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New guidelines make registration obligatory for all real estate belongings with RERA

Tuesday 16th January 2018

To skip heavy penalties and rigorous imprisonment, TNRERA directed all concerned real estate and building owners to register their properties under RERA Act. The new guidelines stated that without obtaining consent from RERA authority no one should involve in development and sale of any building or real estate project having development or built-up area of 500sqm moreover if the number of units exceeds eight one should register this project with this authority. Now every certified building owner or promoter has their registration number which they got under RERA. This number must be mentioned with their own advertisement while doing sale and development of the particular property. ...

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TNRERA needs to draft rules for issuing completion certificate to overcome its own limitations

Tuesday 16th January 2018

The shackle of the non-existence of mechanism, to conduct checks and issue completion certificates for housing projects in areas under the DTCP (Directorate of Town and Country Planning), is preventing TNRERA (Tamil Nadu Real Estate Regulatory Authority) to take prompt action against developers who are violating the rules. However, such violations can be eliminated if completion certificates are made obligatory in areas under the DTCP which covers the entire state except for Chennai Metropolitan Area. Moreover, TNRERA stated that the real estate act does not allow the Chennai Metropolitan Development Authority (CMDA) to inspect buildings; instead of that CMDA is issuing completion certificate after inspecting the construction.  ...

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Punjab RERA passes benchmark order, 3 conditions must be fulfilled before complaining about unregistered projects

Friday 12th January 2018

If homebuyers want to file a complaint against a promoter whose project is not registered with RERA, in this case, the complaint shall not be maintainable before Punjab RERA. This Authority solved out the obscurity related to complaint’s maintainability where the errant builder violation took place prior to the commencement of the RERA Act. Henceforward, if any complainant wants that its complaint must be considered so he shall fulfill 3 conditions. The alleged violations, though commencing before the enforcement of the RERA Act, must be continuing till present. The alleged violations must also comprise an infringement of the RERA Act and the rules and regulations made thereunder. Any complaint shouldn’t be pending in any consumer forum before approaching RERA. ...

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Government’s decision of 100% FDI in real estate brokerage will attract international investment

Friday 12th January 2018

The government of India took meritorious decision to allow 100% Foreign Direct Investment (FDI) under automatic route in the real estate broking services. Many property consultants believe that this initiative is not a new provision; however, the re-introduction will revamp the path of investment in Indian brokerage companies through International counterparts. Furthermore, this move will encourage International brokerage firm to establish their own subsidiaries in India. It has been clarified by the Cabinet that real estate broking services would not be classified as Real Estate business so companies, which work under these broking services, are eligible for 100% FDI under the automatic route.  ...

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To make sure builders can’t overlook RERA rules, Gujarat RERA imposes hefty penalty on promoter

Friday 12th January 2018

A Vadodara based builder, Jayesh Patel was penalized by Rs. 3 lakh for not handing over the possession of flats on time which was in his scheme. In case of failing the process of project registration with RERA, a builder can be fined up to 10% of the project. In spite of that, RERA cited the fact that the builder has already gone through a lot in selling his units besides delay in construction work due to lack of funds. Back to back penalty cases reflect that RERA authority is in no mood to spare the culpable builders. ...

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RAJ-RERA is in action, fraudulent builders will get punished anyhow

Thursday 11th January 2018

Rajasthan RERA authority has given itself to consumers by taking action against violators of Real Estate (Regulatory Authority) Rules. In an idiosyncratic case, which has taken place in Rajasthan, the authority took action against 4 developers for the very first time since initiation of RERA in May last year.  In the verdict, two developers were asked to pay a fine that was 4 times the RERA registration fees as they were not able to complete formalities related to document submission even after the registration of their projects with RERA. Furthermore, two other were served show-cause notices because they just started promoting and marketing their projects without registering them with RERA.   ...

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Wait for Goa’s RERA website is over, Goans heave a sigh of relief

Thursday 11th January 2018

Amid of certain ambiguities and assumptions; finally, the website of Goa RERA for online registration of real estate projects and agents will be unveiled within a week. Now builders don’t need to wait for so long because they will be able to register their projects on the website from its inception. Sudhir Mahajan, the chairman of Goa RERA, disclosed that incorporate changes, which were suggested by industry stakeholders, led to the delay in the launch of this website but now the trial run of this online portal is on and the final launch will be made within a week.  ...

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TNRERA is seeking help from public sector banks to ensure more registration

Wednesday 10th January 2018

TNRERA has come up with a new strategy to make sure that developers will adhere to rules of RERA registration. In this matter, TNRERA will approach the concerned banks because it believes, “if banks insist on the TNRERA registration number before providing loans to prospective buyers, the builder would be left with little options expect to register his project with the authority.” This step will be taken in the aftermath of the disproportion between the number of housing projects registered with the realty regulator and the volume of planning permissions. ...

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MahaRERA lashes out at developer for selling an open car parking slot

Wednesday 10th January 2018

Buyers Devendra and Pushpa Agarwal alleged that the developer Nandraj Developers Pvt Ltd. of a project, named Royal Residency C in Lalbaug, had charged them Rs 25,000 towards allotment of an open car parking slot. The Chairman of MahaRERA Gautam Chaterjee heard the whole matter in which Agarwals paid a consideration for one stilt car parking, but details of closed car parking weren’t shown on the MahaRERA website and directed the developer to refund the amount collected from selling that parking area. One more thing which must be considered that selling of parking spaces even before RERA came into force was not allowed. ...

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BAI’s appeal: One regulatory authority should be established for intransigent cement industry

Tuesday 9th January 2018

Investment Information & Credit Rating Agency stated that India has the world’s second-largest cement industry; however, the Builder’s Association of India (BAI) wanted the formation of a regulatory authority to control unfair practices of this industry and to tame monopoly which has been created by it. BAI also demanded that some reduction should be done in 18% of GST which is levied on the construction sector only. BAI believes that this regulatory will surely bring the transparency and smooth growth.  ...

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Goa Realty Sector wants clarity on implementation of RERA rules

Monday 8th January 2018

Officials and builders, from the town and country planning department, said that real estate sales graph has shown severe slow down as homebuyers and developers are not very clear about RERA implementation. Therefore Developers of Goa want implementation lucidity of RERA rules, predominantly related to compliance. Furthermore, the president of CREDAI-Goa, Jaganath Desh Prabhu Dessai stated that once registration website is live, they should get 90 days to register.    ...

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Hike up in the prices of inputs would fetter the affordability of housing and infrastructure projects says “CREDAI”

Monday 8th January 2018

Builders of the Hyderabad state are soliciting for the intercession of government to control the exponential rise in inputs’ prices. The General Secretary of CREDAI (Confederation of Real Estate Developers Association of India), P Rama Krishna Rao stated, in a curtain raiser event of a property show in Hyderabad, that price of cement has increased rapidly only in about 8 to 10 weeks and this would consider a paradigm shift in the affordability of housing and infrastructure projects taken up by the Telangana government.  ...

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To de-stressing builders, BAI will organize the three-day national convention in Bengaluru

Monday 8th January 2018

Builders’ Association of India (BAI) is going to organize the three-day national convention, which will start from January 19, 2018, to help the builders who are in great turmoil because of “lack of clarity” on certain taxes and acts. The theme of this convention is “Building India.” It will address the problems of Builders who are on the verge of bankruptcy due to factors like, lack of clarity on GST.  Convention Chairman Bhishma R Radhakrishnan shared that Real Estate Sector is the only sector which is paying a wide range of taxes such as, GST, Sales tax, Municipal Taxes and so on.   ...

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MahaRERA contends absence of agreement of sale will lead to zero compensation

Saturday 6th January 2018

Homebuyers of a Bhagtani project registered a complaint in MahaRERA against the Promoter of Bhagtani’s Serenity project in upscale powai. But all efforts were in vain and they came back empty-handed as the Adjudicating officer and Member, MahaRERA, Bhalchandra Kapadnis dismissed the plea of 15 home buyers in the absence of a registered agreement for sale.  The Apex Authority stated that issuance of allotment letter is the most necessary and initial stage of agreement of sale. Without the agreement of sale, the Section 18 can’t be invoked. In Section 18 it is clearly mentioned that a promoter is liable to pay interest or compensation if he fails to complete or is unable to give possession of an apartment in accordance with the term of the agreement for sale.  ...

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In the “possession delay” case, MahaRERA can declare arbitration process void

Friday 5th January 2018

In an unprecedented pronouncement, MahaRERA stipulated that this authority can nullify arbitration applications and issue orders to complaints filed by a co-purchaser.  In this matter, MahaRERA shed some light on the above-mentioned statement and said that this Authority has the jurisdiction over the arbitration applications as RERA Act was ratified after the Arbitration and Conciliation Act of 1996. Furthermore, MahaRERA stated that if any flat is booked in the name of two people (suppose two people are Husband and Wife) and one of them is party, then a complaint which is filed by one of them is “maintainable in law.”  ...

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