Builders take Centre to court, say RERA illegal

NEW DELHI: A bunch of builders have approached two high courts challenging some of the key provisions in the Real Estate Regulation Act (RERA) including binging all “ongoing” projects under regulation and penalties for failure to register such projects. They have pleaded that these provisions have retrospective effect since the projects were started when there was no such law and hence it’s illegal.

Earlier builders’ demand to exclude incomplete projects was turned down by the Centre saying the law was enacted to bring relief to crores of home buyers who had been waiting for their flats for years, even after making full payment. According to the law, the mandatory registration of incomplete and new projects with the regulator will have to be done by August 1, else the builders face the risk of paying penalties.

The builders have been opposing this provision amid reports that most of them are cash strapped. Moreover, the law brings transparency and accountability and property developers have to give fresh timelines for completion of projects. The timelines will have to be adhered to.

While Builders and Developers Welfare Association has filed a PIL in Madhya Pradesh High Court, Swapnil Developers has challenged provisions of RERA in the Nagpur bench of Bombay High Court. These cases are coming up for hearing in the next one week.

Sources in the housing and urban affairs ministry said RERA is not a law with retrospective effect since it covers all projects, which have not got completion certificate by May 1, 2017. Secondly, the penal provisions come to effect only after the law came to existence.

Till now 22 states and seven Union Territories have got proper or interim regulators and real estate projects can be registered with them.

Builders have challenged the Centre’s right to enact the law relating to land, which is a state subject, and how submitting details of projects to the regulator would amount to infringement of right to privacy.

“The law came into force in March 2016 and there was enough time to complete the ongoing projects. The law says the builders will have to give fresh timeline while registering all projects including the ongoing ones,” a government official said.

He added that the law has been made under the relevant constitutional provisions of the Concurrent List and the ministry had even obtained opinion of the law ministry in June 2012. “The RERA does not provide for matters relating to ‘land’ or ‘local authority’. It aims to regulate the contractual obligations between the builders and buyers. It focuses on resolving disputes in the sector,” the official added.

Courtesy: realty.economictimes.indiatimes.com

Construction updates of Uttoron Project in Kestopur near Jagatpur Bazar, Kolkata.

Some recent pictures of our project Uttoron, which is loated off VIP Road, Jagatpur Bazar.

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Possession: July 2017

21 states & UTs notify RERA rules; just 2 appoint permanent regulators: Govt

NEW DELHI: A total of 21 states and union territories have notified the final rules of the real estate regulatory Act (RERA), while just two states have formed permanent RERA authorities so far, a top government official said on Wednesday.

The government expects atleast 29 states and UTs to notify their rules by the July 31 deadline.

"We hope around 29 states will notify the final RERA rules by July 31. Barring North Eastern states, as they have some land law issues, I hope all the states will at least notify RERA rules by July 31," said Rajiv Ranjan Mishra, joint secretary, ministry of housing and urban poverty alleviation.

Misra was speaking at an event organised by industry body CII here.

A total of 18 states have formed interim regulators till now. Mishra informed the government is urging states to make these interim regulators permanent.

"The idea should be to start the project registration process in states. We urge all the states to put the needed infrastructure in place as soon as possible," he said.

The joint secretary also highlighted the need to include ongoing projects under the RERA ambit.

"We should include ongoing projects under the Act. Excluding them will not be good for consumers and developers," he said.

Mishra feels the next six months will be tough for the real estate industry.

"The sector has to redesign its business model and we may see a lot of restructuring happening. However, the long-term impact of RERA will be beneficial for the industry," he said.

The Real Estate (Regulation and Development) Act, 2016, came into full force from May 1 this year, and the states had a grace period of three months to notify rules and appoint their respective regulators.

Real estate projects which don't get registered with their respective RERA till July 31 will not be allowed to sell after the deadline.

Courtesy: realty.economictimes.indiatimes.com

Director's Birthday Celebration

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Prantik is a residential project by Red Ant Realty

http://redantrealty.com/details.php?page=19

Prantik is a residential project by Red Ant Realty. This project is a single G+4 building  on around  14Kottha land. Situated in a close proximity to the heart of Kolkata and also a commuters delight. Easily accessible by road, rail. This project is a few minutes away from the other parts of Kolkata and Rahara. The main USP of the project is Rahara Bazar is few minutes walking distance from it.

Amenities & Facilities:- 24 hours water supply, Community Hall, Lift, Temple, Car parking.

Location:- Prantik is situated in Rahara, The project is well connected to BT Road,. The close proximities are-
Airport: 13km
Railway Station: 1 km
Market: 0.9 km
School: 1 km
Hospital: 1.5 km 

Possession:- Ready to move in.

5 things that will make developers RERA-ready

By: Shaveta Dua 

The Real Estate (Regulation and Development) Act, 2016 (RERA), has given India’s real estate sector a new direction but there are some teething problems being faced by developers.

To bridge the gap between the government, developers and consumers, Magicbricksorganised an event ‘Real Estate - The RERA and GST Era’ in New Delhi on June 29, 2017.

With only Madhya Pradesh and Maharashtra ready for RERA on Day 1, experts at the event deliberated on a host of issues that matter to the consumers and developers. Magicbricks lists 5 key takeaways from the event for developers.

Redesigning business

Madhya Pradesh RERA regulator, Antony De Sa, says even those states which are ready, developers are not ready. “For a large number of developers it meant filling forms, which are lengthy and cumbersome. Developers will have to redesign their allotment letters, sales deeds, brochures, advertisements and their cash-flow management to become RERA-ready.” Haryana RERA Executive director, Dilbag Singh Sihag, says that even though the state has not officially notified rules, developers are being registered after submitting an affidavit. “In Haryana, more than 15 applications have been received, out of which 8 registrations have been issued while others are in the pipeline and will be issued shortly.”

Understanding the process

KPMG National Head of real estate and construction, Neeraj Bansal, said that developers were not aware of what has to be done. “Many in the industry are thinking that there are certain forms which have to be filled and a law firm has to be hired to do it for them. There is much more to it before the form comes into the picture. Both for the government machinery and developers, the mammoth task is to understand the system,” explained Bansal. He added that an Act and rules have to systematically be applied which is a significant effort and for which continuous guidance is needed.

Tutorials from Naredco

In order to guide developers on how to go about the new law, Naredco chairman and DLF head, Rajeev Talwar, said that Naredco had been organising paid-for services to guide developers on how to be RERA-ready. “We need to change the mind-set for RERA to kick in,” he added.

Diligence to curb structural defects

Haryana’s Sihag further added that his was the only state that had a system in place wherein a developer used to give an undertaking to manage a project for a period of 5 years. “Structural defect has been defined explicitly in the state Act, thus, ruling out any confusion on what a structural defect is, at least in Haryana”. However, De Sa added, “Any builder worth his salt would not construct a poor building.”

KPMG’s Bansal said developers will have to work around this and create a process in a transparent manner. “Unlike in the past, they will now have to create a back-to-back warranty with suppliers in case a challenge comes up. Starting from the point of contracting to execution and finally handing over, documentation has to be clearly spelled out. Workmanship is a loose term – is it tiles, paints, electrical wiring or something else? A developer will have to clearly spell out his liabilities in a transparent manner.”

Khaitan and Co Partner, Sudip Mullick, added that for structural defect for up to 5 years, a builder can appropriately cover himself through insurance. “The concern for the builders would be workmanship or quality of services because workmanship is a vague term and the applicability of workmanship for 5 years may pose a considerable challenge to the builder.”

Make registration number a marketing tool

De Sa went a step ahead to say that consumers should demand RERA registration number from developers before booking a unit. “In fact, developers could use this number as a marketing tool to push their projects and forums such as Magicbricks, can play a crucial role in creating awareness and advertise only such projects”. Talwar added that there should be drives by RERA authorities to educate all stakeholders.

Courtesy: realty.economictimes.indiatimes.com

Prantik residential project by Red Ant Realty.

http://redantrealty.com/details.php?page=19

Prantik is a residential project by Red Ant Realty. This project is a single G+4 building  on around  14Kottha land. Situated in a close proximity to the heart of Kolkata and also a commuters delight. Easily accessible by road, rail. This project is a few minutes away from the other parts of Kolkata and Rahara. The main USP of the project is Rahara Bazar is few minutes walking distance from it.

Amenities & Facilities:- 24 hours water supply, Car parking.

Location:- Prantik is situated in Rahara, The project is well connected to BT Road,. The close proximities are-
Airport: 13km
Railway Station: 1 km
Market: 0.9 km
School: 1 km
Hospital: 1.5 km

Possession:- Ready to move in.