Noida homebuyers miffed as govt goes back on RERA amendment
The Real Estate (Regulation and Development) Act, 2016, came into effect on May 1, 2016, and the process of forming operational rules and putting in place the institutional infrastructure, to protect consumer interests and promoting the growth of the realty sector in India, was initiated.noida Updated: Jul 26, 2017 22:13 IST
Homebuyers in Noida and Greater Noida are upset with the Uttar Pradesh government as it failed to upload a copy of the revised Real Estate Regulatory Authority (RERA) rules on its website. The website, http://www.up-rera.in/, was launched by chief minister Yogi Adityanath on Wednesday in Lucknow and listed the RERA rules, albeit without the amendments it had proposed to do away with ‘pro-builder’ clauses.
The government set up the RERA website to safeguard homebuyers’ interests, following the Centre’s approval.
The Real Estate (Regulation and Development) Act, 2016, came into effect on May 1, 2016, and the process of forming operational rules and putting in place the institutional infrastructure, to protect consumer interests and promoting the growth of the realty sector in India, was initiated.
The UP urban housing department in May had announced an amendment to the rules, finalised earlier on October 27, 2016, for removing pro-builder clauses.
As per the latest draft (announced in May) of the rules, the government proposed to bring all under-construction and partially developed projects without an occupancy certificate, after May 1, 2016, under the ambit of the real estate regulatory authority. However, as per the October 27, 2016 notification, ongoing projects will not come under the authority if the builder has developed common facilities and applied for an occupancy certificate.
The RERA website has listed the rules without the amendment, causing confusion among buyers and builders about the definition of ‘ongoing projects.’
The chief minister had claimed that the rules were amended to remove pro-builder clauses and to benefit homebuyers in under-construction projects, who are being ‘harassed.’
As per the rules uploaded, thousands of homebuyers in under-construction projects have been left in the lurch as they cannot get their issues addressed by the authority.
“I fear that if the state government has not put the new rules on the website, RERA will be governed as per October 2016 rules. It means around 40 under-construction projects in Noida will not come under the ambit of RERA and thereby, thousands of homebuyers will suffer without getting a solution under the new law. We will write to Uttar Pradesh chief minister on this issue,” said SK Nagrath, president of Jaypee Aman flat buyers’ association. Jaypee Aman is among the partially completed housing projects.
In Noida, around 50 under-construction group housing projects have been delayed by three to four years due to a slowdown in the realty sector, affecting around one lakh buyers who had invested in projects that were to be delivered by 2012.
In Greater Noida, around 3 lakh homebuyers in 63 delayed realty projects are yet to get possession of flats that were to be delivered from 2012.
Similarly, 13 realty projects in the Yamuna Expressway industrial area, along the 165km Yamuna Expressway connecting Greater Noida with Agra, are yet to be delivered.
“The chief minister had assured to notify amendments at the earliest but now, he has launched the website without notifying (amended) rules and appointing a RERA chairman or members. How will the body protect our rights?” said Alok Kumar, who has filed a petition in Allahabad high court for speeding up the implementation of the Act.
“This is a serious issue (not uploading new rules). The UP government should have uploaded the amended RERA rules to make homebuyers aware of the changes. Why is the state government hiding the changes? I fear that builders have convinced the government of going back on its changes and leave under-construction projects outside the purview of the authority. I will take up this issue in Allahabad high court, as I have already filed a petition on the implementation of RERA,” said Kumar.
Mukul Singhal, the principal secretary, urban housing department, Uttar Pradesh, said, “We are still working on the revised rules. I do not think there is any problem with the rules already notified and put on the website. As far as buyers’ fears that builders will seek occupancy certificate or apply for it without providing common facilities in a housing project are concerned, local authorities, such as the Noida authority, will look into the issues.”
After the chief minister launched the website, builders in Noida, Greater Noida and Yamuna Expressway areas have started registering their under-construction projects.
“We had already prepared the necessary documents for getting our ongoing projects registered as and when the website becomes operational. Many builders have started registration immediately after the website launch,” said Amit Modi, director of ABA Corp and the vice-president of Confederation of Real Estate Developers Association of India (CREDAI).
Builders are of the view that the RERA will create a positive sentiment in and restore homebuyers’ confidence in the realty sector.