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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. ...
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. ...
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. ...
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. ...
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. ...
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. ...
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. ...
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. ...
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. ...
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. ...
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. ...
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.” ...
Approximately, 400 Real Estate projects, out of 600 applications received, have got registered under HRERA. Instead of that, more than 250 builders are still escaping the legal process of registration of their incomplete projects. On the other hand, HRERA has taken 665 agents under its ambit out of more than 700 applications. This authority is delaying in taking action against these defaulting developers and agents as two requisite members are yet to be appointed however the Chairman of HRERA has got appointed already. ...
Developers of 780 building projects are jolted by RERA Karnataka as a highlighted warning in bold red is put on RERA Karnataka website which is “rera.karnataka.gov.in”. This step was taken by the authority after sending several notices to above-mentioned developers which were ignored by them. One top official gave the statement that RERA is not proclaiming anyone guilty in this case because there might be some genuine reasons behind non-registration of several projects; still, if the penalty of 10% of the building project cost is not paid, guilty developers should be ready for three-year-imprisonment. ...
The complainant Deepak Tejwani had booked a flat in the Siddhi project by the developer Anil Chabria at Shahad Kalyan. Mr. Tejwani claimed in the complaint that Mr. Anil Chabria had not even executed the agreement for sale but also failed to inform Tejwani about the status of construction. After filing a complaint in Consumer Disputes Redressal Commission (Maharashtra State), Mr. Tejwani approached MahaRERA. However, the bench of B.D. Kapadni and adjudicating officer dismissed this complaint and said’ “I find that the complainant cannot do a forum shopping”. ...
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