Noida builders rush to get occupancy certificates to escape RERA ambit
Noida and Greater Noida builders are in a hurry to get OCs so that their projects are not under the new real estate regulatory authority to be effective from May 1noida Updated: Apr 12, 2017 13:26 IST
Builders in Noida and Greater Noida whose projects are nearing completion are in a hurry to get occupancy certificates so that these projects are not governed by new real estate regulatory authority to be effective from May 1 this year.
With an aim to safeguard the interests of homebuyers, Uttar Pradesh government set up the Real Estate Regulatory Authority (RERA) following central government’s approval. It is likely to be effective from May 1 across the state.
Homebuyers alleged that some developers want to obtain occupancy certificates (OC) without providing required basic amenities so that the RERA rules don’t apply to their projects.
“As RERA will ensure unscrupulous realtors face strict legal action and refund buyer’s money without any delay including other benefits (for buyers), many developers in Greater Noida and Noida are in hurry to get OCs. But we will protest if OC is given to an unfinished project,” said Abhishek Kumar, president of Noida Extension flat owners welfare association.
The rules define ‘ongoing projects’ as ones where development is going on and for which the completion certificate has not been issued.
As per RERA rules complete projects include those where all development work have been completed and sale/lease deeds of 60% of the 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.
As per the UP Real Estate (Regulation and Development) Rules, 2016 notified on October 27, 2016 a group housing project without an occupancy certificate (a documentary proof of completion) will be considered an ‘ongoing project’ and it will be mandatory for the developer to get the project registered under the new regulatory authority.
“Realtors fear if their project comes within the ambit of RERA, they will face tough action,” said Danish Khan, a homebuyer.
Officials at the Greater Noida authority said that some developers are trying to bend the rules.
“They are applying for unfinished projects because they think by doing so they can escape RERA. They are also applying for part completion to stay away from the RERA ambit,” said an official.
As on date, six OC applications are in process in Greater Noida and many are under process in Noida too.
The Noida and Greater Noida authorities chief executive officer Deepak Agarwal said that they will follow all laid down procedures before issuing an OC to a project.
“We will not issue an OC to a project until the builder submits all required certificates including fire NOC, environmental clearance papers and other necessary documents. If any builder wants to get an OC without submitting necessary documents, it will not be allowed at all,” said Agarwal.
First Published: Apr 11, 2017 23:49 IST