Power to buyers under new RERA in UP
The Uttar Pradesh government has rewritten real estate regulation rules, doing away with pro-developer clauses that diluted the country’s firstever law to clean up a sector beset by problems of delayed projects.
The new rules, yet to get the state government’s nod, bring all ongoing projects where completion certificate was not issued on May 1, 2016 when the Real Estate Regulation Act (RERA) was notified, into its ambit. The Samajwadi Party government had tweaked the definition of ‘ongoing project’ to keep majority of projects in cities such as Noida, Greater Noida and Ghaziabad out of the purview of the real estate regulator.
“Yes, we are ready with the fresh draft. We have already held two meetings to give final touches to the rules and intend to get the necessary approval by May 31,” said special secretary, housing, Mahendra Bahadur Singh when contacted by Hindustan Times. Singh heads the panel formed by the Yogi government to rewrite the rules after consumers’ group met the UP CM and told him that instead of homebuyers the rules were framed to favour the builders.
“We have already held two meetings on the subject. Rules have been framed keeping in mind people’s aspirations and the government’s commitment to adopt the Centre’s Act in letter and spirit,” he said.
As per the RERA, an ongoing project is basically a project “for which the completion certificate has not been issued as on May 1, 2015” on the date of commencement of the Act. This basically makes sure that many home projects which are work-in-process come under the Act.
However, four ‘exclusion’
Where services have been handed over to the local authority for maintenance
Where common areas and facilities have been handed over to the Residents’ Welfare Associations.
Where all development works has been completed and sale/lease deeds of 60% of the apartments/ houses/plots have been executed.
Where all development works has been completed and application has been filed with the competent authority for issue of completion certificate
clauses (see box) were added in the UP real estate rules 2016 during the SP regime to keep a majority of the projects out of RERA.
These ‘exclusion’ clauses have now been dropped. Similarly, recommendations on fines and penalties on developers that were also watered down too have been restored as provided in the Centre’s Act.
Other relaxations relating to 70% cap on funds to be utilised by the builder from the money taken from the home buyers have also been reincorporated as provided in the original.
“We have now suggested that a committee, which should also have a representative of RERA, should monitor all such expenses by the developer,” said an official.