Tag: RERA

Can HIRA and RERA co-exist in West Bengal?

The government is examining whether two separate Acts on the subject of regulation of the real estate sector — one enacted by the Centre and the other by a state — can coexist.  The ministry of housing and urban affairs announced on Twitter on Thursday that it is examining whether both Acts can co-exist.

co-exist
RERA was fully notified in 2017 and states were given powers to notify their respective rules and appoint regulatory authorities. While this is applicable across the country, except in J&K, the West Bengal government is the only one that has come out with its separate legislation, HIRA.

The government had earlier constituted a sub-committee in the Central Advisory Council meeting with the objective of persuading the Bengal government to adopt RERA, besides oversee the implementation in other states. However, this sub-committee has not been notified till now.

Having central and state Acts on the same subject is under examination. A sub-committee under these circumstances will serve no purpose. Full compliance of transformational legislation like RERA will bring positive changes in the sector which will be good for all stakeholders,” tweeted the ministry of housing and urban affairs.

Both RERA and West Bengal’s HIRA differ on the definition of force majeure clause and garage. Under RERA, force majeure clause can be invoked only in case of war, draught, floods, earthquake, fire or any other natural calamity affecting the regular development of real estate projects.

However, according to HIRA, over and above the conditions listed under RERA, force majeure clause can be declared for any other circumstance prescribed.

RERA has defined garage as a place within a project that has a roof and walls on three sides for parking any vehicle, but it does not include unenclosed or uncovered parking area. HIRA, on the other hand, says a parking slot means such an area as may be prescribed, and garage as sanctioned by the competent authority.

Experts have raised concern over the dilution of the Act and are of the view that states need to follow RERA in letter and spirit. According to them, states may decide to follow the model adopted by Bengal if it goes through, and may result in making RERA redundant.

Most states have initiated the process of setting up the regulator and authorities from Maharashtra, Punjab, Madhya Pradesh, Haryana and Gujarat have already started passing the orders. Kerala and Telangana have notified their state rules under RERA, but are yet to set up an authority.

Plagiarism acquisition against WB HIRA: Has Mamata Banerjee Govt. went on cloning central’s blueprint?

So far a lot has been said about the Real Estate (Regulation and Development) Act, 2016 (RERA). But still what remains untold is Bengal Government’s final take on this consumer-friendly Act.

The earlier speculations indicated that West Bengal Govt. might introduce the Housing Industry Regulation Act (HIRA) by the end of 2017. Around so much buildup stories, finally West Bengal Govt. has chosen to boycott the Act and decided to bring in its own set of law after two long years.

RERA came into action primarily to safeguard buyers’ interest and to save the country’s economy from the major harm caused by unregulated and unaccounted cash circulation from the second highest GDP contributing sector- Real Estate. The Act also was made to have a close track on the integrity parameter of the stakeholders.

Additionally, the recent amendment of the Insolvency and Bankruptcy Code (IBC) has further reinforced buyers’ authority and placed them on the same page with institutional leaders, in case the builder seeks for insolvency.

Still, many of the state governments have chosen to stand by the age-old seller- centric infrastructure, where builders used to have the lead role.

The central Act permitted states to tweak the paraphernalia barring the key provisions of the Act. Where most of the states have already established the Act, prioritizing the buyers’ protection fact; Bengal Govt. has chosen to start it from the beginning.

Yet, the state version of RERA is nothing but an inclusion of a few small, symmetrical changes in the central’s Act and it has left the builder’s body satisfied.

A couple of mention-worthy inclusions are:

  • State government holds the authority to declare under what condition/ which circumstances builders fail to deliver the projects on time.
  • West Bengal builders can use an open space inside the housing society for building flats or even they can sell it as parking lots without any institutional go-ahead.

“Government’s decision comes from an in-depth R&D. Undoubtedly, state builders will be benefited under this regime; but it would be interesting to see how the Act watches over the buyers’ interest,”- says Mahesh Somani, Chairman – National RERA Committee, National Association of Realtors, India.

-By LNN (Liyans News Network)

RERA Torches On The Basic Principles Of Realty Business

Out of 29, 13 states have notified their RERA rules. Remaining states have been asked to finish their notification within coming three months of the RERA implementation (May 01, 2017). Each of the states and UTs should have individual Regulatory Authority (RA) which will structure rules abiding by the act.
RERA has come into force to promote the sale volume of the flat real estate market of the country through a transparent and efficient practice. RERA is here to empower the buyers’ rights and interests.
                                               At a glance RERA
From the time of booking and issuing allotment letter the promoter shall be liable to provide all the facilities to the allottee–
 1. All sanctioned plans, layout plans along with specification have to be approved by the competent authority.
2. Builders have to update stage-wise progress of the project on RERA website including the provisions of civic infrastructure like water, sanitation and electricity. Booking process can be
twisted to some extent.
3.Currently the ongoing booking amount rate is 10% of the total property value. No one can ask more than this rate as advance. Make sure each phase/tower is registered.
4.The ‘agreement of sale’ is prepared at a later date.
Project needs to get registered within 3 months of the commencement by the regulatory authority.
5.The background of the promoter should be checked and cross-checked which include his previous projects details in 5 years. Current status of the on-hand projects, delay in completion, pending projects etc.
 6.A promoter can be asked for valid copy of the approvals and commencement certificate from the competent authority, site details, progress status of project, copy of approvals and commencement certificate from the competent authority for every towers and phases (even for the under-construction properties).
7.Proforma of the allotment letter, agreement for sale, and the transmission deed proposed to be signed with the allottees.
8. Make sure the agreement has the details of the number, type and the carpet area of flats for sale in the project along with the area of the private balcony or verandah areas and the exclusive open terrace areas with the apartment.
9.Make a count of the parking allotments of the project.
10.A consumer can also ask for the entire details of the contractors, architect, project engineer, if any and other persons concerned with the development of the proposed project.
                    There should be a declaration supported by an affidavit indicating–
a. The promoter should own the legal title of the land.
b. The land should be free from any obstruction.
c. Read on the timeline within the promoter stated to complete the project.
After registered with RA each builder will be provided log in ID and password to upload his project information and update step-by-step project completion quarterly along with their personal details.
Without registration no project or land can be commercially advertised.
The state RA has to spell out the rate of interest on an evasion by either the developer or the buyer. Such payments have to be ended within 45 days of it becoming due.
Within 5 years of the project deliverance if there is any discrepancy in quality or workmanships promoter will provide the apt solution without any further charges.
In case any delay in possession, promoter will have to pay EMIs of the consumer till the month of project deliverance.

RERA will make sure that buyers won’t be fooled at the hands of builders. It will ensure quality production and timely deliverance of the projects. RERA will boost up realty sale as buyers won’t have to go through whims of the promoters.

– LNN (Liyans News Network)-Visit our online property portal to avail bumper discount on your property purchase. Take full advantage of residential property sale in Kolkata for buying luxury properties with heavy price off. Go through our news updates to have a close look at the realty market on a daily basis.