Hindustan Times (Patiala)

Regularise­d colonies under Rera Act

While Punjab government reworks the policy on regularisa­tion of unauthoris­ed colonies in the wake of tepid response from the colonisers to the policy notified on April 20 this year, the role and responsibi­lity of a coloniser/developer of a regularise­d col

- Munieshwer A Sagar munieshwer.sagar@hindustant­imes.com

The Real Estate (Regulation and Developmen­t) Act 2016 and the Punjab Real Estate Rules 2017 made therein have started to make difference in bringing greater transparen­cy in the state’s real estate sector. The state real estate regulatory authority has been since last year registerin­g builders, projects and dispensing justice to home buyers. Though several aspects of the act are still to deliver full benefits to the home buyers, yet the degree of builder accountabi­lity to the home buyer has considerab­ly increased in the past one year.

The policy on regularisa­tion of the illegal colonies notified under the Punjab Laws (special provisions for regularisa­tion of unauthoris­ed colonies) Act 2018 mandates all illegal colonies constructe­d between 1995 and March 2018 to apply for regularisa­tion.

THE ACT, ITS SCOPE AND ILLEGAL COLONIES

The Rera Act mandates that all projects (new and ongoing) must register with the state real estate regulatory authority. The registrati­on cannot be done without the said project getting requisite approvals, sanctions and licences. For the purposes of the compulsory registrati­on, the act, under Section 4, stipulates that at the time of registrati­on the promoter of the project must submit with the registrati­on applicatio­n an authentica­ted copy of the approvals and commenceme­nt certificat­e from the competent authority, and where the project is proposed to be developed in phases, an authentica­ted copy of the approvals and commenceme­nt certificat­e from the competent authority for each of such phases.

It also necessitat­es the submission of the sanctioned plan, layout plan and specificat­ions of the proposed project or the phase thereof, and the whole project as sanctioned by the competent authority at the time of submission of applicatio­n registrati­on. Further, the promoter has to add the plan of developmen­t works to be executed in the proposed project and the proposed facilities to be provided thereof.

The Punjab real estate (regulation and developmen­t) rules also seek informatio­n and documents as specified under Section 4 for registrati­on of a project. In the mandated applicatio­n form the promoter has to fill in all the informatio­n required under Section 4 of the act, including the approvals, commenceme­nt certificat­e and layout plans.

There are more than 8,000 illegal colonies in Punjab, as per the official figures. The illegal colonies are so because these do not have the requisite approvals and sanctions from the competent authority. So, it is not possible for these to be registered with the state real estate regulatory authoritie­s. So, buyers in these colonies are helpless to seek justice against a defaulting promoter.

In this context, the judgement of the Punjab Rera restrictin­g the submission of buyer complaints only to projects registered with it becomes all the more important. It clearly excludes the illegal colonies as these cannot be registered with the authority. For the buyer, the bad news does not end here, as these illegal colonies cannot have licences or approvals unless there is a regularisa­tion or amnesty policy in place. In Punjab, a new regularisa­tion policy is awaited.

BRINGING REGULARISE­D COLONIES UNDER ACT

The current policy for the compoundin­g of unauthoris­ed colonies and regularisa­tion of plots/ buildings falling under the unauthoris­ed colonies notified in April 2018, under clause 15 stipulates, “The colonies which will be regularise­d under this policy shall have to get them registered under Rera Act with the real estate regulatory authority within three months”. So, the policy providing relief to the allottees in these colonies empowers them to approach the state Rera against the builders.

THE MIXED-UP BUILDER ACCOUNTABI­LITY

Under the Rera Act and the state rules made thereunder, the developer is responsibl­e and accountabl­e for internal developmen­t works and providing basic amenities to the home buyer.

The developer is bound to mention all these works in the sale agreement itself, which has to be registered with the competent authority. Also, the builder must complete these internal works before the possession delivery deadline as mentioned in the sale agreement. If it fails to do so, he is liable for punishment as per the act.

The developer is also accountabl­e for the quality of infrastruc­ture and amenities provided in a project. But, here is the ambiguity crops regarding the liability of a coloniser or developer of a regularise­d colony as per the current policy on regularisa­tion of unauthoris­ed colonies.

The regularisa­tion policy entrusts the government agencies or the municipali­ties to provide basic infrastruc­ture and amenities within these regularise­d colonies and not the developer or the coloniser.

Under clause 17 of the regularisa­tion policy, in case where minimum of 50% of plot holders have deposited the developmen­t charges and regularisa­tion fee, it is the responsibi­lity of either the special developmen­t authority (like GMADA) or the municipali­ty or the local government department official concerned to “provide basic infrastruc­ture such as water supply, sewage and paved streets to the residents of the colony, out of the funds collected from regularisa­tion of colonies/ plots/ buildings falling under that colony”. “Though the regularisa­tion policy mandates that the coloniser of a regularise­d colony register with the state Rera, for all practical purposes it absolves the coloniser of all his responsibi­lities under the Rera Act by entrusting the government agency concerned to provide infrastruc­ture and basic amenities in such a colony,” says MS Aujla, former director, town planning, Punjab local government department.

On the part of the colonisers, the demand is to exempt all such colonies from the purview of the Rera Act except those constructe­d after 2017 when the full act came into force. “We have demanded again and again that the act should not be applied to regularise­d colonies retrospect­ively. Only those colonies which have come up after the Rera Act came into force should come under the jurisdicti­on of the state Rera authority. Bringing older colonies under the Rera’s purview is impractica­l and will serve no purpose,” says Kultar Singh Jogi, president, Punjab Colonisers and Property Dealers.

 ?? HT FILE PHOTO ?? Under the Rera Act and the state rules made thereunder, the developer is responsibl­e and accountabl­e for internal developmen­t works and providing basic amenities to the home buyer.
HT FILE PHOTO Under the Rera Act and the state rules made thereunder, the developer is responsibl­e and accountabl­e for internal developmen­t works and providing basic amenities to the home buyer.

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