UP regulatory body to keep Noida, Ghaziabad realtors in check
The stage is now set for the formation of a real estate regulatory authority (RERA)Updated: Nov 02, 2016 01:31 IST
After the Uttar Pradesh housing and urban planning department rolled out the UP Real Estate (Regulation and Development) Rules, 2016, the stage is now set for the formation of a real estate regulatory authority (RERA).
The body is likely to be constituted soon and is expected to benefit thousands of aggrieved homebuyers. However, it may spell trouble for developers who are failing to complete their housing projects in Noida and Greater Noida for many years.
As per the UP Real Estate (Regulation and Development) Rules, 2016 notified on October 27, 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 developer (of an ongoing project) to get it registered under the new regulatory authority.
There are around 60-70 ongoing large-scale group housing projects in Noida and Greater Noida. Around one lakh housing units are on offer in these projects. In many group housing complexes, homebuyers have shifted into partially completed projects but the developer is yet to complete required common facilities to obtain an occupancy certificate from the Noida authority.
“Homebuyers in the partially completed projects are suffering because the developer has not built facilities such as sewage treatment plant, parking, not obtained fire clearance and installed adequate lifts,” Indrish Gupta, founder-member of Noida extension flat owners’ welfare association, said.
“The good aspect for buyers is that such projects (apart from new ones) will also be controlled by the real estate regulator and justice will be done to buyers’ investment,” he said.
Clause 2 (1) H of the rules states that a realty project without an occupancy certificate is classified as ongoing.
“Developers will have to register ongoing projects and deposit 70% of the money collected from buyers into a separate account. Developers who are violating norms will be liable to face imprisonment up to three years,” NR Verma, adviser to Uttar Pradesh housing and urban planning department in Lucknow, said.
Rules of the regulatory authority empower homebuyers of an ongoing project to file a complaint against the developer. Officials said that the regulatory authority will keep a strict check on developers who have collected total flat cost but are yet to complete the project.
“In many cases in Noida, developers are found to have collected total flat cost, along with the registration fees, three years ago but are yet to complete the project. It means they will not get any money from buyers even after registering with the new authority. Such builders will either have to borrow money or face legal action,” PVS Prakash, a software engineer who is fighting for buyers’ rights, said.
Developers said that the new law will help check unscrupulous developers but also aid those who lodge complaints with ulterior motives.
“We welcome the regulatory body with the hope that it will benefit the sector as it will empower end-users. At the same time, I hope that the law will not be misused by buyers to trouble developers for personal gains. It would have been appropriate if government bodies were also made accountable for the delay in issuing clearances,” Amit Modi, vice-president of the confederation of real estate developers association of India (Credai), western UP, said.
First Published: Nov 02, 2016 01:31 IST