Monthly Corporate RERA Bulletin
- Homebuyers can verify project details on Rera website
The authority has now warned the public to exercise caution while dealing with 29 builders, including some big names, who have failed to upload details.
Homebuyers beware! You just cannot sit back and relax if a builder claims that his project is registered with the Kerala Real Estate Regulatory Authority (K-Rera). Do check the authority’s website to see whether the developer has updated all relevant details of the project on the authority’s website — www.rera.kerala.gov.in
Recently, the authority had sent show-cause notices to promoters, including builders and developers, who obtained registration for their projects but failed to upload the required details on the website. As per the rule, promoters have to upload project details including necessary licences and sanctions, on the website. Also, the promoter has to update the progress of work in every quarter of the year until the last unit is handed over.
Projects adhering to K-Rera’s norms are a safe bet for customers. While registering a project with K-Rera, the promoter has to upload all details of the project on w ww.rera.kerala.gov.in They include audited balance sheet of the promoter, track record, records of land ownership, sanctioned plans and NOCs from the authorities concerned. This facility will allow customers to make informed choices. The quarterly updates by the promoters help customers in continuous monitoring.
Estate (Regulation and Development) Act 2016. It should be a real estate development with a land area of more than 500 sq m; plot development projects which require development permit/layout approval under Kerala Panchayat Building Rules, 2019/ Kerala Municipality
Building Rules, 2019; development of more than 8 numbers of flats, shops, office space, godowns etc which are intended to be transferred to another person(s) on leasehold or freehold basis. Projects which received occupancy certificates before May 1, 2017, will not come under the jurisdiction of the authority. (To read full – Click Here)
- K-RERA could boost realty sector, says Minister
Minister for Local Self-Governments M.V. Govindan has said that the State’s real estate sector may see a growth momentum thanks to the trust and transparency instilled by the Kerala Real Estate Regulatory Authority (K-RERA).
He was addressing a function here on Thursday to release ‘Building Trust’, a booklet on real estate projects and The Real Estate (Regulation and Development) Act, 2016, published by The Hindu and K-RERA.
“The government has received positive feedback from the public on the functioning of K- RERA. Till the Act came into force, there were complaints about malpractices and lack of professionalism,” he said. He stated that RERA benefitted the stakeholders involved by ensuring financial discipline, and reducing project delays and property fraud.
P. H. Kurian, chairman, K-RERA said there had been a positive response from builders, buyers, and agents to RERA. “K-RERA has an effective complaint redressal system. We have generally disposed of cases within six months. We have received complaints about 30 to 40 projects that have been delayed. After hearing both parties, we have arrived at a mutually acceptable revised schedule for the completion of work. The projects are being closely monitored,” he added. (To read full – Click Here)
- RERA Act | Next Central Advisory Council meeting on April 12
The primary role of the CAC is that of an advisory body which is tasked with the function of finding more effective means to ensure the efficient implementation of the RERA.
The Central Advisory Council (CAC), set up by the government for effective implementation of the real estate law in the country, will hold its next meeting on April 12, 2022, the ministry of housing and urban affairs tweeted. The first two meetings of the CAC were held on May 14, 2018 and April 29, 2020.
The primary role of the CAC is that of an advisory body which is tasked with the function of finding more effective means to ensure the efficient implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA).
In a letter to Housing and Urban Affairs Minister Hardeep Puri sent earlier this month, homebuyers had demanded that the government convene a meeting of the Central Advisory Council (CAC) soon under the Real Estate (Regulation and Development) Act, 2016 for timely, effective and coordinated implementation of the legislation.
To represent homebuyers on this council, the government has inducted president of Forum for People’s Collective Efforts and Federation of Apartment Owners’ Association’s chairman. The council also has a representative of real estate brokers and construction workers.
RERA came into effect on May 1, 2017, and Maharashtra was the first state to implement it by setting up MahaRera. Midwifed by two governments – UPA II and the NDA II – between 2009 and 2016, the legislation was necessitated by the growing misery of tens of thousands of harried homebuyers. (To read full – Click Here)
- Telangana: Realty booms, but RERA let down homebuyers
At a time when Telangana’s real estate market is booming, experts say there is a need to protect homebuyers from erring builders and agents. However, with a defunct Real Estate Regulatory Authority (T-RERA), things have been difficult.
Set up in 2017, in line with the RERA Act of 2016 to protect the interests of customers, the body continues to be dysfunctional five years later – the only major state apart from West Bengal to remain non-compliant — with no permanent authority, tribunal, dedicated chairman or even regular members.
Members of the Central Advisory Council (CAC), RERA explain how this renders T- RERA meaningless, with no powers. “The RERA Act categorically directs state governments to appoint an authority within a period of one year from the date this Act came into force. Given that period has lapsed, even if a homebuyer now approaches T-RERA with a complaint against a builder/agent, the latter can challenge it stating the authority is invalid,” said Abhay Upadhyay, CAC member, based in Kolkata.
(To read full – Click Here)
- Development, RERA authorities must check construction quality from start of realty project: FPCE
The partial collapse of a tower at Chintels Paradiso housing project in Gurugram, Haryana has exposed serious lapses in the working of both development authorities and real estate regulators in the state under the realty law RERA, according to Forum For People’s Collective Efforts (FPCE).
FPCE, an apex body for home buyers, has demanded that development authorities and regulators under RERA should monitor the construction quality from the beginning of a project to fulfil their responsibilities of protecting the interest of home buyers. Real estate
developers are definitely to be blamed for poor construction quality, but the onus also falls on these authorities, he added.
“Home buyers spend their hard earned savings to buy house for life but in this case the collapse happened within four years of possession. This has exposed the serious lapse on the working of both the development authorities and also the RERA authorities,” FPCE President Abhay Upadhyay told PTI on Tuesday.
“Issue of Occupation Certificate (OC) is now merely a formality rather than actual physical inspection, which is mostly obtained through illegal means by builders. Sadly, the RERA authorities merely rubber stamp such certificates which certainly does not absolve them from their prime responsibility to protect the interest of home buyers,” he alleged.
RERA CASE LAWS
- Examine if RERA rules subserve interest of home buyers: SC to Centre
The Supreme Court directed the Centre to examine whether the rules framed by various states under RERA are in conformity and subserve the interest of home buyers.
The Supreme Court Monday directed the Centre to examine whether the rules framed by various states under Real Estate Regulatory Authority (RERA) are in conformity and subserve the interest of home buyers.
A bench of Justices D Y Chandrachud and Surya Kant gave three months to the Centre to examine if there are any deviations in the rules framed by the states to the rules framed by the Centre in 2016 and to place the report by first week of May, 2022.
The bench appointed advocate Devashish Bharuka as amicus curiae in the plea by advocate Ashwini Upadhyay seeking implementation of builder-buyer agreement to safeguard the interest of home buyers and requested him to assist the Union Ministry of Housing and Urban Affairs to examine the rules framed by the states.
The bench agreed that there may be some local conditions which need to be taken care of by the states but most of the rules should be in compliance with the Centre’s draft rules of 2016.
The bench asked Bhati if the Centre has examined whether the rules which have been framed by the states are in conformity with the rules the Centre has framed. Bhati said that they have compared the rules framed by major States where construction activity is more and they have done in the case of Maharashtra and Haryana. She said that the Union of India will do that exercise of examining all the State rules and apprise the court about the same.
On October 4 last year, the top court had said it was important for the country to have a model builder-buyer agreement in the real estate sector for consumer protection because developers try to put numerous clauses in it, which common people may not be aware of. The PIL has sought direction to the Centre to frame model pacts for builders and agent buyers to protect customers and bring transparency in the realty sector in line with the RERA Act, 2016. (To read full – Click Here)
- ‘SC: Interest of homebuyers gets priority over banks’
Putting the interest of homebuyers above that of banks when a real estate company defaults in repaying bank loans and handing over possession, the Supreme Court held that in case of conflict between the Real Estate (Regulation and Development) Act and recovery proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, the former will prevail.
The ruling will provide relief to millions of homebuyers awaiting delivery. The government had amended the Insolvency & Bankruptcy Code making homebuyers part of the committee of creditors deciding the fate of the company but they had not been given precedence in payment of dues in case of liquidation.
A bench of Justices MR Shah and BV Nagarathna dismissed an appeal by Union Bank Of India against a Rajasthan HC order which said complaints against banks can be filed before the Real Estate Regulatory Authority (Rera) if they have taken possession as a secured creditor, following default by the promoter.
The HC held that complaints against banks can be filed before Rera if lenders took possession of a project as a secured creditor, following a default by the promoter in repaying loans.
“The moment the bank takes recourse to any of the measures under sub-section (4) of section 13, it triggers statutory assignment of right of the borrower in the secured creditor. Till this stage arises the bank or financial institutions in whose favour secured interest may have been created may not be…amenable to the jurisdiction of Rera. However the moment the bank or the financial institution takes recourse to any of the measures available in the section 13(4) of the SARFAESI Act, Rera would have jurisdiction to entertain the complaint filed by an aggrieved person,” the HC had said.
Upholding the verdict of the HC, the SC said it was in “complete agreement” and dismissed the appeal of the bank. The bench, however, clarified the HC ruling would only be applicable to cases where the proceedings in Rera are initiated by homebuyers to protect their interest. The HC had passed the verdict while deciding a petition filed by the Union Bank of India against the order passed by Rajasthan Rera wherein while cancelling the bank auction, Rera directed the bank to hand over the possession of the semi-constructed residential project to Rera. (To read full – Click Here)
- Why stuck home buyers should know about Haryana RERA’s order on assured return schemes
Until recently, customers who had invested in assured return schemes of various developers were left rather confused with respect to enforceability of these schemes, especially in light of the SEBI restrictions and orders from the Real Estate Regulatory Authorities (RERA) in Maharashtra & Haryana. As per Maharashtra RERA and Haryana RERA, it had no jurisdiction over assured return schemes offered by developers.
Also, the precedents suggested that only the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC) or civil courts would entertain complaints for adjudication on assured return schemes. But, the recent decision of the Haryana RERA in Madhushree Khaitan vs Vatika Limited on November 10, 2021 (Madhushree Khaitan Order), has indicated/stated that RERA shall have the power to adjudicate on such schemes (at least for agreements prior to 2016), although it is yet to be seen if RERA in other States embrace this view and also extend it to assured return schemes post 2016.
In the Madhushree Khaitan Order, the Haryana RERA established that developers cannot wriggle out of their contractual obligations under an agreement executed prior to the Real Estate (Regulation and Development) Act, 2016 (RERA 2016) coming into force simply because: (i) the original agreement to sell was not entered in a format prescribed for an ‘agreement to sell’ under RERA 2016 (or rewritten as per prescribed format) or (ii) due to the applicability of the provisions of the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act).
The Haryana RERA held that money taken by the developer as payments in advance, against allotment of immovable property cannot be considered as ‘deposits’ for the purpose of the BUDS Act. This view was taken due to the following exemption from the definition of deposit: “Advance received in connection with consideration of an immovable property under an agreement or arrangement subject to the condition that such advance is adjusted against such immovable property as specified in terms of the agreement or arrangement”.
The legality of the assured return schemes was first put to test in the Viswas Real Estates and Infrastructure India Limited case (VREIIL). In this case, following a complaint, Securities and Exchange Board of India (SEBI) deemed a scheme of guaranteed assured returns offered by VREIIL to be a Collective Investment Scheme. This type of scheme requires registration with SEBI under the SEBI (Collective Investment Schemes) Regulations, 1999 (CIS Regulations).
RERA in Maharashtra and Haryana have adjudicated matters relating to assured return schemes. Until recently, the entire catena of judgments passed by RERA have consistently declared that RERA has no jurisdiction over assured return schemes.
The Maharashtra RERA has even held that where a complainant has invested money with the sole intention of gaining profits out of a project, then the complainant is in the position of co- promoter and cannot be treated as an ‘allottee’. Similar views were traditionally adopted by the Haryana RERA as well in their previous judgements. Assured return schemes are generally favoured by developers because such schemes give them access to money at interest rates lower than ordinary loans from scheduled banks. (To read full click here)
Compliances under RERA
Real Estate (Regulatory and Development) Act, 2016 is an Act of Parliament of India which seeks to protect homebuyers as well as help to boost investments in the real estate sector.
RERA registration is just a start of RERA compliances of various provision of RERA regulations. It gives complete details of the project to RERA authority and public at large which would try to ensure that all compliances are met.
- Quarterly Progress Report (QPR)
- There is no need to pay any fees for the updating of QPR (Quarterly progress report) of First Quarter of Year 2019,
- Fees Rs.10,000/- per Quarter; need to deposit INR 10,000/- per Quarter for updating the QPR, if the updating is pending more than equal to two.
- The Developer need to update the details of the registration granted by the UP RERA for the prospective project;
- Construction of each building with photographs proof;
- Construction of each floor with photographs proof;
- Internal infrastructure and common areas’s construction with photographs proof.
Thus, it is always advisable for all the Developers/builders to keep their projects updated and complied, so that there is always transparency in the whole tenure of the project.
Our State RERA Corner:
UP – RERA
- UP RERA penalises Ansal Housing, ATS Realty, 7 others of over Rs 1.40 crore for non-compliance
The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has imposed a penalty of more than Rs 1.40 crore on nine promoters, including Ansal Housing and ATS Realty, for non- compliance with its orders.
In its 84th on 11th February 2022, UP RERA had reviewed the status of compliance of its orders by the promoters. The authority had noted that some of the promoters have indulged in non-compliance of its orders besides the Authority granting them sufficient time for the same, it said in a statement.
The authority said that it is making constant efforts to ensure the enforcement of orders and provide speedy justice to the agreed allottees. “The action of penalty against the guilty promoters is an important step towards compelling them to comply with the orders of the Authority,” It added in its statement.
The Authority said that it decided to impose an appropriate penalty against the promoters to ensure compliance with its orders and protect the interests of the home buyers.
- Noida: Action against three developers for failing to pay dues
The Gautam Budh Nagar administration has taken action against three developers — Wave Group, Supertech Limited and Future World — for failing to comply with its orders pertaining to financial dues, officials said.
The action comes after the developers failed to honour the recovery notices issued by the administration. The administration had started the process to recover the money following the orders from the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera). Some homebuyers had approached the real estate regulator for refund after the developers failed to deliver the projects as per the deadline.
According to the officials, the administration first issues a notice to the defaulter giving him time to file a reply. If the builder fails to submit a satisfactory reply, then the administration begins the process of attaching the property, accounts or other assets to recover the dues from the defaulting developers.
Wave Group’s Wave Mega City Centre (WMCC) Pvt Ltd has dues of around ₹70 crore, Supertech Limited of around ₹1 crore and Future World of around ₹2 crore to be paid to the UP-Rera.
A spokesperson of Wave Group said, “The matter concerning the WMCC is sub-judice. The district administration officials visited the office of Wave Infratech, which has no relation with WMCC. We are in continuous discussion with the administration officials and expect to resolve the matter amicably.” To read more Click Source)
RERA – Corporate Dose
|1||Haryana forms panel to examine structural strength of buildings Kaushal made the statement days after the sequential collapse of drawing-room roofs of a flat from the sixth floor to the first floor in a highrise in the city, in which two women residents of the building were killed and a senior central government officer was critically injured.||Click Here|
|2||CREDAI raises stamp duty, guidance value issues with Karnataka CM: The Confederation of Real Estate Developers Associations of India (CREDAI) have raised the issue pertaining to stamp duty on registrable||Click Here|
|documents, guidance value and excessive statutory charges with Chief Minister Basvaraj Bommai. They also wanted that the time period for reduction of 10% in the Guidance Value of the property be risen to a further period of one year, from April 01, 2022 to March 31, 2023.|
|3||‘Builders to appoint nodal officers for complaints’ In the wake of the cave-in at Chintels Paradiso, the chief of Haryana Real Estate Regulatory Authority (H-Rera) KK Khandelwal said on Saturday all real estate developers have been directed to appoint nodal officers to resolve construction complaints that homebuyers have.||Click Here|
|4||Haryana government to come up with a policy for resolution of stressed asset : Haryana Chief Minister Manohar Lal Khattar said that RERA, Panchkula will soon come up with a policy for resolution of stressed assets within the framework of the RERA Act and the Urban Areas Act, 1975. A dedicated cell comprising of legal professionals and real estate consultants supported by Insolvency Resolution Agency/ professionals shall be created in the Directorate to keep track of all existing NCLT matters in all NCLT benches and track proceedings on a day-to-day basis.||Click Here|
|5||Calcutta High Court chief justice nominates senior judge for RERA implementation in West Bengal: In an indication that the West Bengal government is moving to implement the Real Estate (Regulation & Development) Act, 2016 in the state, the Chief Justice of the Calcutta High Court has nominated a senior judge to facilitate the constitution of adjudicatory bodies under the central act. The counsel for the state government has informed the Supreme Court about this development while appealing to the top court to not entertain a recent application filed by the Forum for People’s Collective Efforts (FPCE), a pan-India homebuyers’ body that is aiming to push the implementation of RERA in the state.||Click Here|
- Haryana RERA signs MoU with Jupitice Justice Technologies for digitalization of complaint redressal system
Haryana Real Estate Regulatory Authority, Gurugram (HARERA) has entered into a memorandum of understanding (MoU) with Jupitice Justice Technologies Private Limited for complete digitalization of Gurugram RERA’s complaint redressal system. The MoU was signed in the presence of KK Khandelwal, Chairman, Gurugram RERA and Raman Aggarwal, Founder & CEO, Jupitice Justice Technologies.
Under the terms of the MoU, Jupitice will design and build an exclusive digital RERA Court along with other technological expertise to HARERA to facilitate the dispute resolution.
On the other hand, HARERA will promote and use this Digital RERA Court to conduct end- to-end proceedings etc. for easy and effective dispute resolution for the disputants and other stakeholders involved in the process.
With this platform, the user will be provided with end-to-end abilities to plead and conduct entire proceedings under the Quasi-Judicial Mechanism, from filing of disputes to decision making, all on a single platform.
Under this partnership, Haryana will become a pioneer to have the first-of-its-kind digital RERA Court designed and developed to enable all its stakeholders to execute and perform end-to-end dispute resolution mechanism online from the comfort of their home or office.
(To read more: Click Here)
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