Bad news for property buyers, Haryana yet to set up RERA authority

Published: October 6, 2017 5:53 AM

Two months after the Real Estate Regulation and Development Act (RERA) came into effect, the Haryana government is yet to set up a permanent RERA authority and create a website facilitating the regulation.

rera, rera in haryana, haryana rera authorityEven though the state notified the rules on July 28, an interim authority was registering projects under the draft rules which is still continuing.

By- Surbhi Prasad

Two months after the Real Estate Regulation and Development Act (RERA) came into effect, the Haryana government is yet to set up a permanent RERA authority and create a website facilitating the regulation.

Even though the state notified the rules on July 28, an interim authority was registering projects under the draft rules which is still continuing. “The website cannot be launched unless the authority is in place. The RERA authority will look after the format and content of the website,” an official said.

Sources say the online portal may further take 2-3 months to become operational.

The Haryana RERA committee is also yet to take a call on the penalties to developers in the state for non-compliance and advertising their projects without registration. In July, the Haryana RERA committee had sent over 20 show-cause notices to various real estate developers in the state for non-compliance and advertising their projects without registration.

“We have sent these notices under Section 3 of RERA and the process of hearing is going on to fix the accountability. We have to take a call on the extent of the penalty in such cases,” a senior state government official said.

As per the Act, Section 3 (1) specifies that “no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building… in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act.”

According to Section 59 of the Act, the violations can lead to penalties of up to 10% of the project cost.

Meanwhile, the registration of projects under Haryana’s Real Estate (Regulation and Development) Act has been going on at a slow pace. “The committee has so far received 500 applications for project registration and out of these, around 264 projects have already been registered so far,” a senior state government official said.

Homebuyers are still clueless about how and where to register their complaints under the Act. The state government has simply undermined the whole objective of the law that seeks to protect the interests of homebuyers, Gurgaon-based homebuyer Gaurav Prakash said.

The state government has also been facing severe criticism from homebuyers for “diluting the central law by changing the definition of ongoing projects”, leaving most residential projects outside the purview of the Act.

The state has allowed a builder to be exempt from the purview of RERA even if he had applied for a licence, or received a part completion certificate, before the Act is notified. This means builders who do not complete projects and leave homebuyers in the lurch cannot be penalised as per RERA guidelines. By exempting projects for which an application for completion or occupation certificate (CC/OC) has been made on or before the rules are notified, Haryana has taken a lenient attitude towards builders.

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