is the only state which notified its own real estate law under West Bengal Housing Industry Regulatory Authority (WBHIRA).

Rohit Poddar, Joint Secretary, NAREDCO West and Managing Director, Poddar Housing and Development Ltd. states, “RERA has been a huge success in Maharashtra, the trust gap between the developer and the seller has largely been bridged. RERA has been very quick to address the issues of the developers and giving judgments on the conflicts between the buyer and developers. Reconciliation process through arbitration cell has become faster and convenient for the customers in case of delay in possession, which has consolidated the confidence of the buyers in the market. MahaRERA is the best RERA in India.”

It may be recalled that RERA intended to cover developers as well as real estate agents seamlessly across the country. As it stands now, 22 states and 6 Union Territories have already notified their RERA rules, out of which 19 states have active online portals. West Bengal too has an active portal for its own real estate law.

Manju Yagnik, Vice Chairperson, Nahar Group & Vice President NAREDCO (MAHARASHTRA) – “One of the biggest and most important action in the industry was implementation of RERA. The challenge of bringing it in the ambit of regulation has been a journey that is still progressive in nature as many questions still do not have the answer. However the real estate machinery has changed with this development.”

Things are changing for the better. Generally, players are far more accountable and cannot easily get away with breaking the RERA rules.

“There are ample amount of reasons to celebrate the second year anniversary of the much needed RERA, the implementation of which was envisaged to bring in transparency in the industry, has definitely achieved what it was set out for. Developers today are committed more than ever on the delivery of the projects; it has also brought discipline in the usage of funds. All in all RERA has brought in some positive changes amongst the industry, along with increased accountability, transparency and efficiency.” Rahul Grover, President Sales and Operations at Sai Estate Consultants.

Amit Ruparel, Managing Director, Ruparel Realty on RERA completing 2 years, shares “The Real Estate Regulation & Development Act (RERA) is a landmark legislation poised to catapult the sector into its next phase of growth, laid on the foundation of being transparent, competitive, hassle-free and consumer-centric, which certainly benefits corporate developers like us and most importantly the home buyers.”

Source: www.realtyplusmag.com/rera-turns-two