Tuesday, 8 August 2017

MahaRERA to fine 480 housing projects Rs 50,000 each for deadline breach

Consumer forums and registered builders across the state had been demanding that the MahaRERA issue a circular or direction to stop registration of projects without any penalty after the deadline


The Maharashtra Real EstateRegulatory Authority (MahaRERA) on Wednesday decided to slap a penalty of Rs 50,000 each on the 480 ongoing housing projects that registered with it after the July 31 deadline.

"We had allowed the developers to register their projects, but a decision on the penalty was pending. At a meeting on Wednesday, we decided to impose penalty on the projects registered after the deadline," said MahaRERA secretary Vasant Prabhu.

A decision on the penalty to be slapped on projects registered after August 3 will be taken later, he added.

Consumer forums and registered builders across the state had been demanding that the MahaRERA issue a circular or direction to stop registration of projects without any penalty after the deadline.

“We will convene another meeting to finalize the penalty to be slapped on projects registered on and after August 3,” Prabhu told TOI, adding that there would not be any deadline extension “as it is against the law”.

Section 3 of the Real Estate Regulatory Act (RERA) states that no extension for project registration will be allowed and developers registering their projects will be penalized under Section 59 (non-registration) of the law. The quantum of penalty can be 10% of the project cost and even imprisonment, if the builder concerned does not comply with the order.

Nearly 11,000 projects have been registered with MahaRERA as the deadline came to an end on July 31. Officials said developers still not under the RERA ambit can upload their documents on the website. “But each case will be examined for penalty,” an official said.

The MahaRERA website saw registration of 10,852 ongoing housing projects as the official deadline came to an end. Pune district topped the number of registrations with 2,908 (26.8%) applications.

In the meantime, a circular issued by the Union government stated that Maha-RERA has been entrusted with the additional responsibility of Dadar and Nagar Haveli and Diu and Daman territories in the absence of RERA authority in these union territories.



Saturday, 5 August 2017

Goa extends RERA deadline till October on delay in notifying rules

The central Real Estate (Regulation and Development) Act (RERA) came into effect on May 1, 2017, exactly a year after it was passed by Parliament


PANAJI: A delay in notifying the Real Estate (Regulation and Development) Act (RERA) rules for Goa has once again delivered a setback to consumers who were waiting for RERA to be enforced before buying homes. The BJPgovernment on Sunday extended the deadline to October for ongoing projects to register with RERA, even though the central government and other states have clearly refused to grant an extension.

The central Real Estate (Regulation and Development) Act (RERA) came into effect on May 1, 2017, exactly a year after it was passed by Parliament. As per the Act, developers, projects and agents had till July 31 to mandatorily register their projects with the Real Estate Regulatory Authority.

Any unregistered project would be deemed to be unauthorized by the regulator, but since the state government has failed to notify the rules and the authority as on date, the ministry of urban development has given Goan builders additional time to register with RERA.

TOI had reported on July 15, that the Goa government was likely to accept the demands from builders and extend the deadline by three months.

“Builders and promoters can submit their applications of new and ongoing projects in the prescribed form which can be downloaded from the website. For ongoing projects, applications for registration will be accepted upto October 31, 2017, without levy of penalty,” designated Real Estate Regulatory Authority Sudhir Mahajan said.

The central law, which was enacted to regulate the real estate sector and secure the interest of consumers, states that no builder can advertise, market or sell a plot, apartment or building without registering the real estate project with the Real Estate Regulatory Authority.

A builder has to pay Rs 10 per sqm of area to the regulator as registration fees for the project.

Goa is one of the few states in the country which has failed to notify the RERA rules. Officials said, the RERA rules for Goa have been framed along the lines of the regulations notified by Maharashtra, which has partially diluted the penalties for non-compliance by builders.

“Notification of the rules will take time. We will try to do it at the earliest,” Mahajan said to TOI when asked if the rules under RERA will be notified in the coming days.

The new regulatory authority was meant to end the uncertainty for home buyers, bring transparency and protect buyers from unscrupulous builders.



Tuesday, 1 August 2017

Builders take Centre to court, say RERA illegal


Earlier builders’ demand to exclude incomplete projects was turned down by the Centre saying the law was enacted to bring relief to crores of home buyers who had been waiting for their flats for years



NEW DELHI: A bunch of builders have approached two high courts challenging some of the key provisions in the Real Estate Regulation Act (RERA) including binging all “ongoing” projects under regulation and penalties for failure to register such projects. They have pleaded that these provisions have retrospective effect since the projects were started when there was no such law and hence it’s illegal.

Earlier builders’ demand to exclude incomplete projects was turned down by the Centre saying the law was enacted to bring relief to crores of home buyers who had been waiting for their flats for years, even after making full payment. According to the law, the mandatory registration of incomplete and new projects with the regulator will have to be done by August 1, else the builders face the risk of paying penalties.

The builders have been opposing this provision amid reports that most of them are cash strapped. Moreover, the law brings transparency and accountability and property developers have to give fresh timelines for completion of projects. The timelines will have to be adhered to.

While Builders and Developers Welfare Association has filed a PIL in Madhya Pradesh High Court, Swapnil Developers has challenged provisions of RERA in the Nagpur bench of Bombay High Court. These cases are coming up for hearing in the next one week.

Sources in the housing and urban affairs ministry said RERA is not a law with retrospective effect since it covers all projects, which have not got completion certificate by May 1, 2017. Secondly, the penal provisions come to effect only after the law came to existence.

Till now 22 states and seven Union Territories have got proper or interim regulators and real estate projects can be registered with them.

Builders have challenged the Centre’s right to enact the law relating to land, which is a state subject, and how submitting details of projects to the regulator would amount to infringement of right to privacy.

“The law came into force in March 2016 and there was enough time to complete the ongoing projects. The law says the builders will have to give fresh timeline while registering all projects including the ongoing ones,” a government official said.

He added that the law has been made under the relevant constitutional provisions of the Concurrent List and the ministry had even obtained opinion of the law ministry in June 2012. “The RERA does not provide for matters relating to ‘land’ or ‘local authority’. It aims to regulate the contractual obligations between the builders and buyers. It focuses on resolving disputes in the sector,” the official added.