#propyogi

As we all know that #RERA Act has been implemented, so, what are those 6 rules of this Act, which will stop builders from delaying the delivery of a buyer’s dream home? Let’s check out what Real Estate (Regulation and Development) Act, 2016 has secured to ensure the timely possession of properties.

 For the buyers of any real estate properties, the delay in ownership of their homes has been a major concern. The delay in possession of properties has been extended to almost six years or more for many of the homebuyers across many locations and many builders.  Without regulator and rules in place, the buyer-builder battle always appeared one-sided.

 Now, the #RealEstate has got its own regulator on May 1, 2017 in the form of RERA Act, which became effective from the same date in the whole nation; and, each state and union territories will be required to have their own Regulatory Authorities that will be framing rules and regulations according to the act.

The developers, who haven’t received a completion certificate, will also be required to get themselves registered. On getting the registration, they will also be needed to follow the rules and regulations of the State Regulatory Authority.

 The Promoters’ Promise:

 The six important provisions in #RERA, which may prevent the builders from delaying the possession of projects and stick to the deadlines instead of making default are given below.

 WRITTEN AFFIDAVIT:

 Under this, the promoters will be necessary to give a declaration that should be supported by an affidavit stating the time frame within which the project will be completed.

 POSSESSION DATE WILL BE REVERED:

 Moreover, the “Agreement of Sale” will be carrying the date of possession with the rate of interest in the case of any default. It is to be remembered that the time frame could be different amongst developers.

 CLEAR TITLE OF THE LAND:

 A written affidavit will be required to be submitted by the promoter, stating that the legal title to the land has legally valid documents and authentication of such title, on which the development is proposed, if such land is owned by another person.

 FREE FROM ENCUMBRANCES:

 The promoter has to submit a written affidavit stating that land is free from all hindrances, as often it has seen that various projects get delayed due to the hindrances that prevent promoters to transfer the title to the property.

 MAINTAINING SEPARATE ACCOUNT:

 Total 70% of the amount released for the real estate projects from buyers, from time to time, would be submitted in a separate account, which will be required to maintain in a scheduled bank for covering the cost of the construction with the land cost and would be utilized only for that purpose.

 Further, the withdrawals from the account will be according to the extent of the work completed after it is certified by an architect, a chartered accountant or an engineer. And, it will be subject to an audit that will be conducted every six-month.

 MAKING IT AN OFFENSE:

 In case of disobeying the rules, the builders will be losing the registration of the project and may also be punishable by imprisonment that may extend up to 3 years or with/without a fine that may also extend up to 10% of the estimated cost of the real estate project or both. However, some states have compounded the offense to avoid the imprisonment of the developers.

 What Happens If Still There Are Defaults?

 Well, the RERA has taken steps to make the promoter responsible and make them submit the compensation and penalty in case of any default in the provisions of the rules. If builder defaults and delays in giving the possession of the property according to the “Agreement of Sale” the buyer will have the right to claim the refund of the amount paid along with the interest. And, if the buyer doesn’t wish to withdraw from the project and doesn’t want the refund, then the promoter will have to pay the interest for each month of delay until handing over the possession.

 Conclusion:

  It is essential that the Act doesn’t get adulterated by the states, and if need be, the center must interfere in this matter. The state regulatory authorities are likely to keep an eye on their execution and take ‘suo-moto action’ (they can do so under the section 5 of the RERA Act) against the developers who are doing any discriminating practice or not following the provisions of the act. Hope, the homebuyers will not suffer anymore by running around and be at the clemency of builders.

To redress the issues of scores of home buyers, who are running from pillar to post to get their homes, the CEO of Noida Authority, Shri Amit Mohan Prasad calls for a meeting with #CREDAI and several other big-ticket developers with projects in Noida, which is scheduled on May 5, 2017 in the boardroom of Sector 6.

 The issues of home buyers’, who have been agitating against builders failed in rendering their residential units to them, will be in the focus in the meeting. Shri Prasad is likely to urge the builders for completing their ongoing construction projects at the earliest rather than putting in new projects and holding up their funds.

The developers are likely to be directed to accomplish the residential projects that have obtained their completion certificates from the authority and are near completion.  

 For the meantime, the authorities of Yamuna Expressway and Greater Noida are also getting ready to take action against malingerer builders in their areas. The developers, who got failed in delivering the residences as promised to the home purchasers and haven’t cleared the outstanding dues to the authorities to the tune of more than Rs. 10, 0000 Crore are on their scanner.

  The chairman of the two areas, Dr. Prabhat Kumar, has set up a committee to look into the home buyers’ issues and realty sector. He held a meeting with the probe committee. On submitting its report with the committee, both authorities are being ready to take action against hundreds of developers in the two regions.

In what comes as a good news for home buyers, the Union Housing Minister, Shri Venkaiah Naidu reported that #RERA has become a law on May 1, after the wait of nine years. The act makes the home buyers the king, while developers to benefit from buyers’ confidence of the home purchasers in the regulated environment. Shri Naidu, in a series of tweets, said that PM’s personal interest in this matter made this Act a reality.

 He said, "The Act ushers in the much-desired accountability, transparency and efficiency in the sector with the Act defining the rights and obligations of both the buyers and developers”.

 The ministry of #HUPA (Housing and Urban Poverty Alleviation) has also verbalized and disseminated the model real estate regulations to be adopted by the regulatory authorities in the states and UTs.  The regulatory authorities will be taking the decisions on all issues. The members of regulatory authorities will be declaring the interest if any in the matters come up for discussion and must not contribute therein.

 The developers will be required to get all the ongoing projects, which haven’t received the completion certificate and the new projects that are registered with the regulatory authorities, by the end of July month. The #RealEstate agents also have only 3 months for getting registered themselves with their respective regulatory authorities.

 The builders will be required to deposit 70% of the funds, which were collected from the buyers in a separate bank account in the case of new projects and 70% of unused funds in case of enduring projects. The projects with a minimum size of 500 square meters or 8 apartments will be required to be registered with regulatory authorities.

 The developers and buyers, both will be needed to pay the same penal interest of SBI’s marginal cost of the lending rate with 2% in case of delays. Developers will now be liable for all construction defects for 5 years.  

 The Real Estate Regulatory Act (RERA) is having provisions for the imprisonment of up to 3 years for the builders and up to 1 year for agents and buyers for violation of orders of appellate tribunals along with regulatory authorities.  

  On May 1 last year, the government notified total 59 sections of the Act, whereas remaining 32 sections have come into the full force from the May 1 this year. All states were needed to inform the real estate rules and set the real estate regulatory authorities and appellate tribunals by April 30, 2017. However, only 13 states and Union Territories have notified the rules, whereas another 16 have prepared the draft rules. States have 3 another month for notifying the RERA rules and assign the regulator.  

In what comes as a good news for home buyers, with an investment of Rs. 4200 Crore, the government has permitted the constructions of 100,537 lakh more affordable homes under #PMAY (Urban).

 In a release, the government said, Madhya Pradesh got 57131 homes constructions that are followed by Manipur with 6,231, Madhya Pradesh got 57,131, Gujarat with 4,261, Tamil Nadu with 24,576 homes, Jharkhand with 331, Chhattisgarh with 4,898, Assam with 2,389, Kerala with 643, and Daman & Diu with 77 homes.

 With this, having a total investment of Rs. 1,00,466 Crore, #HUPA (Ministry of Housing and Poverty Alleviation) has permitted total 1,875,389 homes for the economically weaker sections under Pradhan Mantri Awas Yojana (Urban) in 2151 cities and towns in 34 states and UTs (Union Territories).

 Under the beneficiary led construction element of PMAY (Urban), approximately 1,065,058 houses were sanctioned, wherein the beneficiaries get a central help of RS. 1.50 Lakh each for undertaking the new construction of existing houses.

 Overall 5,87,115 homes are sanctioned under affordable housing in partnership. Under this, the state governments render financial help or land for housing projects for which, central help is given for beneficiary.

 The government has already propelled its flagship “Housing for All by 2022” mission on 25 June 2015. Now, the government is focusing on 15 states and UTs for meeting the Housing for All target by 2019.

 The states that come under focus are Kerala, Jammu & Kashmir, Sikkim, Himachal Pradesh, Arunachal Pradesh, Nagaland, Meghalaya, Manipur, Mizoram, and Tripura along with the Union Territories of Dadra and Nagar Haveli, Chandigarh, Daman & Diu, Andaman & Nicobar Islands and Puducherry.

  The government has asked other states to submit the proposals by the year 2018, so that the construction could be finished by 2022. The states and UTs have also been asked to undertake fresh demand survey for affordable housing. The process is close to the finishing point.

According to the latest updates, the Greater Noida is likely to revise the property rates. Following the guidelines of the area’s chairperson, Dr. Prabhat Kumar, the authority held an initial meeting, when he officially took charge of the reins of the authority. The ACEO, Shri Vimal Sharma was the chairperson of the meeting. The meeting was held for discussing whether the property rates in Greater Noida can be revised. The ACEO said, “The aim is to make the area more attractive to entrepreneurs and investors.” 

He further added, “We held a preliminary meeting on April 26 with all departments. A report will be submitted by them within a week. Departments have been told to examine if land rates of any land use need to be revised, reduced, hiked or kept static. This proposal will be submitted to CEO Amit Mohan Prasad and the chairperson. All property rates including commercial, industrial, institutional, residential and group housing will be examined and new rates, if any, will be proposed.”

According to the latest news, Shri Venkaiah Naidu, the Union Housing Minister, said that all the real estate projects and property agents need to be registered with the regulatory authorities before July 31. As per the #RERA rules, all states have to establish regulatory authorities and the appellate tribunals maximum before April 30 deadline.

 Shri Naidu said, “The remaining 32 Sections of Real Estate Act, 2016 have already been notified on Wednesdey. Projects and real estate agents have to be registered with regulatory authorities within three months from May 1.”

 The government notified the remaining 32 sections of the RERA Act 2016, relating to the registration of ongoing projects that haven’t acquired completion certificate, penalties for non-compliance, registration of property agents etc. It had imposed other 59 sections of the act from May 2016.

 Shri Naidu informed that total 13 states and union territories have notified the rules till now and another 16 have prepared draft rules. According to the housing minister, the government has been regularly monitoring the situation with all union territories and states in this regard.

As per the latest updates, JAYPEE, a real estate development giant, has claimed that the construction at its mammoth Wish Town Project in Noida is expected to start in the upcoming week as the company has received RS 1,800 Crore from banks to restart this work.

 Work on the project with some Thirty Tow Thousand flats, and Three Thousand plots across eight hundred acres along with the Noida-Greater Noida Expressway had come to a standstill with JAYPEE having handed over five thousand five hundred flats.

 However, Shri Manoj Gaur, the executive chairman of Jaiprakash Associates Ltd, assured agitating home purchasers that the construction on 50 towers is expected to start by April 24, and on another 70 by April 29. There are total 305 towers in Wish Town out of which, 250 are incomplete. JAYPEE said that it is likely to release the construction schedule of all the towers by April 29.

 He further added that the company has received the approval for completing the sale of its cement plants for RS. 16500 Crore to Shri Kumar Mangalam Birla Group Company, Ultra Tech Cement, banks have agreed for extending the working capital of RS. 1800 Crore to the company.

 Shri Gaur said that the working capital is likely to help meet the immediate funding needs to begin the construction work. And, once the work will start, money from the home purchasers would pour in as they are tied to a construction linked building plan. The #homebuyers' involvement still due is, Rupees 7000 Crore.

 Approximately Twenty-Seven Thousand buyers are agitating against the developers, as they haven’t got the possession of their promised flats. They said that the developers had made the promises earlier too but didn’t keep them. However, Shri Gaur said that due to the unforeseen circumstances, the company couldn’t keep its promises in the past. He said, “Now as working capital has been released by banks, we will be able to meet the new timeline.”

 He further added that the company is going to update its website soon and from the month of June, a mechanism will be in place, which will update each and every information on the site related to the construction.

 Till now, the company has delivered 5500 apartments and 3000 plots. And, by March 2018, the company claims that it would deliver another 6000 apartments. Shri Gaur claimed in 2018-19, the company would deliver 8000 apartments and the remaining ones would deliver by 2020. So far, the company has launched 32000 #apartments out of which, 1500 are unsold.  

  Shri Gaur hoped that the cash flow in the company would improve with the beginning of construction, which will help to expedite the completion of the flats. He said that the real estate market is expected to improve in the next one year, which will enable the company to monetize its unsold units and unused lands

As per the latest news, from May 1, the much-awaited Real Estate Regulatory Act (RERA) will come into full effect. The government has urged states for notifying the rules and regulations and set up the regulatory authorities in the set time frame.

 Shri Rajiv Ranjan Mishra, the Joint Secretary of Ministry Of Housing and Urban Poverty Alleviation said, “RERA will come into full effect from 1st May 2017, and we request the states to expedite the process” at two-day national review and consultation meet, which was organized in Delhi on #PMAY (Urban).

 The government urges states to expedite the process and notify the real estate rules encompassing the general rules & agreement for sales rules and establish the real estate regulatory authorities with the appellate tribunal maximum by 30th April 2017.

 Nonetheless, only four states- Gujarat, Madhya Pradesh, Maharashtra, and Uttar Pradesh with six Union Territories notified the final rules.  The government has also given a warning to the states of a severe situation of vacuum arising if needed institutional mechanism for #RERA were not put in the place before the deadline.    

 The Minister of Housing and Urban Poverty Alleviation (#HUPA), Shri Venkaiah Naidu wrote a two-page letter to all the chief ministers of all states on the February 9, in which he said, “Real Estate Act is one of the most important reforms for the sector, which would bring benefits to all stakeholders. It is therefore, my sincere request to please bestow your personal attention to this matter so that the Act is implemented in time and in the spirit with which it was passed by the Parliament.”

  Shri Naidu notified the Real Estate (Regulation & Development) Act, 2016 on May 1 previous year for the six Union Territories without a legislature. The Ministry of Housing and Poverty Alleviation were also supposed to act as the model rules for other states.