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The Gujarat Real Estate Regulatory Authority (GujRERA) has introduced new banking rules, effective January 1, 2025, to enhance financial transparency in real estate projects. Developers must maintain three separate bank accounts for each project: a RERA Collection Bank Account for buyer payments, a RERA Retention Bank Account for construction and land costs (70% of funds), and a RERA Transaction Bank Account for other expenses (30% of funds). Withdrawals from the retention account require certified documents uploaded to the GujRERA portal.Banks are mandated to implement auto-sweep transfers in a 70:30 ratio and restrict cheque books, debit cards, and online banking for the collection account to prevent misuse. Non-compliance could result in penalties of up to 5% of the project cost. These measures aim to improve financial discipline, ensure proper fund utilization, and protect homebuyers’ interests in Gujarat's real estate sector. ...
Maharashtra's Real Estate Regulatory Authority (RERA) has issued notices to approximately 11,000 housing projects that have lapsed, instructing developers to either complete the projects or refund the homebuyers' money. These projects had been delayed or left incomplete beyond their original deadlines, leaving many consumers in limbo. RERA is taking a strict approach to enforce transparency and accountability in the real estate sector, especially given the large number of pending projects. Developers have been given a deadline to respond to the notices. If they fail to act, RERA may take legal action, including initiating refund procedures. The move aims to ensure that homebuyers are protected and that developers adhere to the timelines established under the RERA Act. This also highlights the growing efforts of RERA to tackle delays and uphold consumer rights in the state. ...
Bihar RERA plans to auction land confiscated from defaulting builders to reimburse affected homebuyers. This initiative aims to recover funds for buyers who have been impacted by stalled or incomplete real estate projects. It represents a proactive step towards enforcing accountability and ensuring justice for homebuyers in Bihar ...
The Himachal Pradesh Real Estate Regulatory Authority (RERA) recently dismissed a structural defect complaint filed by homebuyers over 10 years after they took possession of the property. The authority cited Section 14(3) of the RERA Act, 2016, which limits the defect liability period to five years from the date of possession. Under this provision, promoters are obligated to rectify structural defects reported within five years. Complaints lodged beyond this timeframe are generally not entertained?This decision underscores the importance of timely action by homebuyers to address any construction-related grievances. The five-year defect liability period ensures accountability while providing a clear timeframe for reporting and resolving issue ...
The Union Ministry of Housing and Urban Affairs has urged states, including Karnataka, to adopt a more robust recovery mechanism for the Real Estate Regulatory Authority (RERA), similar to the Gujarat model. This suggestion comes as recovery orders from the Karnataka RERA (K-RERA) have faced significant implementation challenges, leaving numerous homebuyers unable to secure compensation despite favorable rulings.As of now, over ?700 crore in recovery orders remain largely unfulfilled due to lack of enforcement powers for K-RERA. Homebuyers and the central government have been advocating for giving RERA direct authority to enforce these orders, bypassing the need to rely on the state revenue department, which often leads to delays. This has left many buyers in projects like Ozone Urbana in Bengaluru stranded, unable to claim refunds or possession of their homes despite years of legal battles? ...
MahaRERA has recovered over ?200 crore from developers to compensate homebuyers, issuing more than 1,100 warrants across Maharashtra. Key recoveries include ?46.47 crore in Mumbai city, ?76.33 crore in the suburbs, and ?39.10 crore in Pune. Retired officials have been appointed to expedite proceedings, reinforcing transparency and accountability in the real estate secto ...
Haryana RERA (Real Estate Regulatory Authority) has mandated that real estate developers and builders in the state submit annual reports on their projects. This directive aims to enhance transparency, accountability, and the overall monitoring of ongoing and completed developments. The reports will provide updates on project status, financials, and adherence to timelines. The move is expected to strengthen the regulatory framework and protect the interests of homebuyers in Haryana. ...
The Odisha Real Estate Regulatory Authority (RERA) has published a list of builders who have failed to pay fines totaling Rs 6 crore. These fines were imposed due to non-compliance with various regulatory requirements. The builders have been urged to settle the dues, and RERA is taking further steps to ensure enforcement. The penalties are related to violations such as delayed project completions and non-registration of projects under RERA. ...
The Maharashtra RERA directed Spenta Enclave to pay interest to two homebuyers for delayed possession of flats in its Altavista project in Mumbai. Despite agreements promising possession by late 2018 and 2019, the builder failed to deliver, prompting the buyers to file complaints. The authority ruled under Section 18 of RERA, allowing interest compensation for delays, and recommended additional compensation for one buyer for mental agony. ...
The Builders' Association of India (BAI) has urged for significant reforms in Tamil Nadu's Real Estate Regulatory Authority (RERA) processes, citing inefficiencies that are impeding the real estate sector. Key concerns include prolonged project approval times, lack of procedural clarity, and administrative delays. The BAI emphasized the need for a streamlined system to enhance transparency, improve operational efficiency, and foster a more conducive business environment for developers. The reforms are seen as critical to boosting confidence among stakeholders and accelerating growth in Tamil Nadu's real estate market. ...
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has received applications from prominent developers, including Lodha Group, K Raheja Corp, Puranik, and Lokhandwala Infrastructure, seeking deregistration of 19 real estate projects across Maharashtra. These projects are located in cities such as Mumbai, Thane, Pune, Nashik, and Nagpur. The reasons cited for deregistration include financial difficulties, economic infeasibility, ongoing legal disputes, family disputes, and changes in government regulations restricting construction. MahaRERA has invited public objections to these applications within 30 days from the date of the list's issuance ...
The Bombay High Court has instructed all municipal corporations and councils in Maharashtra to link their websites with the Maharashtra RERA portal. This integration is intended to ensure better coordination, enhance transparency in the approval of real estate projects, and facilitate compliance with RERA rules. The court emphasized that this measure will help buyers access accurate project information and hold developers accountable. ...
The Telangana Real Estate Regulatory Authority (RERA) has imposed an ?18 lakh penalty on Sterling Homes, a real estate developer, for project delays. This action stems from a complaint by a buyer who alleged that the developer failed to deliver the property on time, violating RERA regulations. The authority ruled in favor of the buyer, emphasizing the importance of adhering to agreed timelines and safeguarding consumer interests in the real estate sector. ...
Buildox, a real estate firm, has been fined for collecting flat booking amounts without obtaining prior approval from the Telangana Real Estate Regulatory Authority (RERA). RERA regulations require developers to register their projects before accepting any payments from homebuyers. The fine serves as a reminder to developers about the importance of complying with RERA rules to ensure transparency and protect consumer interests in the real estate sector. ...
The Telangana Real Estate Regulatory Authority (RERA) has directed Bhrigu Infra, a real estate developer, to refund Rs. 20 lakh to a buyer who had paid for a plot that was not registered as promised. The buyer had entered into an agreement with the developer for the purchase of the plot, but the plot was not registered under RERA, which is mandatory for real estate transactions in the state. RERA found the developer in violation of the rules and ordered the refund of the amount paid along with interest.This decision underscores the importance of RERA registration for developers and offers protection to buyers against such defaults. ...
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