Real Estate Regulatory Authority - RERA In Action: Penalties Hiked, Notices Slapped..!
Homebuyers have restored their faith, to a certain extent, in
the Indian real estate sector only after the Real Estate Regulatory Authority
(RERA) in India framed stringent operational framework and a code of conduct by
which every developer will need to abide. Recently, state authorities have
passed verdicts that have encouraged homebuyers to pursue their
property-purchase dreams.
Let us see what is
happening across states:
Gurgaon
authorities slap notices, delay website..!
In Gurgaon, of the
600 projects that applied for registration till October, 2017 only
345 have been registered while notices have been slapped on 140 others for
violations. These were cases where the developers had either not applied for
registration under the RERA or developers had sent across incomplete details or
in a wrong format.
Also, the Haryana
chief minister failed to meet his promise on making live the online portal of
the state RERA.
The 2017 October-end deadline has been now been pushed by
another month. As of now, senior government officials are in the process of
interviewing applicants for the various posts in the RERA.
Goa
relaxes cut-offs..!
The Goa government
has relaxed the cut offs for registration with the RERA in the absence of an online
portal and delay in notifying the rules. Applications for registration would be
accepted from developers till December, 31, 2017.
Late
registration penalty hiked
According to an order
by the Maharashtra Real Estate Regulatory Authority (MahaRERA), developers who
fail to register their projects with the authority will have to pay a fine of
Rs .1 lakh or amount equivalent to the registration fee of the project. Those
who submit applications after September 1 and before September
30 will need to pay a penalty of Rs. 2 lakh per application or an amount
equivalent to the registration fee of the project, whichever is more, capped at
Rs. 10 lakh.
Those applications
that were received after the initial deadline of July 31, that is
on August 1 and 2, were fined Rs. 50,000. This shows that for defaulting
developers, the going is getting tougher. Find the notification here.
Also, in a first, the
Maharashtra authority directed a developer to return over Rs 26 lakh to a buyer
after it failed to hand over the unit even though the possession was slated in
2012-13. The complainant, a home buyer from Khar had filed his grievance and
the developer was directed to refund Rs. 26.15 lakh to the home buyer. In
another case, a fine of Rs. 1.20 lakh was slapped on a broker who had
advertised unregistered projects for sale. The law forbids any seller or broker
to advertise any project for sale that is yet to be registered.
Also, Maharashtra,
which was credited with its timely implementation of the RERA in a transparent
way, may not be doing as well as you may have thought. While over 13,000
ongoing projects were brought under the RERA, only 1,241 new projects were
registered so far across the state. Delay in projects by over five years has
been reported in 10 per cent of these projects.
Rajasthan
goes the hard way..
After the launch of
the RERA website in the state in June, developers were asked to register their
projects within 90 days. Obviously, there have been defaults, and the
Rajasthan RERA has decided to go the hard way.
The authority has announced that a penalty of two per cent of
the project cost or 10 times the registration fee must be deposited by
developers in case their projects are not registered. After 2017 September
30, the penalty would be raised to 10% of the project cost and registration
fee.
Karnataka
sends notices, BDA BBMP now under KRERA..!
Sooner than later,
developers will need to understand that there’s no taking the law lightly.
Karnataka RERA Chairman Kapil Mohan was quoted by media as saying: “We are
getting harsh on property developers who are yet to register on our portal.
Nearly 100 of the 130 properties we have identified as defaulting ones
presently are in Bengaluru.”
In Karnataka, the
Bangalore Development Authority, the Bruhat Bengaluru Mahanagara Palike (BBMP),
the Bangalore Metropolitan Regional Development Authority and the Karnataka
Housing Board will now have to register their projects under the Karnataka Real
Estate Regulation Authority (KRERA).
Reiterating
rules…!
Here is a look
·
In a recent case, where developers in Maharashtra opposed
provisions of the RERA Act calling it retroactive, the amicus curiae in the
Bombay High Court pointed out that in the event of promoter not completing an
ongoing project, the Act gave the authority the powers to appoint a contractor
and ask the promoter to pay the contractor to complete the project.
·
Addressing a seminar of chartered accountants and builders
organised by local chapter of The Institute of Chartered Accountants of India
(ICAI) in Indore, RERA Chairman Anthony De Sa said that property buyers can
approach the police against errant developers because RERA’s aim to promote the
sector and not punish the people.
Recent verdict..!
Three years after
cancellation of their unit in Nirmal Lifestyle Kalyan Pvt, two homebuyers have
been refunded their money, thanks to the RERA.
These homebuyers had to cancel their unit due to financial
constraints but the developer had initially refunded only part of the payment.
Three years down the line, the entire refund had been directed by the RERA.
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