Real Es­tate Bill is an Act now

Consumer Voice - - In The News -

The Real Es­tate (Reg­u­la­tion and Devel­op­ment) Bill, 2016, be­came an Act on 1 May, thereby set­ting in mo­tion the process of mak­ing rules as well as putting in place in­sti­tu­tional in­fra­struc­ture to pro­tect the in­ter­ests of home buy­ers in In­dia. Rules for im­ple­ment­ing the pro­vi­sions of the Act have to be for­mu­lated by the cen­tral and state gov­ern­ments within six months – that is, by 31 Oc­to­ber – the max­i­mum pe­riod stip­u­lated in Sec­tion 84 of the Act.

Ac­cord­ing to Sec­tion 20 of the Act, state gov­ern­ments have to es­tab­lish Real Es­tate Reg­u­la­tory Au­thor­i­ties within one year of the law com­ing into force. Th­ese au­thor­i­ties will de­cide on the com­plaints of buy­ers and de­vel­op­ers in 60 days.

Con­sumer court or­ders Jaypee to pay 12 per cent an­nual penalty to home buy­ers in Ka­lypso Court project

The Na­tional Con­sumer Dis­putes Re­dres­sal Com­mis­sion (NCDRC) has im­posed a penalty of 12 per cent per an­num on Jaypee Group for de­lay­ing the pos­ses­sion of homes to buy­ers in the Ka­lypso Court project on the Noida–Greater Noida ex­press­way. NCDRC has also di­rected the Noida-based builder to hand over the pos­ses­sion of apart­ments to buy­ers by 21 July, fail­ing which it will have to pay a penalty of Rs 5,000 per flat per day till the project is com­pleted.

The de­vel­oper has also been told to pro­vide ad­e­quate park­ing space in the project and re­fund the ex­cess amount, if any, that has been col­lected from cus­tomers for park­ing slots, with 12 per cent in­ter­est per an­num from the date of the charge. The com­mis­sion held that builders could not charge buy­ers on in­crease in su­per area of an apart­ment af­ter con­struc­tion un­less they have prior con­sent of the buyer.

Court makes Mum­bai re­al­tor pay for “pulling a fast one”

The Na­tional Con­sumer Dis­putes Re­dres­sal Com­mis­sion has di­rected the Mum­bai-based Lodha Group to re­fund Rs 1.02 crore for “ar­bi­trar­ily” can­celling a flat booked by two se­nior cit­i­zens in Thane. This is in ad­di­tion to 18 per cent in­ter­est on the prin­ci­pal amount from end-2010.

The Com­mis­sion held that the builder “il­le­gally with­held” the money for five years and or­dered it to pay the cou­ple an ad­di­tional Rs 1 lakh in “com­pen­sa­tion” within 90 days. “We hereby con­demn the at­tempt to pull a fast one on the com­plainants,” says the or­der.

The builder had can­celled al­lot­ment in June 2011 af­ter the com­plainants, Dr Naren P Sheth and Dr Sudha N Sheth, op­posed what the Com­mis­sion has called the “il­le­gally de­manded ad­di­tional amount” of Rs 3.96 lakh to­wards car park­ing and took the mat­ter to the dis­trict con­sumer fo­rum. The builder “hur­riedly” sold the apart­ment to an­other buyer in July 2011, a month be­fore the case was filed be­fore NCDRC – an ac­tion the panel de­scribed as “bor­der­ing on con­tempt of court” and “clearly es­tab­lish­ing the builder's mala fide in­ten­tion”. The or­der, passed by a bench of Jus­tice J M Ma­lik and Dr S M Kan­tikar, said the builder could not de­mand ad­di­tional amount for park­ing as per law, and that it “de­picts de­fi­ciency and un­fair trade prac­tices”.

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