Up rera rules need more teeth

HT Estates - - FRONT PAGE -

What UP RERA rules say: The Ut­tar Pradesh hous­ing and ur­ban plan­ning de­part­ment rolled out the UP (Reg­u­la­tion & De­vel­op­ment) Rules, 2016, on Oc­to­ber 27 that seek to pro­tect new home­buy­ers from un­scrupu­lous de­vel­op­ers and safe­guard the in­ter­ests of al­lot­tees of on­go­ing projects What is an on­go­ing project? Under the UP rules, a project where de­vel­op­ment works have been com­pleted and sale deeds of 60% of units have been ex­e­cuted, has been ex­cluded from the def­i­ni­tion of an on­go­ing projects. This may im­pact buy­ers who may have moved in under ‘duress’ Amended UP Apart­ment Act, 2016: If the Act had not been amended, it along with the state’s new RERA rules would have pro­vided home­buy­ers in­vest­ing in UP with a dual safety net with teeth Com­pen­sa­tion: Under the Cen­tral rules, de­vel­op­ers will be re­quired to pay com­pen­sa­tion to the al­lot­tees with an in­ter­est rate of SBI’s high­est mar­ginal cost of lend­ing rate plus 2% within 45 days of it be­com­ing due. The rate of in­ter­est is not spec­i­fied in UP’s ver­sion of the rules The Cen­tral rules: The min­istry of hous­ing and ur­ban poverty al­le­vi­a­tion (HUPA) on Oc­to­ber 31 no­ti­fied the fi­nal rules to im­ple­ment RERA 2016, which will be ap­pli­ca­ble for five Union ter­ri­to­ries

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