Realty projects delayed by decade will be now included under regulatory act

In a relief to occupants of decade-old projects that are delayed due to absence of occupation certificate, Real Estate Regulatory Act (RERA) committee is considering including such projects under the act. Earlier, the inclusion of these projects was not specified in the act; however, the members are now considering overseeing them under RERA act.

Earlier, the act allowed to consider structures that do not have an OC but only if the developer had saleable flats. This means the developer will have to register the project. One of the committee members requesting anonymity said, “We are still deciding on including such projects under the act to address disputes of its occupants. However, the act has to focus on new projects and prevent buyers from getting duped. Currently, we are reviewing other suggestions and objections currently and a decision will be made soon.”

However, Anand Gupta, spokesperson of Builders Association of India (BAI), disagreed with the inclusion of delayed projects in the act. Gupta said, “The committee should rethink before going ahead with any such ideas. The act says that it will penalise the developer with 10% of the project cost in such cases If they are planning to hear issues of occupants of decade old projects, then who will they recover the fine amount from when the developer has handed over the project to the society.”

Expected to protect the rights of property buyer and to bring in transparency in the real estate sector, the committee is now focusing on rechecking the grey areas of the act. There are around 10,000 structures in the city that do not have an occupation certificate.

An OC is issued by Brihanmumbai Municipal Corporation to signify that the building is complete as per the approved plan and is in compliance with law without which it is difficult to get water and power connections.