Wednesday 30th November 2016
RERA Rules in Delhi Finally Finalized!
After a long hibernation, RERA rules have finally been formulated in Delhi. The rules have specially been designed to serve the buyers at their best. The Ministry of Urban Development headed by Venkaiah Naidu approved the real estate general Rules and Rules for the agreement for sale for the National Capital Territory of Delhi, after consultations with the Delhi government, the three municipal corporations of Delhi, the Delhi Development Authority and other stakeholders.
The position for interim regulatory authority for Delhi has been given to Mr. Udai Pratap, the vice-chairman of DDA (Delhi Development Authority). He would be responsible in dispensing preliminary actions like setting up website and putting institutional mechanisms in place to ensure smooth and timely functioning of RERA.
The following Rules have been formulated:
1. On-Going Projects: UP Rules defines On-Going Projects as the ones where development is going on and completion certificates have not yet been issued. Exceptions to On-Going projects are projects which are handled and maintained by local authorities like RWAs. Such projects have been excluded because in many cases builders refuse to run the maintenance of projects and RWAs take over the maintenance part. Other projects that are excluded from the ambit of On-Going Projects are those where all development work has been completed with sales deed of 60 per cent of the value of the project been executed or where all development work has been finished and completion certificate has been applied for.
2.Refund: Any refund including appropriate interest and compensation is payable to the allottees within 45 days from the due date of such refund. This step comes as a blessing for homebuyers who have waited for years to get the possession or refund.
3.Online: promoter is mandated to upload project information on the website and he will also need to upload updates of the project on the website within 7 days from the expiry of each quarter. This will make all the information that the buyer ever needed just one click away, which earlier they had to toil hard to gather.
4.Registration: the Rules have laid down that the Real Estate Agents must be registered with the regulatory authority. This will restrict any unqualified and incompetent person to be a broker or agent.
At a time when Uttar Pradesh and Gujarat’s government were highlighted for diluting the RERA rules, formulation of Delhi’s RERA rules will take the controversial cover off these states. Gujarat decided to keep on-going projects outside the ambit of RERA and UP kept the definition of on-going projects unclear, which is why they were in the limelight. Activists however, believe that the Delhi RERA Rules are diluted. According to the Rules, promoters need to give details only of those projects which have been disposed of and the details of pending projects need not be furnished. This, however is in contradiction to section 4 (2)(b) of RERA, according to which the details of pending cases must also be furnished. “This provision will curb transparency and Consumers will not be able to take informed decisions,” says Abhay Upadhyay, national convenor of the Fight for RERA group. Such dilution would definitely not be welcomed by people who are expecting the state Rules to align with the Center’s Rules so that the main objective of promoting buyers’ interests is achieved.