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Is your property possession delayed? Here’s what you can do

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Is your property possession delayed? Here’s what you can do

A home buyer, who fails to get the possession of his property on time, can resort to several provisions under India’s civil, criminal and consumer laws, to take action against the developer

A property buyer, who invests his hard-earned money in buying a home and does not get its possession on time, not only fails to get a roof over his/her head but also ends up losing money, in the form of EMIs on the home loan and paying for a rented accommodation. Moreover, the buyer may also have to wage a long and tedious legal battle to get the justice.

Legal remedies

If possession is not delivered on time, a purchaser can send a notice to the builder, claiming refund of the amounts paid along with interest and/or damages. “The buyer can also file a consumer complaint for ‘deficiency in service’ as defined under the Consumer Protection Act, 1986 against the builder,” suggests Ameet Hariani, managing partner, Hariani & Co

.“The flat purchaser is required to file a written complaint before the appropriate consumer dispute redressal forum set up under the act, depending on the value of the property, or the amount of damage he has suffered. Any dispute over Rs 20 lakhs can be directly filed before the State Commission and any dispute over Rs 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than Rs 20 lakhs has to be filed in the District Commission,” Hariani explains.

Recently, Unitech was penalized Rs 3 crore by the National Consumer Dispute Redressal Commission, for delay in giving possession of its flats. In another case, in Greater Noida, more than 300 flat buyers staged a protest against a builder, for delay in giving possession. A few months ago, a developer in Mumbai was asked to compensate buyers for delay in possession.

Experts point out that a purchaser can also file a regular suit before a court of competent jurisdiction, for damages or specific performance, under the Indian Contract Act, 1872.  If there is fraud involved–for example, if the builder knew from the beginning that he would not be able to deliver possession within the stipulated time and by some misrepresentation, induced the purchaser to book the flat – civil and criminal proceedings can be initiated.

Type of damage and relief the complainant can get through legal course

According to Hariani, the purchaser/ complainant can get inter alia the following reliefs:

Claim the money required to buy alternate accommodation at the ongoing market value in the respective area. The purchaser can also claim the money given to the builder.

Claim interest on the payment made till date.

If the purchaser/ complainant is buying the property for personal use, he can file a complaint seeking relief in the Consumer Dispute Redressal Commission.

If the purchaser/ complainant is sure to get possession of the flat in a few months or years, he can claim compensation for the money that he will spend as rent on an alternate accommodation. This will be applicable if he is a first-time home purchaser, or if his building is being redeveloped.

The purchaser can claim damages for loss of opportunity caused to the purchaser, had he invested his money elsewhere.Before signing any contract, buyers should read all the points, including the disclaimers and check the builder’ financial credibility.

builder financial credibility

SOURCE:Housing

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Regulations

Under the PM Awas Yojana Centre Increases Carpet Area Of Middle Income Group Houses

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Under the PM Awas Yojana Centre Increases Carpet Area Of Middle Income Group Houses

On Thursday, a proposal to increase the carpet area of houses eligible for interest subsidy under the credit-linked subsidy scheme for the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana (Urban) was cleared by the Union cabinet chaired by Prime Minister Narendra Modi.

After the cabinet meeting, justice minister Ravi Shankar Prasad told reporters that from now on the carpet area of an MIG-I will be increased from 90 sq mts to up to 120 sq mts and for MIG-II category it will be from 110 sq mts to up to 150 sq mts.

Prasad further added, that the move will give buyers in MIG category a wider choice in developers’ projects and boost the sale of ready flats in the affordable housing segment.

A government statement said, “The limit of 120 square metres and 150 square metres is seen as a reasonable enhancement and would cater to the market generally scouted by the MIG belonging to the two income categories specified in the scheme”.

The credit-linked subsidy scheme (CLSS) for MIG is a pioneering step to empower the middle income group to get the benefits of an interest subsidy scheme.

Jaxay Shah, CREDAI’s President said, “Housing for All by 2022 has taken a huge leap forward by the increase in the unit size of MIG Houses under Credit Linked Subsidy Scheme. The average middle class would now be able to afford bigger and better quality homes than before in smaller towns and cities”.

The CLSS for middle income group covers two income segments, Rs 600,001 to Rs 1,200,000 for MIG-I and Rs 1,200,001 to Rs 1,800,000 for MIG-II per annum. In the MIG-1, an interest subsidy of 4% has been provided for loan amounts up to Rs 9 lakh, while in MIG-2, an interest subsidy of 3% has been provided for loan amount of Rs 12 lakh.

According to the government statement, “The interest subsidy will be calculated at 9% NPV (Net Present Value) over a maximum loan tenure of 20 years or the actual tenure, whichever is lesser. Housing loans above Rs 9 lakh and Rs 12 lakh will be at non-subsidised rates”. The CLSS for MIG would be effective up to March 31, 2019.

NAREDCO chairman Rajeev Talwar and president Niranjan Hiranandani both agreed that this move would help in meeting the aspiration of millions of MIG home buyers.

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Pune Smart City Targets Rs 100 Crore Grant From World Bank

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Pune Smart City Targets Rs 100 Crore Grant From World Bank

On the basis of designing performance-based programmes for smart city, the Pune Smart City Development Corporation Limited (PSCDCL) is eyeing for Rs 100-crore grant from the World Bank. The central government has set criteria to give out money which includes smart city projects their progress and execution. However, PSCDCL is losing out on the progress criterion as its launched projects are moving at a very slow speed.

Rajendra Jagtap, CEO PSCDCL, said, “We have decided to take part in the fast-track round to get grants for Pune’s smart city projects. There are three categories, which we need to fulfil. Except for some problems faced in the execution of projects and their progress, we are sure we are fulfilling all the mentioned criteria. The World Bank will be giving Rs 100 crore for every city in every state that fulfils the criteria. We are quite ahead in Maharashtra, compared to other cities in the state. So, we are confident of getting Rs 100 crore. Before I took charge as the CEO, there was a delay in floating tenders for the Smart City company. Therefore, there has been a little delay in execution and progress of the projects.”

“Owing to people’s protests against some projects, we faced a problem in starting and executing projects. The Aundh area street design project is one such example. Now, we have decided on people’s participation before starting projects in their area,” said senior PSCDCL official explaining reasons for a delay.

The 14 smart city projects that have kicked off are:

  • Livelihood through The Lighthouses of Pune;
  • Slum rehabilitation of Dr Babasaheb Ambedkar vasahat Aundh;
  • Street and pedestrian walkway;
  • Central command and control centre for public transport;
  • Vehicle health monitoring;
  • Passenger information through mobile app and website;
  • City common mobility card;
  • Traffic demand modelling project;
  • Pune maximum solar city;
  • Plastic bottle recycling project;
  • Smart lighting;
  • 100 percent grievance redressal system for water with the help of PMC care;
  • Quantified cities movement;
  • The garbage vehicle monitoring management system.

Out of these 14 projects, The Lighthouses of Pune, PMC care, plastic bottles recycling project, mobile application project and the central command and control centre for public transport project have been completed. Nonetheless, the remaining projects are still underway even after starting more than a year ago.

A screening framework has been prepared, comprising three sections — Part A, B and C in order to facilitate the screening of states and short listing of SPVs which are interested in participating in the Indian Smart Cities Programme. SPVs should be presented on November 30 after all information is furnished by the state. December 11 is the last date of receiving the submission from the state/union territory.

Also Read: Almost 52 Percent Of Residential Units Registered Under MahaRERA Remain Unsold: Report

 

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RERA To Ensure Completion Of Realty Projects

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Cluster Redevelopment In Thane City Gets Approved By Maharashtra CM

RERA’s senior counsel, Darius Khambata said on Monday that the overriding principle of RERA Act is to ensure completion of a project. He explained that the original promoter does not his loose the right over the project and unsold flats, even if its registration is revoked for breach caused by him and the RERA authority tasks another builder to complete work, as a contractor.

Khambata has been appointed as amicus curiae (friend of the court) to support Bombay HC before a bench of Justices Naresh Patil and R G Ketkar to whom daylong submissions were made on a constitutional challenge filed by builders to RERA provisions.

Enforced on May 1, the builder had argued that RERA Act is unduly penal and violates their fundamental right to trade, in property, and by its retroactive application on pending projects illegally impairs old contractual obligations. RERA allows developers at a chance at redemption by giving fresh timelines at the time of registration to complete pending projects.

Khambata stated, “There are sufficient safeguards that protect a promoter if there is a bona fide stay on a project,” pointing to sections 8 and 37 that allow the promoter to be appointed a contractor to complete a project even if registration of a project is revoked over defaults. The revocation can only cease the sale of flats and not meddle with any other promoter rights just because his obligation to the building is taken away.

Khambata said the Act was constitutional and reasonable. What, however, should “be struck down as unconstitutional” is the provision that allows an “additional chief secretary or member of Indian Legal Services” to be appointed as a `judicial member’ on the RERA appellate tribunal. The judicial member has to mean a judge or a person qualified to be a judge, something the builders also said.

Khambata submitted that there is no acquisition or expropriation of the builder’s right to the project and refuting submissions made earlier by a builder’s lawyer.

Also Read: CREDAI New India Summit

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