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RERA is constitutional, valid and legal, says Bombay High Court

There’s good news for home buyers as the Bombay High Court on Wednesday upheld the constitutional validity of the Real Estate (Regulation and Development) act, 2016 (RERA)and the authority formed under it.A division bench of Justice Naresh Patil and Justice Rajesh Ketkar, in their 330+ page judgement, upheld various provisions of the act and the Constitution of the Maharashtra RERA authority. It said, “RERA is not a law relating to only regulating concerns of the promoters but it’s object is to develop the real estate sector, particularly the incomplete projects, across the country. The problems are enormous and it’s time to take a step forward to fulfill the dream of the Father of the Nation — To wipe out tears from every eye.”The court passed the order while deciding on a bunch of petitions filed by developers and plot owners challenging the validity of several sections of the RERA act. It said, “Having a careful scrutiny of the relevant provisions, we have harmoniously construed the provisions, and hold them to be constitutional, valid and legal.”However, the court partially struck down section 46 (1) (b), which relates to qualification of appointment of judicial members to the authority. The court has directed that the two member bench of the tribunal should always consist a judicial member and majority of the members shall always be judicial members, instead of bureaucrats, as is the formation now.Across, a few states, several builders moved high courts to question the Act, especially provisions saying it applies to projects not completed by May 31, 2017 and its “draconian” penal provisions with possible imprisonment for breaches.Among others, DB Realty Group, Real Gem Buildtech, MIG (Bandra) Realtors and Neelkamal Realtors had moved the high court.RERA came into effect on May 1, a year after both houses of the parliament passed it. Supreme Court had in September, on a Union government application, sought to club all petitions filed across the country. It also further urged Bombay High Court to decide first on the petitions, within a period of two months.As per the Act, developers, projects and agents had time till July 31 to compulsorily register their projects with the Authority. Any unregistered project would be deemed to be unauthorised by the regulator.Under RERA, each state and union territory will have its own Regulatory Authority (RA) which will frame rules and regulations as per the Act.THE JUDGEMENTDivision bench of Justices Patil and Ketkar upheld various provisions of the Act Judgement said: RERA is not a law relating to only regulating concerns of the promoters, its object is to develop the real estate sector It added: The problems are enormous and it’s time to fulfill Gandhi’s dream — Wipe out tears from every eye.
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Yogi Adityanath

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Won’t entertain pre-RERA plaint

<!– /11440465/Dna_Article_Middle_300x250_BTF –>If a homebuyer has taken possession of a flat before May 2017, when the Real Estate Regulatory Act (RERA) came into force, then the buyer cannot seek compensation from the developer for delayed possession. The Maharashtra Real Estate Regulatory Authority (MahaRERA) dismissed a complaint on the same grounds, wherein the home buyer was promised a home in 2013 but was given possession only in March 2015.The complainant, Mahadeo Nalawade, filed a complaint under Section 18 of Real Estate (Regulation and Development) Act, 2016 for getting interest and compensation on the investment made by him for purchasing a flat in developer APL Yashomangal’s Alfa Greenfields Project in Pune. The complainant contended that he purchased the flat from the developer who had agreed to deliver its possession by December 2013. The developer failed to deliver the possession as agreed, therefore Nalawade claimed interest/compensation on his investment.The developer denied Nalawade’s allegation that he failed to give the possession of his flat. According to the developer, Nalawde has been possessing the flat from November 2015 and the fit out possession was given in March 2015 itself.Nalawade admitted these facts. However, his submission was that he wants interest/compensation for the delayed period from April 2014 to March 2015 when he received the fit out possession.While dismissing the complaint, BD Kapadnis, member, MahaRERA said in his order, “In this case, the fit out possession has been given in March 2015 and the complainant has been residing in the flat from November 2015.Therefore, the cause of action to claim compensation for the delayed possession did not survive on May 1, 2017 when the Act came into force. Since the possession is given, Section 18 of RERA will have no role to play. In this situation, I find that the complaint is not maintainable under Section 18 of the Act and it will have to be dismissed.”

Real-estate transactions fall, fewer registered documents this year

<!– /11440465/Dna_Article_Middle_300x250_BTF –>The real-estate market in the state may be showing a slump as is evidenced by falling registrations of property transactions.Senior officials said that the department of registration and stamps had registered lesser documents this year compared to the previous fiscal. “By October-end, the total number of documents registered was around 12,54,075 which is marginally lower than the 12,88,527 registered in the same period last year,” an official added.”Real-estate transactions have fallen. SRA and redevelopment projects in Mumbai were held up in areas like the Kurla taluka after the court’s ban on new constructions in Mumbai due to the failure in solving the problem of the city’s dumping grounds. This led to our revenue being hit as we get around Rs 20 to 30 crore from one such project. A major chunk of our revenues come from conveyance deeds of development projects,” he explained.In 2016-17, a total of 20.46 lakh registrations were logged in, which was lower than the 23 lakh in the previous fiscal. This was largely due to the demonetization of high-value currency notes on November 8, 2016.”This year, conveyance deeds account for 54.7% of volumes among the total documents registered, followed by mortgages (12.4%), leave and license (10.7%), power of attorney (4.5%) and leave and license (4.3%),” the official said.Official noted that more sales and purchases of flats had been logged in before June, when the Real Estate (Regulation and Development) Act, 2016 (RERA) came into force. “This led to additional revenue of around Rs 1,000 crore in a month. Hence, the fall in real estate transactions cannot be interpreted as a slump in the real-estate sector,” he added.However, the department, which is the second highest revenue grosser for the Maharashtra government after state goods and services tax (SGST) has something to cheer about. A hike in the ready reckoner rates has ensured a rise in the revenues through stamp duty and registration fees, with Rs 13,711 crore being collected by October-end, compared to the lower Rs 11,854 for the same period last year.

MahaRERA dismisses aggrieved buyer’s plaint

<!– /11440465/Dna_Article_Middle_300x250_BTF –>In a recent order, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has dismissed a complaint where the buyer, after taking possession of the flat, alleged that the developer had not provided amenities as per the agreement. If a homebuyer has already taken possession of a flat and the concerned builder has failed to provide amenities as mentioned in the agreement, the buyer cannot hold the builder responsible, as per the rules. The complainant, Harish Bhulchandani, registered a complaint with MahaRERA against Satra Properties for not providing all the amenities as per the agreement of his flat in Borivli West. A registered agreement dated December 22, 2014, for sale of the apartment was executed between the wife of the complainant, Rachana Harish Bulchandani, and the developer. Bulchandani stated that he took possession of the flat in April 2017, and argued that the developer had not provided the amenities that were decided in the agreement. He then urged the authority to direct the developer to provide the said facilities. The developer, however, claimed that the buyer did not complain while taking possession of the flat, and had not raised any objection then. He further argued that the complainant had taken possession of the flat prior to RERA coming into force, and hence, the present case does not fall under the jurisdiction of MahaRERA. MahaRERA agreed to the developer’s arguments and dismissed the complaint.Dr Sanjay Chaturvedi, a RERA expert and executive editor, Accommodation Times, said that the dismissal of the complaint is not in favour of homebuyers. “Providing amenities is like providing services to the homebuyers, and this should be protected by MahaRERA. Natural justice is not done here,” he said.About MahaRERAMahaRERA came into force on May 1, 2017 and since then More tha. 13,000 developers have registered their projects with the authority. Every developer who has a project ongoing and has created a third party needs to register their project.

City sees 300% rise in new affordable housing: Report

<!– /11440465/Dna_Article_Middle_300x250_BTF –>The affordable housing segment in Mumbai saw a rise of 300 per cent in new launches this year. Compared to 2,454 units of affordable housing launches last year between January to September, the number of affordable units (measuring 30 square metres) launched has crossed the 10,000 mark in the same period this year. This has been revealed in a report of Cushman & Wakefield, an international property consultant.The report covers the top eight cities of India, and according to the report, the affordable housing sector has recorded a surge of 27 per cent in new units launched (year-on-year basis).The report attributed this surge to announcements by the government to incentivise affordable housing through industry status, and says many developers have shown an interest in developing such projects.However, according to the report, overall residential unit launches recorded a decline of 33 per cent, and was at approximately 60,000 units in the first three quarters of 2017 (January to September).The report further claimed that all cities, except for Mumbai, saw a decline in new launches, mostly due to the introduction of Real Estate Regulatory Act (RERA) and GST implementation.The affordable housing segment demonstrated the strongest growth amongst all new launches. It grew at a record of 27 per cent in the new units launched in eight cities.More than 26,000 new units have been launched in 2017 so far. Of the total new launches in affordable units, 40 per cent were in Mumbai (10,500 units), followed by Kolkata and Pune. All other categories have seen a decline with high-end (66%) and luxury (84%) segments witnessing a significant drop in new launches.Mumbai saw a 300 per cent increase in launches of affordable units compared to that of the same period last year.Anshul Jain, managing director India, Cushman & Wakefield, said, “Affordable housing is an attractive proposition both for developers and consumers as demand is huge and largely unmet. The high focus of central government has resulted in availability of more funding options for developers such as FDI and debt financing from national financial institutions at highly competitive rates. But there are challenges for affordable housing projects in Tier 1 cities, where land costs and availability within established locations is very difficult.”RECORD SURGECompared to 2,454 units launched between Jan-Sept last year, number of affordable units (measuring 30 sq m) launched has crossed the 10,000 mark in the same period this year

Union government gets tough with states on RERA implementation

<!– /11440465/Dna_Article_Middle_300x250_BTF –>In a major boost to home buyers, union urban development and housing ministry has asked states to plug the loopholes in Real Estate Regulation ACT (RERA). A parliament committee has pointed out dilution of the RERA by the states in order to provide benefit to builders.The parliamentary committee was asked to study implementation of rules for Real Estate Regulation ACT (RERA). In its report submitted in the Lok Sabha, the parliamentary panel has said that the most states have tweaked rules, which are beneficial to the builders but detrimental to the consumers.The act was enacted to protect consumers but the onus to implement it was on the states. However, the parliamentary committee found that going against the spirit of the law several states including Rajasthan made changes suitable for builders. It said that because of this consumers are not getting the benefits they are entitles under RERA.But, the union government has made it clear to the states that for effective implementation of the law while keeping in mind consumers’ interest, they will either have to change the rules not in accordance with the central act or frame new laws. Following the central ministry’s directives, the states will have to close the gap deliberately left open for benefit of builders.Rajasthan where the RERA came into effect on May 1, this year is, among the states that circumvented the new act by leaving ambiguity in the rules. The state government while framing the rules defined them in arbitrary way.As per the central act, ongoing projects have to be registered under RERA. It considers ongoing projects that have not taken completion certificate till the date act came into force. However, in Rajasthan has added several provisions, which are not in tune with the act.To put an end to this the parliamentary committee has made several recommendations. It said that as per article 254 (2) of the constitution, the central government has right to enact acts like RERA. Such law would override acts and rules implemented by the states. Among the gross violation of RERA by the states, the report mentioned definition of ongoing projects and penalty on the builders for poor quality of construction. It has recommended that the central government must ask states to either change their rules or make fresh rules. Also, the committee should be informed about the action taken on its recommendation.What did Rajasthan do:-Projects in which common facilities handed over to residents’ association or authorised agency have been included in ongoing projects.Those projects which have sold 60% plots or housing units or gave their possession.The projects whose completion certificate have been issued by chartered engineer.Even the projects who have applied for completion certificate to the competent authority have been consideredongoing projects.If 50% development fee has been deposited.If the competent authority has begun regularization of the projects.

RERA breathes new life in dormant JDA schemes

<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Real Estate Regulatory Act (RERA) has given a new spell of life to residential and development schemes that had lost interest of development authorities over span of time. The officers at the Jaipur Development Authority (JDA) are raking up files in search of the schemes that continue to occupy valuable land and have zero allotment. “We are currently preparing a list of the schemes that for any reason have not seen even a single allotment, such schemes need to be registered under RERA,” Jaipur development commissioner Vaibhav Galariya told DNA.All schemes under development need to be registered under RERA, even for government bodies. The registration of schemes is not a challenge but it’s the condition to provide a fixed time for development and delivery that has called for a review of the schemes lying in abeyance. The JDA reportedly has so far eight such schemes under its review.“These schemes will require to be updated in accordance with the present rate and demand and accordingly will be registered with RERA,” said the JDC.Among the schemes to be revived under the scheme is also the only Farm House scheme launched by JDA in 2006. Planned at Jamwaramgarh area, the scheme had plots for resorts, swimming pool, yoga and recreation and 25 farm houses. The scheme is now back on track.“It’s an old scheme and had farm houses plots of up to 5000 square metre, the details will now have to be updated and will soon be registered at RERA,” informed a JDA officer.Once listed in RERA, it will be difficult for the development authority to back off from the proposed development dates even if the schemes fail to attract investors. However, the RERA compulsion has definitiely made the authorities review their non-performing assets.

MahaRERA sets Rs1 lakh fine on late applications

<!– /11440465/Dna_Article_Middle_300x250_BTF –>Maharashtra Real Estate Regulatory Authority has decided to levy a fine of Rs 1 lakh or an amount equivalent to the registration fee of the project, whichever is higher, on projects seeking registration after August 2, and till 5 pm on August 16.The last day for registration of ongoing projects was midnight of July 31. A total of 10,852 projects applied for registration with MahaRERA until then.During the two days immediately after the deadline, the regulatory authority received 480 applications and decided to charge them a penalty of Rs 50,000 for registration.However, for entries after August 2, MahaRERA has decided to levy a fine of Rs 1 lakh or the amount equivalent to the registration fee of the project, whichever is higher. The registration fees is minimum of Rs 50,000 and maximum of Rs 10 lakh depending on the area of the project.The decision was taken in a meeting held on Thursday under the chairman Gautam Chaterjee. The Real Estate (Regulation and Development) Act (RERA) empowers the authority to levy a late application fine of up to 10 per cent of the total project cost.The two page ruling also disallows projects that are yet to receive their registration number from marketing, selling, advertising any of their projectManohar Shroff, Vice President, Navi Mumbai unit of CREDAI-MCHI, a recognised body of real estate developers, said, “The authority has levied a reasonable fine. Rs 1 lakh isn’t a huge sum and will encourage builders to register. There’s still a week to go. Developers should use this opportunity and register their projects instead of waiting for the fine to go up further.”…& AnalysisRegistration of ongoing projects is important to enable the authority to act against violations and safeguard the interest of home buyersWhile a heavy fine would have discouraged builders, the penalty being nominal, developers will now come forward to register

Developers may get two more months to register under RERA

<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Gujarat Real Estate Regulatory Authority is likely to extend by two months the deadline for registration of ongoing real estate projects under Real Estate (Regulation and Development) Act (RERA). The earlier deadline for registration was July 31.Neela Munshi, officer on special duty in urban development department of state government, wrote a letter to the RERA secretary on Monday, requesting extension of the deadline by two months for the benefit of ongoing projects. According to sources, the deadline will be extended accordingly very soon.Interim chairman of RERA authority and former chief secretary in state Manjula Subramaniam said that they had received 400 applications from developers and 94 from agents by Monday morning. She said, “We have requested the state government to inform us about their stand. Implementation of RERA in state was already delayed. The recent heavy downpour and flood in state too could have affected developers.”“We have been scrutinising the applications. If more documents are needed, we shall inform the applicants within seven days,” she added.Sources, however, said that by Monday evening, the number of applications by developers had reached 450 and that by real estate agents stood at 100.CREDAI calls for review of RERANational president of CREDAI Jaxay Shah said, “The requirement of RERA that no project be offered for sale without registration would cripple the real estate industry which is already facing downward business cycle. Ongoing projects about to be completed may actually get delayed on account of RERA.”He added, “Authorities responsible for giving approvals to real estate projects must be within the ambit of RERA.”

Realty doyens talk gains from GST, RERA

<!– /11440465/Dna_Article_Middle_300x250_BTF –>Realty players hinted that there are short term pains but long term gains following the introduction of Goods & Services Tax (GST) and the implementation of the Real Estate (Regulation and Development) Act. However, they held a unanimous opinion that with GST and RERA, opportunities will increase manifold, as there will be integration of taxes and transparency will be achieved in the sector, too.Niranjan Hiranandani, Co-founder, Managing Director, Hiranandani Group, said, “As far as GST on real estate is concerned, there are challenges because the land prices are so high that a set off hasn’t yet been given. There are speculations that there will be an inflation in terms of cost of 3.5 or 5.5 per cent, depending on the type of construction and land cost. These challenges that will be dealt by the industry, and as the overall growth improves, I am sure, there will definitely be a rationalisation of these taxes.”Ashutosh Limaye, National Director, JLL, said there will be an effective 12 per cent GST, which is high. “‘Today, most states have service tax and VAT, which is 9 per cent. Therefore, there will be an effective 3 per cent increase. The government is expecting to pass on savings that they will make on material purchases and work contracts to compensate the increase with lower cost of materials and contracts.” However, he said, developers who have signed contracts earlier, will not enjoy the benefits of GST.Neel Raheja, Group President, K Raheja Group, said, India is one of the few countries to implement GST. “‘There will be 12 per cent GST on buildings under construction, but none on furnished ones. For offices and industrial set-ups, there won’t be any construction cost, hence increasing the incremental cost. But there will be 18 per cent GST on land leased by the government.”However, Manoj Paliwal, CFO, Omkar Realtors, said, “Even after accounting the benefits of GST on construction cost, 12 per cent is too high a rate for Mumbai.”As far as the enactment of RERA is concerned, Hiranandani said, most of the states are yet to put regulators in place.Limaye noted that there are hundreds of developers who do not have a proper business model and don’t intend to be long-term players either. “Such developers have no future now, they will have to comply with RERA or else exit the industry. This will benefit real estate,” he said.

Developers rush for OC to avoid RERA

<!– /11440465/Dna_Article_Middle_300x250_BTF –>City developers whose projects are nearing completion have rushed to the Brihanmumbai Municipal Corporation (BMC) to obtain occupancy certificates (OC) so that their projects do not fall under the ambit of new Real Estate Regulatory Authority (RERA) Act that came into effect from May 1, 2017. Since the Act came into effect in May 2017, the BMC has received a total of 147 applications.Over the course of the 2016-17 financial year, the civic body had received a total of 198 applications seeking OC. If builders manage to get an OC for their projects within three months, the projects will fall under the ambit of the Maharashtra Ownership of Flats Act, rather than RERA.As per the Act, all the ongoing projects have to register under RERA if the projects have not obtained the OC. Though the Act had already come into affect on May 1, 2017, developers were allowed three months, ending July 31, to obtain OC for their completed projects.In April, May and June, the BMC received a total of 208 applications seeking OC. Of the total 208 applications, 147 were received after the RERA came into affect. “We have received a total of 146 applications that sought OC since the RERA came into effect,” said an official from the building proposals department of BMC.He added, “After RERA, we have been witnessing more applications from developers whose projects are nearing completion.” Of the total 208 applications received since April 1, 2017, the most applications, 91, were received in June, while in April and May, the civic body received 62 and 55 applications respectively.However, of the total 208 applications the civic body received, 109 applications have been approved while 61 applications were rejected on various grounds. In addition, there are 37 applications currently under process.In addition, the average time for approving or rejecting a proposal has also improved during this fiscal. During 2016-17, the average time for approving a proposal was 7.05 days….& ANALYSISAt a time when builders are in a hurry to get occupation certificates, it is important to make sure that all criteria and norms for external and internal development works are met
Mandatory stipulations like provision of access roads, water supply, sewage and drainage systems among others should not be neglected by the civic body and project details should be thoroughly checked

Mahagun Developers made us move into unfinished building, allege buyers

<!– /11440465/Dna_Article_Middle_300x250_BTF –>Home buyers met Greater Noida Authority CEO Debashish Panda on tuesday. They lodged a complaint against Mahagun developer for delaying the project and forcing them to shift to an incomplete building. The buyers alleged that the developers had done this in order to avoid prosecution under the Real Estate Regulatory Act (RERA). The buyers also demanded that the CEO and his department examine the construction quality of all developers in Greater Noida.In their meeting with Panda, buyers of the Mahagun Mywoods project — developed by Mahagun developer in Greater Noida West— told the CEO that with the intention to evade RERA norms, the builder had applied for part completion of the two towers. The added that the builder was mounting pressure on them to shift into the society.The buyers then demanded the CEO to conduct a physical inspection of the project before issuing a completion certificate to the builder.The home buyers said that the builders, in order to save money, had used an inferior quality of material, putting their lives in danger. They said that in the past many incidents of portions of the roof collapse have been reported in many projects in the area.The buyers also alleged that the builder, without their consent, was changing the layout plan. They stated that the developers had been constructing extra flats and then later applying for extra Floor area ratio (FAR) from the authority. The home buyers said in some towers, the foundation was developed for 14 floors but to make more money the builders had constructed extra floors, making the building risky.Despite repeated attempts, spokespersons from Mahagun developer remained unavailable for comment.Buyers’ plaintsThe builders, in order to save money, had used an inferior quality of materialDevelopers had been constructing extra flats and then later applying for extra floor area ratio

DNA Micro Edit: RERA turns out to be a real test for developers

<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Maharashtra Real Estate Regulatory Authority (MahaRERA) penalised Sai Estate Consultant for misleading the general public. This step shows that the government is serious about the interests of home buyers, who were always taken for granted by builders, brokers, and even government authorities. The action was to send a message that builders better abide by the law or else face the music. As per the Act, builders who construct projects and brokers who sell apartments or plots have to be registered, and if they fail to do so, they won’t be allowed to carry out their business.RERA is a weapon in the hands of the homebuyer, who was defenceless against the mighty builders. Registration by developers is important and good for homebuyers because via this a set of rules has to be followed by the builder. Everything is out in the open from the amenities to the area of the house and builders cannot cheat on it or else they will face action. The accountability aspect along with transparency has gained prominence in this Act. From conveyance to following the rules to the T, if any builder falters in it he is bound to pay a fine as huge as five to 10 per cent of the project cost. Similarly, a particular sum has to be deposited in bank accounts, while carrying out the construction of a building. This will dissuade builders from abandoning projects midway and secure the future of homebuyers. The best thing is that RERA isn’t a toothless authority.

To avoid stringent Act builders get OCs for incomplete projects

<!– /11440465/Dna_Article_Middle_300x250_BTF –>Residents in Noida, Greater Noida, and Gurugram have come forth with complaints that many developers whose buildings are not even ready yet have managed to procure Occupancy Certificates (OC). The residents have urged the authorities concerned to initiate a probe into the alleged scam.”This amounts to playing with lives of thousand of people as the structures are incomplete as per the National Building Code and the authorities have allowed occupancy in such buildings. If the authorities do not pay heed, we will stage a dharna and protest against tainted developers and the authorities,” Amit Gupta, a home buyer in Noida, said.According to complainants, these OCs have been procured to avoid following the guidelines of the stringent Real Estate (Regulation and Development) Act (RERA), 2016, which came into effect all across the country on May 1, 2017.All ‘ongoing’ projects that did not receive the OC before the commencement of the Act will come under its purview. For projects where the OC has already been issued, the developers need not go for registration under the new Act. To avoid the strict RERA rules, several builders have got the OC from local authorities.As per RERA, all those projects where all development work has been completed and sale/lease deeds of 60 per cent of apartments/houses/plots have been executed or where all development work has been completed and application has been filed with the competent authority for issue of completion certificate, will be considered as complete projects.As per the UP Real Estate (Regulation and Development) Rules, 2016, notified on October 27, 2016, a housing project without an OC will also be considered an ‘ongoing project’ and then it will be mandatory for the developer to get the project registered under the new regulatory authority.When queried, Noida Authority’s Additional CEO Shishir Singh said: “If a builder allows people to live in incomplete buildings, this is a serious violation of law. We will examine all these cases.”Meanwhile, some builders in these areas are constructing residential societies that are not according to the layout maps that they got sanctioned.”A prominent Noida builder has constructed additional 96 flats, while in another project, over 100 extra flats have been constructed against the sanctioned layout map,” a senior UP government official said, requesting anonymity.It is pertinent to mention that following a High Court order last month, the Greater Noida Authority had sealed “illegal” flats in Supertech’s Czar Housing Society in Omicron Sector of Greater Noida. The Allahabad High Court had, on April 18, ordered sealing of more than 1,000 flats in the Supertech Czar residential project in Greater Noida as they were allegedly constructed without due approvals.

‘Penalty under realty Act applies to current projects too’

<!– /11440465/Dna_Article_Middle_300x250_BTF –>Penalties on account of delays under the new real estate rules are applicable to ongoing as well as new projects, a homebuyer body claimed today. Fight for RERA, the homebuyer forum, made the claims amid reports that the Real Estate (Regulation and Development) Act, 2016, does not penalise project completion delays before the Act came into force. The RERA came into effect from May 1. The body said “it is pertinent to clarify that the Real Estate Act, 2016, does not differentiate with regard to an ongoing project or a future project, whether it is relating to disclosures, violations, penalty, interest or compensation”. In a statement, it said the Act implies that all the penal provisions apply as much to an ongoing project as to a new one. According to Fight for RERA, it is mandatory for all projects, from the date of commencement of the Act, to first register with the regulatory authority and only then, promoters can book, sell, advertise or market these real estate projects.(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)

Goa to notify rules under new realty law in three months

<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Goa government will notify the rules under the new real estate regulation Act in the next three months, Town and Country Planning Minister Vijai Sardesai said today. The Real Estate (Regulation & Development) Act, 2016, which seeks to protect home buyers from unscrupulous developers, has come into effect from today. Under the Act, states had to notify realty rules and set up Real Estate Regulatory Authority (RERA) by April 30. “Goa could not notify these rules earlier because of the code of conduct imposed in the wake of Assembly elections. We will notify these rules in the next three months,” he told reporters. Sardesai said the Town and Country Planning Department has already drafted RERA rules, which protect the interest of property buyers in the state, the minister said. He said the government will form a regulatory body to ensure strict enforcement of these rules.(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)

Flat owners meet Yogi, seek action against builders

<!– /11440465/Dna_Article_Middle_300x250_BTF –>Flat buyers associations of Noida and Greater Noida today met Uttar Pradesh Chief Minister Yogi Adityanath seeking action against builders for allegedly harassing home owners by not delivering projects on time and charging extra money. The two associations, NEFOMA and NEFOWA, demanded that the Real Estate Regulatory Act (RERA), which was passed last year by Parliament, should be implemented in the state on priority. “We met UP chief minister today to raise our various concerns like significant delay in possession, builders charging extra from buyers in the name of cost escalation, late payment and increased farmers compensation,” NEFOMA President Annu Khan said. “We have also submitted list of 27 builders, which are harassing home buyers the most,” he said. Noida Extension Flat Owners Welfare Association (NEFOWA) President Abhishek Kumar was also present in the meeting. The Noida Estate Flat Owners Main Association (NEFOMA) complained that the authorities in Noida and Greater Noida are not providing any relief to buyers and rather helping builders, it said in a statement. “We have requested them to implement the RERA on priority so that it can stop the unlawful work from the builders and buyers can get relief,” Khan said. The two associations requested the state government to take up this matter seriously and take action against the builders who are harassing the buyers. “The RERA (same draft of central government) should be implemented in Uttar Pradesh and it should apply on those projects also which are in process. “Builders are applying for tower wise completion certificate to escape from this bill. With the help of authority they are getting this and forcing buyers to get possession of their flats,” the NEFOMA said. The real estate market is facing a multi-year slowdown that has led to huge delay in deliveries of housing projects of up to 6-7 years, forcing home buyers to stage protests and file legal cases against builders.(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)

Maha CM Devendra Fadnavis approves Real Estate Act (RERA)

<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Maharashtra chief minister Devendra Fadnavis approved the Real Estate (Regulation and Development) Act (RERA) that will come effect from May 1, 2017. The state housing department had prepared the rules and guidelines and submitted to the chief minister Fadnavis for his final approval. RERA came into force last May, 2016 and since October, states began issuing their version of the rules under the central act.The Maharashtra government published the draft rules in December and had sought suggestions and objections from various stakeholders. “We had received over 650 suggestions and objections. There are several bodies which has given the multiples suggestions so we clubbed them. The final rules are now approved and it will come in effect from May 1, 2017,” said senior state govt.As per this act, it will be mandatory for the developers to register and submit the approved to the RERA authority.”Everything will be transparent and in black and white now. Whatever apartments, the developers are selling that they have to upload on the website so that the buyers will be briefed about the sale and vacant apartments. If the 60% apartments of any buildings or the project is sold, then it is the mandatory for the developers to register the society. And the make the conveyance deed within six months from the date of the registration. If the developers fail to do that then severe action will be taken the developers,” said officials. Shailesh Puranik, MD at Puranik Developer welcomed the decision.”The RERA is very good for the consumer. We as the developer must keep 70% amount in the escrow account. It will help us to complete the project on time. Besides, the fly by night developers will run away that will be good for the real estate,” said Puranik.He also said that due to the RERA the property prices will go northward.” Ramesh Pranhu, chairman at Maharashtra Welfare Society Association (MSWA) said that given the present market conditions, all the flat buyers of ongoing projects are looking for the implementation of RERA in Maharashtra.”The best part is RERA covers all ongoing projects need to be registered under RERA. Any buildings which are not having OC are covered as ongoing projects. Having approved the Rules and Regulatory Authority being appointed for Maharashtra, the deadline prescribed by the Centre will be met,” said Prabhu. Niranjan Hiraman, chairman at Hiranandani Group said this new act will bring back the confidence in the market. “We are only concerned about the liquidity crunch. If the liquidity dries up, then we may face the problem while commencing the project,” said Hiranandani.

Real Estate: Affordable housing did well despite demonetisation; RERA will boost confidence

Year 2016 was a mixed year for developers and discerning buyers, though the announcement of the Real Estate Regulation Act (RERA) brought a huge cheer to the industry in 2017. It has been a year for the end-users, while investors have largely kept away from the market. A lot of launches, therefore, have specifically targeted the end users — offers on the booking amounts, and stretched payment schemes have only sweetened the deals further, leading to good traction in sales.

In the first half of the year, the residential resale market fared very well, with a lot of end-users looking for ready to move-in options. This also played well for buyers, who are averse to risk related to the product quality, and project possession timelines.

Representational image. ReutersRepresentational image. Reuters

Representational image. Reuters

The international properties market fared well in 2016 – Brexit provided an excellent opportunity for Indians to invest in the UK market. The benefit is not only with regards to the capital values, but the rental yields in these markets that are pretty exciting too, with markets like Manchester and Liverpool offering yield as high as 5-6 percent.

Across the country, the domestic markets have done well in the affordable segment. Effects of demonetization has shown largely on the luxury property market, primarily at the city centers; however, leading brands that cater to the affordable segments continue to do well. With regards to specific affordable micro-markets, affordability also comes with a range of amenities. Here the product is not much of a differentiator, however, the location is; MMR and NCR are good examples of such micro-markets.

In any other micromarket though, that has a mix of premium and affordable segment- parameters for affordability could be smaller sized homes, singular tower, fewer amenities, up to G+10 apartments. These products are existent in Tier II/Tier III and other metro cities like Bengaluru.

Some of the popular locations that have shown promise amongst other clusters are Thane (MMR), Gurgaon (NCR) and ORR (Bengaluru). There existing infrastructure, and an ongoing facelift shall see a lot more dynamics in the following residential clusters:

Thane (MMR): Thane has evolved as an excellent option for investment in the MMR. All support infrastructure like healthcare, education, retail and entertainment are within the cluster. With its existing infrastructure supported by accessibilities to all important clusters through roadways and rail, Thane has emerged as one of the most preferred destinations to invest in the MMR.

Gurgaon (NCR): One can look at Golf Course Road Sector 56, Golf course extension Sector 61, 66 and sector 67 and Sohna road sector 48, as most of the apartments in these locations come with a club, exciting retail, swimming pools, etc. Highlights of the location include vicinity to good schools and medical facilities. With rapid metro and widening of Golf Course Road, commuting and future appreciation is guarded.

ORR (Bengaluru): There are key micro markets adjoining ORR that have excellent support and Social infrastructure like Sarajapur Road, Bellandur, Panthur, Marathahalli, Haralur road and Mahadevapura that are highly preferred by IT employees. They are also well-connected with the other important clusters in Bangalore. Properties on main road of ORR location are very close to Leading IT tech-parks, like ECO Space, Embassy Tech Village, Prestige Tech Park, Salarapuria Soft Zone, Cessna Business Park and also surrounded with shopping malls

The real estate market looks extremely promising for the next year. The stage is now set for RERA to reinstate the much-needed confidence in the realty market. It is bound to instil immense positivity and confidence through its transparency and control mechanism.

(The writer is National Director, Residential Services, Colliers International)

First Published On : Jan 4, 2017 13:19 IST

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