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Rera Act: 14 More States In Process To Notify The Law



Rera Act: 14 more states in process to notify the law

Ongoing real estate projects need to be registered by July-end with regulator set up under this law

As many as 14 states and union territories have implemented the Real Estate (Regulation and Development) Act and another 14 states are in the process of notifying the rules, a senior government official said in New Delhi.

The ongoing real estate projects need to be registered by July-end with the regulator set up under this law, Ministry of Housing and Urban Poverty Alleviation joint secretary Rajiv Ranjan Mishra said,

“So far, 14 states and UTs have implemented this law. There are other 14 states which are in process of notifying the rules. We hope that they will do it soon,” he said on the sidelines of a realty conference organised by FICCI, Grant Thornton and Khaitan & Co.

He made it clear that this law is not a “model law” but passed by Parliament and the legislation should be implemented in letter and spirit.

The law, which aims to protect property buyers from fly by night operators, was passed by Parliament in March 2016 and the Act came into force from this month.

The states and UTs that have notified this law are Andhra Pradesh, Bihar, Gujarat, Kerala, Maharashtra, Odisha, Uttar Pradesh, Chhattisgarh, Andaman & Nicobar Islands, Chandigarh, Dadra & Nager Haveli, Daman & Diu, Delhi, and Lakshadweep.

On the ongoing projects, Mishra said these need to be registered within three months of the Act coming into effect, otherwise they will become unauthorised.

According to the provisions of this law, the ongoing projects, for which the completion certificate has not been issued, developers have to make an application to the authority for registration of projects within a period of three months from the date of commencement of this Act.

On the huge delay in ongoing projects, Anthony De Sa, Chairman RERA, Madhya Pradesh, said the authority would give reasonable time to developers to complete the projects and that would be decided on case to case basis.

He stated that the law does not provide for penalties on delays that took place in completion of projects before this Act came into force.

Additional Chief Secretary of Housing Urban Development, Punjab government, Vini Mahajan said the rules under this law cannot be beyond the Act.

Dilabag Singh Sihag, RERA Haryana Committee, said the draft rules has been issued for public consultation and a final notification would be issued soon.

The developers can sell their flats in the ongoing projects till July, the regulators clarified.

Earlier this week, Minister of Housing and Urban Poverty Alleviation M Venkaiah Naidu had written to chief ministers to soon notify the rules under the Real Estate Act. He expressed “deep concern” over reports that some states/UTs have diluted the key provisions of the Act.

Under this law, the Real Estate Regulatory Authority has to be established in each state for regulation and promotion of the real estate sector. The regulator has to ensure that property transaction takes place in a transparent manner and also protect the interest of consumers.

Apart from mandatory registration of projects and real estate agents, the law has prescribed that developers have to deposit 70 per cent of the funds collected from buyers in a separate bank account for construction of the project. This will ensure timely completion of the project.

The law also provides for penalties on developers who delay projects.

Source: Business Standard


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



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



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



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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