Developers who collect payments from home buyers without entering into a construction or sale contract are in violation of the TNRERA Act, the state property regulator has determined.
Tamil Nadu Real Estate Regulatory Authority, in a recent order noted that partial payments with “expression of interest” with a promise of refund/repayment were misleading and were intended to circumvent legal proceedings.
The complaint concerns “The Goodwood Residence” in Cenotaph Road area of Chennai, developed by Cenotaph Developers LLP and Olympia Tech Park Chennai Pvt. Ltd.
The complainant’s or buyer documentation stated that Rs 3.63 crore had been paid to developers. It was a part of a “non-binding expression of interest” for the purchase of an apartment in a housing project in 2016. A year later, the complainant/buyer decided to withdraw from the project and demanded compensation from the developer.
The developer after deduction of almost Rs 12.8 lakh returned only Rs 3.5 crore. The developer returned Rs 3.5 crore after deduction of almost Rs 12.8 lakhs as service taxes. However the complainant/buyer filed a complaint to TNRERA and demanded a refund of the amount withheld.
In statements, the developers rejected the allegations, declaring that the claim was prima facie not maintainable for want of jurisdiction.
Collected 80% amount without entering into sales agreement
TNRERA, after listening to the views of both parties, said that developers charged about 80% of the cost without entering into a sales or construction agreement. This is a clear violation of Article 13 of the RERA Act. In 2016, the developers received two cheques of Rs 95 lakhs from the complainant as “expressions of interest”. G. Saravanan, TNRERA Judge said that the receipt of the payment with the promise of compensation was intended to circumvent the legal procedure.
Furthermore, the developers failed to demonstrate that they provided taxable services to the complainants, which was registered with the tax authorities in the service for the implementation of the specified payment in relation to the project. The complainant thus is entitled to a deductible amount together with an interest rate of 10.2% in accordance with the order of the real estate regulator’s.
All allottees in Noida will now be able to request course completion certificates online. In addition, allottees in all categories can independently assess the breach of the building plan rules and pay interest or compounding fees to the Noida Authority online.
Until now, the Authority has only processed online applications of industrial and residential allottees. And to date, over 1,600 Noida allottees have applied for completion certificates through the online platform. On Tuesday, the Authority expanded its online services to all recipients, including commercial, group and institutional housing, options will be available to users from Wednesday.
Officials said there are currently only 21 requests for completion certificates due with the authority and the rest have been disposed of.
According to a representative from the Authority. “Either a completion certificate was issued, or the allottees were asked to submit pending documents to receive it. Currently, only 21 out of 1,626 applications from us are awaiting processing.”
Certificate issued with a digital signature
CEO Ritu Maheshwari said, “It can take up to 90 days to dispose of an application for issuing completion certificate. It is issued online with a digital signature and the applicant does not have to visit the office of the Noida authority.”
“Message alerts will be sent to the allottee registered mobile number at each step. Applicants who have submitted the necessary documents will be notified so that the application remains pending via text messages.”
While residential plot owners have minor formalities to obtain a certificate of completion, 30 to 35 documents must be submitted to other types of plots. These documents contain certificates for no objection from the pollution and fire department. Certificates related to elevator safety, building construction, labour cess registration and rainwater supply.
Before issuing a completion certificate, the authority will review the infringement reported by the allottee. And the original plan, which was approved before a group of planning officials, sent a team to visit the site and see if all procedures were followed.
On Monday, Nirmala Sitharaman, Finance Minister of India, announced a Rs 6 lakh crore National Monetisation Pipeline (NMP). This will unleash the value of infrastructure assets in all sectors, from power to railways and roads. NMP indicates assets and asset classes under various infrastructure ministries that will generate revenue over a period of time.
The center plans to monetize properties worth about Rs 15,000 crore. This includes several residential colonies in the country’s capital and eight ITDC hotels as part of the National Monetization Pipeline (NMP). Seven colony renovation projects were planned during the NMP period.
In the ‘urban real estate assets’ category under NMP. The government has identified revenue generation from seven colonies to be reconstructed, as well as the construction of residential / commercial properties on a 240 hectare land in Ghitorni, Delhi. Government is also planning to monetize eight hotels of ITDC through several routes.
Redevelopment of Colonies-
According to a latest document prepared by Niti Aayog, the real estate in cities has a revenue potential of about Rs 15,000 crore during the financial year 2022-25. The Ministry of Housing and Urban Affairs (MoHUA) owns and manages the land through the Land Resources and Development Office (L&DO).
In this category, the government has identified the renovation of seven General Pool Residential Accommodation (GPRA) areas in Delhi. These seven areas are located in Netaji Nagar, Naoroji Nagar, Srinivaspuri, Sarojini Nagar, Mohammadpur, Kasturba Nagar, and Tyagraj Nagar. The total estimated investment in the reconstruction of these seven colonies is about Rs 32,276 crore.
The center has also identified the construction of residential/commercial units on a 240 hectare site in Ghitorni, Delhi. The project consists of 8000 GPRA units and 3000 units for migrant construction workers. The estimated capital for this project is Rs 15,000 crore.
“The Ministry of Housing and Urban Affairs (MoHUA) owns and manages the land through the Land Resources and Development Office (L&DO), according to the Niti Aayog report.
PPP Model for redevelopment
Further the Niti Aayog report said, “The PPP model is suggested for the redevelopment of such GPRA projects cross-subsidized through the sale/lease of commercial BUAs (built-up areas).” “The proposed projects are real estate projects that involve mixed-use of vacant lots/old plots in excellent locations in Delhi-NCR. These include the development of residential and commercial office complexes in one of the most privileged areas of the city through a self-financing mechanism.
Considering the privileged location and attractive commercial potential of the project, Niti Aaayog recommended that these projects should be developed with the participation of the private sector. According to the report, this will not only improve business and operational efficiency, it also provides an initial/periodic review of the authorities / Ministry of Housing and Urban Planning.
According to the PPP-based model, the entire plot area for such projects must be transferred to an SPV owned by the authority. With the necessary change of land use, etc when necessary.
Monetization of 8 Major Hotels of ITDC
The Indian Tourism Development Corporation (ITDC) is administered by the Ministry of Tourism. The eight hotels selected for monetization are, Hotel Samrat, New Delhi; Hotel Ashok, New Delhi; Hotel Kalinga, Bhubaneshwar; Hotel Pondicherry, Puducherry; Hotel Anandpur Sahib, Rupnagar; Hotel Jammu Ashok, Jammu; Hotel Nilachal, Puri; and Hotel Ranchi, Ranchi.
“Projects which are pre-obtained by the Authority and housed in the SPV require multiple statutory clearances. The SPV then auctioned under the PPP mechanism through a transparent competitive bidding system, the report states.
The Hospitality Assets section of the report states that, “Total 8 ITDC hotel assets were considered for revenue generation/monetization in the financial year 2022 to 2025.”
“Long-term leases, sales and long-term OMT (operation, maintenance and transfer) can be explored as potential revenue-generating models that can be identified on a case-by-case basis through detailed asset-level due diligence.” the report added.
The Maharashtra town Planning Authority, City and Industrial Development Corporation (CIDCO), has begun geotagging of plots in Navi Mumbai as part of its various sales plans.
This decision will help buyers, and also a step towards the efficient digitization of land records in the scattered southeastern suburbs of India’s commercial capital. Thus, Navi Mumbai became one of the first major cities in the country to begin the process of digitizing cadastral registers, given the uncertainty of ownership and property rights. Most of the lands in India are the subject of legal disputes and might take a century for courts to resolve these cases.
Sanjay Mukherjee, VC & MD, CIDCO, said. “Land parcels geotagging helps to create a transparent mechanism and provide applicants with accurate location information and other related factors”. “By having the correct links to the database, which will be updated real-time. Also the potential for inaccuracies and deceptive information can be avoided.”
Eliminates Unauthorized Construction–
According to a report by McKinsey India, developers are also having trouble obtaining financial assistance. As they cannot offer land without a clear title as collateral for loans. Therefore, most new housing units are built on land already owned by developers or an insider who knows how to speed up the bureaucratic process of verifying ownership.
Ashok Chhajer, CMD, Arihant Superstructures said. “Land Geotagging helps in resolving several problems, including illegal construction on land, which can be tracked and stopped even before completion.” ‘Even the Panvel municipal corporation started working on it, using drones and making a map of the land parcels. It will also attract more investment from various financial institutions, including global organizations as well.”
Optimization of this process and revision of the law on land ownership should stimulate competition in construction. Competitive developers expected to increase their productivity and offer lower house prices. This also helps India’s stagnant construction market to expand significantly.
Payment Deadline Extended–
CIDCO regularly sold residential and used land under various schemes. These areas will be demarcated and fenced. Similarly, each plot will have a panel showing details such as plot area, number, node, and a barcode as well. The panel will help buyers know the exact location, boundaries, and area of the land they choose.
The Town Planning Authority sold land in accordance with the provisions of the Navi Mumbai Land Disposal (Amendment) Regulations 2008. In addition, CIDCO also decided to extend the payment deadline to three months for the first installment and 10 months for the second installment in worthy cases. This extension only applies to buyers in verified cases, together with late payment charges. 2008 Navi Mumbai Land Disposal (Amendment) Regulations have a clause to revoke the land transferred to the applicant if the tenderer is unable to pay the fee, even after renewal.
On Tuesday Yashpal Garg, CEO of Chandigarh Housing Board (CHB) issued an executive order stating that board officials would not inspect a dwelling during transfer time unless a notice of violation of the building was sent to the allottee.
Board CEO Yashpal Garg said: “Based on the significant number of inquiries during public hearings, there is a need to explain aspects regarding inspections by CHB officials during the transfer of dwelling units. In cases where building abuse / violation is not reported on the basis of the available record. The information provided by the applicant in the application form of transfer of dwelling units is used together with the declaration of the transferor and the transferee. In all these cases, the CHB does not carry out a new inspection at the time of the transfer of units.
However, he clarified: “The applicant/transferee is responsible for concealing the facts of the declaration regarding violations and irregularities, and the necessary actions are taken in accordance with the law. In addition, the transferee is liable for any construction infringements that existed at the time of the transfer or committed subsequently.”
Garg also said that in cases where reports of violations were available to CHB, declarations or affidavits of no violations are not accepted and CHB officials will again conduct an inspection.
Can apply for Joint Inspection-
The board also issued injunctions to protect the rights of innocent buyers. The executive order states. “It was observed that the transfer of the unit was in some cases permitted on the basis of affidavits. However officials found that there were subsequently some violations/irregularities. When lawsuits were filed against such irregularities, recipients/transferees felt cheated by the transferor due to erroneous affidavits, while such irregularities existed during the transfer of the housing unit. According to the CHB standard, the existing owner/tenant (transferee) is responsible for remedying violations. Otherwise it will have consequences like cancellation of transfer, etc.
To overcome this situation and protect innocent buyers, the Chandigarh Housing Board has provided an additional mechanism whereby the transferor party and the recipient can jointly request inspection from the CHB and obtain a certificate of no violation at that time. For this purpose, the transferor (current owner) can submit a joint application along with a commission of Rs 5,000 at CHB’s reception.”
Garg added that they issued similar orders on August 27, 2019, still many property dealers deceiving innocent buyers, so new orders were issued on Tuesday. “In the event of a breach of instructions of inspection of August 2019, strict measures will be taken against the CHB officers involved.”
The Maharashtra Real Estate Regulatory Authority has stated that a simple conditional permit to convert an agricultural land into non-agricultural non-urban areas without providing any infrastructure can only qualify as an ongoing project and therefore must be registered under RERA.
A permit to convert a plot of land from agricultural to non-agricultural is only the beginning of the process and ends when tehsildar registers, that all imposed conditions are met and constitutes a “completion certificate”, MahaRERA explained.
Dealing in “plotted development” outside urban areas, MahaRERA instructed a developer to immediately register a project on August 10. It was found that the conditions imposed over a nearly decade-old nod for non-agriculture (NA) use by the Raigad collector remained pending.
No Advertisement before registration-
Ajoy Mehta, MahaRERA chairperson, said, the actual nomenclature of the completion certificate means that the premises are finished and suitable for human habitation. The use of Non Agricultural land starts when tehsildar corrects that all conditions are met.
Mehta ordered the developer not to advertise, sell or approve non-agricultural bookings in a project called Amarai in Kolad for sale. Until it is registered under Section 3 of the Real Estate (Regulation and Development) Act (RERA). He also imposed a fine of Rs 50,000 for non-compliance with the provision of the law and failure to register an ongoing project. “The amenities that were promised and those listed in the NA judgment were not delivered. So, the property remains deprived of the amenities to allow a buyer to use it. Therefore, the project has no CC until the date,” said the order.
Mandatory to give Amenities stated in agreement-
Last year, the Amrai Kolad Plot Owners Welfare Association filed a complaint against Sai Developers, and others. According to their lawyer Zaman Ali, in May 2012, the Raigad district collector gave conditional NA permission to the developer to build infrastructure facilities, including roads, storm drains, sewerage, water supply and open space development within two years. Shortly after receiving permission, the developer started advertising the project, promising infrastructure services and a possession period of development costs of Rs 50,000 per plot. The complaint is that despite the payment “the project remained unfinished”.
After RERA went into effect on May 1, 2017, in October 2017, the developer announced new announcements for the remaining unsold plots offering services including the pool. But if infrastructure and services are not provided, the project will fall under RERA as an ongoing project that requires registration, the association said.
The developer, through his lawyer Tanmay Ketkar, argued that the project was completed in 2014, met all the conditions of NA and all plots were sold. So this is not an ongoing project, and the complaint is a “mala fide” harassment.
“In case of planned development, it is “imperative” that all agreed amenities should be completed, said Mehta.
Planning to invest in Yamuna Expressway? In this article we have shared some interesting facts which you should know before investing near Expressway.
Yamuna Expressway has evolved as one of the largest real estate hotspots in the last three years. It is proving to be one of the best choices for home buyers and investors. The six-lane 166 km expressway is the longest motorway in India. It has opened up a pristine area for economic development and expansion of the NCR region. For the past 1-2 years, several integrated warehouses, logistics hubs, and integrated townships have been developed here.
The Expressway has shortened travel time between Agra and New Delhi. It has unfold opportunities for industrial and urban development in the region and laid the foundation for convergence between tourism and other related industries. The Expressway stretches 166 km to Agra from Greater Noida through Aligarh and Mathura. Several projects are under development and approval of two metro routes, i.e, Noida City Center to Sector 62 and Noida City Center to Greater Noida, have led to extensive development in this zone.
With growth opportunities in mind, several leading developers are already taking advantage of the investment opportunity along the expressway. However, developments today may seem a bit slow. The new proposal for infrastructure development, including the metro, will give a new boost to the demand for residential properties.
Top 5 reasons to invest in Yamuna Expressway | Investing in Yamuna Expressway
Properties from reputed developers-
There are several housing projects along the Yamuna Expressway, built by leading developers. Gaurs, Ajnara, Skyline, Supertech, ATS, and Lotus are some of them. On average, you will find properties of different configurations in places like sectors 19, 22, 24, 25, 17A, and 22D on the expressway. Prices of affordable housing units at Yamuna Expressway starts from Rs 10 lakhs and Rs 2.25 crore for luxury projects. In the middle class category, there are several projects ranging from Rs 40 to 80 lakhs too.
Perfect Investment option-
According to a number of real estate experts, the Yamuna Expressway will become a popular place to live in the future. It will flourish once Jewar Airport is completed and metro connectivity is fully developed on this section. Jewar Airport once completed, will further increase the connectivity with Delhi and is perfect reasons to invest in Yamuna Expressway. The new infrastructure will emerge to connect the Jewar airport with Indira Gandhi International Airport. Yamuna Expressway Industrial Development Authority (YEIDA) has also revamped its master plan for 2031 to stimulate further development along the Expressway.
Yamuna Highway is an ideal place for potential real estate investments. It is one of the longest expressways with controlled access in India, directly connecting the metropolitan area of Noida with Agra thus increasing the prospects for neighboring regions. The area is witnessing a significant boom in property values due to the proposed Noida International Jewar airport. Another benefit of investing in Yamuna expressway projects is the highway runs through the main road of Yamuna. Thus it can benefit those traveling from Noida, Gaur Yamuna City, and Greater Noida.
Offers Seamless Connectivity-
The Yamuna Expressway to UP and Haryana areas and is connected to the Agra ring road. This further connects it with other regions of the NCR, such as Gurgaon, Sonipat, Manesar, Rohtak, Ghaziabad, Meerut, and Hapur. It also connects some major cities like Lucknow, Kanpur, and Gwalior shortening distances and travel times. Hence, connectivity is one of the main reasons to invest in Yamuna Expressway.
The Expressway offers a good proximity to basic amenities, such as schools, hotels, hospitals, etc. Future development on Yamuna Expressway includes the construction of an IT park, and a planned railway station. F1-track at Buddha International Circuit is another feature at Yamuna Highway. The UP government has also designated the Expressway as manufacturing hub of electronics. The Noida authorities have also planned a transport hub that will include various modes of transport, including an Inter State Bus Station and a Railway station.
Affordable Housing Hub-
Yamuna Expressway, considered an accessible location, currently filled with projects with a small number of units. However, the market share for 2 BHK units is really high compared to 1 and 3 BHK units. 1 BHK units are much smaller in size and account for about 18% of the market share. The area is dominated by 2 BHK units with 39% availability, followed by 3 BHK units with 33%. About 38% of Yamuna Expressway projects launched in the price range of Rs 3,000 to Rs 3,500 per square foot. About 18% of the projects in the price range of Rs 2,000 to 3,000 per square foot and Rs 3,500 to 4,000 square foot each. So, these are some of the reasons to invest in Yamuna Expressway.
On Friday, the Maharashtra Real Estate Regulatory Authority (MahaRERA) gave builders a six-month relaxation to complete projects. Authority has accepted the demand to apply the force majeure clause due to the second wave. This is the second time during the pandemic that the authorities have provided such assistance to developers in the state.
“All projects registered by MahaRERA for which a completion date, revised completion date or extended completion date expire April 15, 2021 or later. The validity period for such projects is extended by six months, authority said in a notification.
Further authority said it would issue revised project registration certificates and revised timelines for such projects as soon as possible. It also made it clear that the renewal will not apply to projects that were to be completed by April 15th.
The notification said that on April 13, the state government issued instructions to restrict the movement of people due to another wave of infection, adding that the wave was more deadly. The lockdowns halted the construction activities due to labor shortages and impact on the movement of building materials. A six-month period of “force majeure” has been announced from April 15 to October 14.
Other authorities should also follow same process
The order was issued to help the government control the damage caused by COVID-19. Also to ensure that the implementation of the project is not affected.
The conditions or time limits for the implementation of projects that expire at any time during the force majeure period will be automatically extended till the expiration date. However the rights of allottees will not get affected through the order. The notification said that an association of promoters had presented themselves before the authority for help in view of another disruption ravaging the industry.
Developer Niranjan Hiranadani, National president of realty industry body Naredco, said, “This is a step in the right direction and the sector hopes that other authorities besides MahaRERA will follow the same thought process and provide the same relief.”
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has decided to grant an additional nine months of registration extension for projects with first registration ending December 31, 2021 or earlier. In the NCR region this extension is of nine months and for six months in a non-NCR region.
The decision was made to remove restrictions and facilitate the development of stagnant real estate projects. This will speed up construction and help the allottees of these projects deliver their homes within a reasonable time frame.
However, the extension is subject to the authority’s close monitoring of these projects and will be granted under certain conditions.
If the project completion date is after 31 December 2021. The developer will be instructed to speed up development work and complete the project within the existing registration period. These extensions can only be granted at the request of the promoter of the project, accompanied by an affidavit. The affidavit states that the developer must complete the project during this extended registration period. Also provided that the developer presents a compelling financial plan from project financing or from own sources to complete the project.
Authorities said giving a little extra time to complete projects would help complete a series of projects that would result in a large number of pending home buyers being handed over for delivery.
Sign MOU if developer is not in state to complete project
Before taking any decision on the promoter request, the authority first checks the physical progress of the project. The project must be verified through its technical division to ensure the authenticity of the promoter’s commitment in this regard.
In the event, the promoter is unable to complete the project during the additional extended registration period. Then he needs to enter into an agreement or memorandum of understanding (MOU) with the Association of Allottees (AOA). In addition, he also needs to contact the authorities for additional time to complete the project in accordance with the terms agreed between AOA and the developer.
The authority, after receiving such a joint request from the developer and the AOA, makes an appropriate decision to allow the developer to complete the rest of the project.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has banned the sale of a total of 644 residential projects in Maharashtra. Several units were stopped due to late completion and delivery, with Pune accounting for almost 30%.
According to data released by MahaRERA, most of the blacklisted project developers are smaller players with less than 100 units per project. Apart from some projects of well-known developers in the region most of them belong to small developers. Approximately 85% of blacklisted projects had an average of 70 units in each project. Such a blacklisting means that the project cannot be advertised, marketed or sold in any condition.
The list also consists some of the Maharashtra Housing and Area Development Authority (MHADA) projects promoted by the state government.
Most apartments are sold!
Anarock real estate analysts report that 80% of the apartments in 644 projects have already been sold. According to MahaRERA, 16% of the projects were to be completed in 2017 and the rest were to be completed in 2018. Due to market size, Mumbai topped the list with 274 blacklisted projects, or about 43% of the total, followed by Pune with 29%. The rest are in smaller markets like Aurangabad, Nagpur, Kolhapur, Nashik, and others.
A developer in the region states the condition of small or new developers. He said “ the smaller developers are increasingly struggling with RERA compliance, e.g. proof of capital and due diligence for land. Banks, NBFCs and housing finance companies are often reluctant to lend capital to such agents for fear of low or inadequate securitization.
Anuj Puri, the chairman of Anarock, said, this move by MahaRERA is a strong signal for disobedient developers who are constantly delaying projects. Homebuyers have been waiting to take over home ownership since 2017 or 2018. In the Mumbai Metropolitan Region (MMR) there are at least 496 projects (launched in 2014 or earlier) that have been delayed or stalled so far, while in Pune almost 171 projects have been delayed or stopped.