1. Big relief to UP builders, Yogi Adityanath government redefines ongoing projects

Big relief to UP builders, Yogi Adityanath government redefines ongoing projects

Clauses related to penalties for non-compliance by developers have also been diluted

By: and | Lucknow/new Delhi | Updated: August 1, 2017 3:04 PM
UP builders, Yogi Adityanath government, Uttar Pradesh government, real estate rules, RERA, RERA guidelines, Noida Extension Flat Owners Association, Yamuna Expressway industrial area Clauses related to penalties for non-compliance by developers have also been diluted.

Deepa Jainani & Surbhi Prasad

The Uttar Pradesh government’s real estate rules have amended the definition of an “ongoing project”, allowing a builder to be exempt from the purview of Real Estate Regulation Act (RERA) even if he has just applied for a licence or received a part-completion certificate before the Act was notified.This effectively means that those builders who do not complete projects and leave home buyers in the lurch cannot be penalised as per RERA guidelines.

Clauses related to penalties for non-compliance by developers have also been diluted. While Central RERA recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the estimated cost of the real estate project, or both, UP has included compounding of offence clause to avoid imprisonment and even the compounding has been limited to ‘maximum 10% of the estimated cost of the real estate project’, which means it may even be zero in some cases.
This is likely to encourage corruption as quantum of money to be paid will be at the discretion of the authority. As was given in the central draft rules and also provided in the final rules, this should be rolled back to match the Centre’s rule on ‘compounding’,” says Abhay Upadhyay national convener of Fight for RERA. As on date, around 834 developers have registered with the portal.

“UP has decided to keep all those projects outside the purview of RERA which have been either issued, or have applied for occupancy certificates. The main problem here is that of delayed possession. Projects that were launched 7-10 years back are still not completed. And because of this clause they will get an escape route. Home buyers who are battling these builders will find no redressal under RERA,” said Indresh Gupta, co-founder, Noida Extension Flat Owners’ Association.

According to industry officials, in Noida alone, around 50 under-construction group housing projects have been delayed by three to four years due to the slowdown in the realty sector. This has affected around one lakh buyers who had invested in projects that were to be delivered by 2012.

In Greater Noida, around 3 lakh home buyers in 63 delayed realty projects are yet to get possession of flats that were to be delivered from 2012. Similarly, 13 realty projects in the Yamuna Expressway industrial area, along the 165-km Yamuna Expressway connecting Greater Noida with Agra, are yet to be delivered.

“By exempting projects for which an application for completion or occupation certificate (CC/OC) has been made on or before the rules are notified, UP has taken a lenient attitude towards builders. A CC is a certificate given by the competent authority that the real estate project has been developed according to the sanctioned plan, layout and specifications as approved by the authority. An OC is a certificate issued by the competent authority to the developer permitting buyers to move into their apartments.

The Uttar Pradesh government’s decision to continue with the watered-down version of RERA rules that were notified by the Samajwadi Party government in October last year, has come as a major setback to home buyers in the state. These diluted rules are far more lenient to builders than those in the central RERA or Real Estate (Regulation and Development) Act, 2016 and therefore make it easier for them to evade the regulator.

Upadhyay of Fight for RERA said the UP real estate rules are a huge let down. “The state rules have redefined ‘ongoing projects’ in direct contradiction to central Act provisions and it excludes many ongoing projects from the RERA ambit as a favour to the builders. If not withdrawn, it will ensure the failure of RERA in providing justice to home buyers of any ongoing project,” he said.

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  1. R
    Rohit Tripathi
    Aug 7, 2017 at 5:21 pm
    So it is official that pimps, bootleggers. I muscle men, criminals etc will have their way no matter which party is in power. Loose money is the thread which binds us all.
    Reply
    1. L
      Lokesh Jha
      Aug 6, 2017 at 10:21 am
      Pathetic
      Reply
      1. S
        sp bishnoi
        Aug 6, 2017 at 10:00 am
        this is clear massage by up govt that all leaders and parties are same .their is no differance .we must go to court their is only option .
        Reply
        1. Harinder Singh
          Aug 5, 2017 at 6:55 pm
          The literal meaning of Completion Certificate (CC) is that the project is complete in all respected with all facilities in place and are as per rule, Sanctioned plan.
          Reply
          1. V
            Vinod Kumar Sharma
            Aug 3, 2017 at 9:13 am
            They went back on their poll promise of RERA. BJP has deceived their voters sided with most corrupt fraud builders.Shame on you UP govt. which has two faces.You have given us a shock.Be ready for shock in 2019.How can you side with builders who took 95 to 100 money years but no houses to helpless buyers.BJP is no diffent from other corrupt politicians. This can only happen in India inBJP raj. You will be defeated in court.
            Reply
            1. Ravi Ahuja
              Aug 2, 2017 at 11:04 am
              All flat buyers to do dharma at India Gate .We all have to become Kejriwal.
              Reply
              1. T
                Tarique Anwar
                Aug 1, 2017 at 10:02 pm
                By making this kind of rule UP govt motivate builder to cheated buyers. We have lot of hope from UP CM but all hope gone in vain .. We have option rather raised our voice on ROAD...
                Reply
                1. S
                  Sharad
                  Aug 1, 2017 at 7:21 pm
                  This not relief for builders, It is said method of collecting party funds They also don't care about laks of people who have invested their hard earned money in these builder projects and still fighting with builders for possession of their homes/flats But still buildings are under contruction from a no. of years There seems to be no hope for these helpless buyers Lets see when will govt wake up and will really do something for them so they can get their flats/homes from these fraud builders
                  Reply
                  1. S
                    sudheer dhawan
                    Aug 2, 2017 at 1:39 pm
                    We have filed case in Rera and paid 1000 as their filing charge hoping that gov will do.we should do thorough up-rera and send copy to Cm house Lucknow and Rera office in hazratgung Lucknow and protest in front of cm awas
                    Reply
                  2. R
                    Rajesh Raman
                    Aug 1, 2017 at 6:44 pm
                    Ye public hai sab jaanti hai... If it is true then you cant fool on peple.
                    Reply
                    1. R
                      Rahul Varshney
                      Aug 1, 2017 at 6:10 pm
                      This is pathetic. Builders mafia has been antagonising the buyers by not completing on time increasing their personal wealth and the middle class suffers all the way in this regime. This is good governance in present times. You earn more than you pay more taxes and lose everywhere by subsidising the inefficiency of governmental setup. May that be electricity, property, infrastructure, medical facilities, approvals etc. Look at the roads, cleanliness, traffic, greenery or facilities in any partly completed, under construction society and the number of years the residents have endured that but Noida authority is hand in glove with builders and keep finding reason to help them not do their bit. Lost faith in the system and governance.
                      Reply
                      1. A
                        aggrieved home buyer
                        Aug 1, 2017 at 5:22 pm
                        If this rule has been passed, it will be big setback for UP homeyers, yogi government was our last hope. People will be left with no choice but, to come at roads and make hue and cry. People's sentiment will only detoriate in government with these type of moves. Government should re look into its decision.
                        Reply
                        1. Anil Verma
                          Aug 1, 2017 at 4:34 pm
                          This is the huge setback for home buyers who are hoping to get their flats in this yogi government. Builders have already looted the money and now government is also helping them. This is embarembarrassing.
                          Reply
                          1. Adil U
                            Aug 1, 2017 at 4:26 pm
                            Every single BJP ruled state has diluted RERA. Lo Bhai ho gaya 'Baba ji ka thullu'
                            Reply
                            1. P
                              Praveen
                              Aug 1, 2017 at 4:25 pm
                              Modiji's call for Corruption-Quit India falls flat on its face.The systemic dilution in the rules must have been done through quid pro quo as u need crores to buy MPs n MLAs.
                              Reply
                              1. Adil U
                                Aug 1, 2017 at 4:20 pm
                                Hmmmm to ise kahte hain "Baba ji ka thullu..."
                                Reply
                                1. A
                                  Allen
                                  Aug 1, 2017 at 3:34 pm
                                  He seems to be loosening his grip. Illegal butcher houses have sprung up again, chicken is freely available in the vegetable market near Pari Chowk in Greater Noida.
                                  Reply
                                  1. T
                                    T K Basu
                                    Aug 1, 2017 at 3:21 pm
                                    I think comments given by buyer of flats in various projects in UP are painful. Buyers will be harassed and will feel cheated by Yogi govt. This relaxation will prove very costly to BJP in the long run. Centre has not diluted RERA and how come BJPgovt in UP which is doing so good in every field can do this? There is still time. Change the decision for the sake buyers.
                                    Reply
                                    1. N
                                      Nishant SIngh
                                      Aug 1, 2017 at 3:13 pm
                                      Yogi Adityanath.....kursi de...or jesa jogi tha wahi banja ....tujhse weese v kursi samhali ni jaa rahi he ..modi.....terko v duba dega ye yogi...
                                      Reply
                                      1. N
                                        Nishant SIngh
                                        Aug 1, 2017 at 3:10 pm
                                        YOGI Adityanath.....CM banke Janta ko sahuliyat or power dene ki jagah unke haq ko hi mar rahe ho.....sahi baat he janta kya degi vote ...builder kya denge note....n vote to note se kharid hi loge...UP k itihas me ye sabse durbhagyapurna he ki janta k khoon ko har tarike se chussaaa jaa raha he ..
                                        Reply
                                        1. H
                                          Hira Arora
                                          Aug 1, 2017 at 3:04 pm
                                          Hopefully it will be have same clause's as that of Central RERA. Yogi will not turned Bhogi as many times he expressed his unhappiness on delayed delivery of units to buyers. Otherwise it may be challenged in Court by Consumers Association's
                                          Reply
                                          1. Adil U
                                            Aug 1, 2017 at 5:03 pm
                                            Sir, read the article, It has already changed.
                                            Reply
                                          2. U
                                            umesh
                                            Aug 1, 2017 at 2:26 pm
                                            Disappointed rather shattered by this decision. This proves that this government does care about people . Like the previous other goverment it has sided the swindllers and now are showing their true colours.This was an appropriate time for the authority to take corretive step and they have missed it. People will now think twice before investing here.
                                            Reply
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