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Officials not using Rera rules strictly: Homebuyers to govt


NEW DELHI: Amid indications of govt planning


in RERA law,


, at a meeting called by housing ministry, have flagged how

regulatory authorities

have not yet used the provisions of the central Act “strictly”. They are rather indiscriminately sanctioning extension of deadlines for

housing projects

and registering them, following mechanical process without verifying the details submitted by builders.

People’s Collective Efforts (FPCE), which campaigned for enactment of real estate regulation law (RERA), has flagged to the ministry how regulatory authorities have not yet used the provisions of the central Act fully and hence the deficiencies in the law are “still unknown”. Hence, any plan to amend the law will be premature, it has said. It has shared proof of functioning by some of the regulators, which are contrary to the law.
As per law, real estate regulatory authorities or RERA cannot give extensions for registration of projects for more than one year under normal circumstances. The builders are bound to complete projects within the validity period of registration. The Act specifies that the authority “may in reasonable circumstances, without default on the part of the promoter, based on the facts of each case, and for reasons to be recorded in writing, extend the registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of one year.”
TOI has learnt that Forum for People’s Collective Efforts (FPCE), which campaigned for enactment of RERA, gave details of how extensions have been approved in Karnataka without any justification. “In one case, the original completion time as per RERA registration was July 2020. The deadline was extended by nine months due to Covid-19 impact. Last December, the registration was extended till May this year. Despite so many extensions and after almost three years, work is still in progress without any sign of completion, nor has any serious action been taken against this project by the authorities. This was shared with the ministry in the meeting,” said a source.

Citing another example, the PCCF submitted how a major developer in Noida has submitted to UP RERA that the building plan is valid for five years from June 2023, but as per RERA the declared date of completion is Feb 28, 2030. It shared the proof of how the facilities and amenities mentioned in the developer’s website and in the RERA website are different. The Draft Builder Buyer Agreement is not available either on promoter’s or RERA website.
“We have given documentary evidence of how most of the RERA authorities have not uploaded their annual reports on websites, which is key for buyers to find the details of registered projects and whether these are getting completed in the given frame or given extensions. The law gives ample power to regulators to take action and protect the interest of homebuyers. Until and unless they exercise the power, how can we conclude that the law is not effective and we need to amend it?” asked Abhay Upadhyay, president of FPCE and member of the central advisory council for RERA.

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