New rules will help homebuyers in holding builders accountablecities Updated: May 18, 2017 22:15 IST
More than 100 under-construction real estate projects are likely to be monitored and regulated under the Real Estate (Regulation and Development) Act, 2016, if the UP government’s move of rewriting the real estate regulation rules is sanctioned.
As per the new draft of RERA rules, all realty projects, which have not obtained occupancy certificate till May 1, 2016, will come into the ambit of the real estate regulatory authority.
“There are 39 realty projects, whose occupancy certificate applications are pending with the Noida authority planning department. There may be another 50 projects without occupation certificates which will be regulated by RERA. We hope that after changes in the real estate act, there is be clarity with regards to completed and ongoing realty projects. It may solve a bulk of problems being faced by the homebuyers,” said Shishir Singh, additional chief executive officer of the Noida authority.
UP government’s pro-buyer stance pertaining to the RERA rules, officials said, will bring relief to thousands of homebuyers, who have purchased flats in yet to be finished projects.
The new rules with stricter fines, however, may also adversely affect homebuyers who have invested in buying flats in sick projects.
“The changed RERA rules will put much-needed pressure on builders to deliver projects on time or face jail time. If a builder fails to fulfil promises made to buyers but wants to save himself from going to jail, he will have to pay 10 percent of the total project cost as penalty under new rules of RERA. Earlier, the provisions of the act provided an escape route to the builder under the ‘ongoing project’ definition, which has now been diluted,” said SK Nagrath, president of Jaypee Aman flat buyers association.
There are 17 under construction projects in the Yamuna Expressway area and Greater Noida has around 40 projects that will now be governed under RERA.
“Realty projects will now be regulated as per new RERA rules, once these are notified. This will help thousands of homebuyers and it will be easier for officials to solve buyer-builder disputes under the new rules,” said a Greater Noida authority official.
The Noida authority at present is not allowing new project operations to start till RERA rules are executed.
“Once the Real Estate (Regulation and Development) Act rules are notified and RERA is formed, new projects can start registration with us,” said Shishir Singh.