Remedie ies for Home Buyer Under RERA CA Mahadev Birla Mahadev - PowerPoint PPT Presentation

Remedie ies for Home Buyer Under RERA CA Mahadev Birla Mahadev Birla & Associates Chartered Accountants +91 97123 78191 md.birla@gmail.com

Index 1. Why RERA? 2. Key Terminology ? 3. How Home Buyer Interest is protected ? 4. What are the Rights of allottee? 5. What defaults of Promoter and remedies to allottee? 6. Complaint procedure/Authority/Forms 7. Status of Complaints

Why RERA ? Some Key Objects of the RERA are:-- • Regulate and promote the real estate sector • Ensure Sale of Real Estate Project in transparent manner • Protect the Interest of consumer • Establish the Appellate Tribunal Who is actual Beneficiary of RERA ? Consumer ? In preamble of RERA word ‘consumer’ is used however the same is not described in RERA. This law is consumer/customer based law.

Home Buyer ? Under RERA the home buyer is defined as “allottee” As per section 2(d) “ allottee” in relation to a real estate project , means the person to whom a plot, apartment or building as the case may be , has been allotted, sold (whether as freehold or leasehold) or otherwise transferred by the promoter, and includes the person who subsequently acquire the said allotment through sale, transfer or otherwise but does not include a person to whom such plot , apartment or building, as the case may be, is given on rent; Real estate Project - Section -2(zn) Person – Section-2(zg)- The same as defined in Income Tax Act etc. Allotment , sold or other wise transfer ?- Not defined • Allottee includes:- 1. First Buyers who directly buy the plot , apartment or building from promoter 2. Second buyer who buy the plot, apartment or building from first buyer

Home Buyer ? Is Lessee is comes under the definition of ‘allottee ’ (Lavasa Corporation’s Brookview project at Lavasa City in Dasave in Pune) Is person who gets new flat (in replace of existing flat) under conversion of existing building into new apartment, plot or building is covered under RERA ? – No Is there any difference between the rights of above two allottees?

How the Interest of Home Buyer/Customer is protected under RERA ? • No Sale without Registration of Real Estate Project Under RERA- Section 3 • Undertaking by Promoter for timely completion and clear title of property/Land- Section 4(l)(B) and 4(l)(C) • Restriction on utilisation of project money – Section 4(l)(D) • Availability of Project information like Booking Status , Details of registrations, details of approval taken and pending, Status of Project for public view- Section 11 (1)

How the Interest of Home Buyer/Customer is protected under RERA ? • Maintenance of society at reasonable price till association of allottee is formed.-Section 11(4)(d) is it really beneficially for buyers as it was earlier maintained for two years • Payment of outgoing charges of the project till the physical possession is handed over 11(4)(g) • Non cancellation of allotment unless the same is as per agreement to sale – Section 11(5)

How the Interest of Home Buyer/Customer is protected under RERA ? • Non-acceptance of money in excess of 10% of cost price of Plot or apartment unless agreement to sale is executed- Section 13 • No alteration or addition in the sanction plan, layout plan and specification without prior approval of 2/3 allottee. Section 14(2)(i) and 14(2)(ii) • No Transfer of Rights and liability in project by promoter without consent of 2/3 allottee- Section 15 • Execution of conveyance deed in favour of allottee /common area to association of allottee and handover the physical possession of the plot, building or apartment as the case may be and the common area to association of allottee within specified period as provided under Local Law or within period of 3 months from date of issue of occupancy certificate/completion certificate/BU permission- Section 17(1)

Rights of allottees • Entitle to obtain information relating to sanction plans, layout plans along with specifications approved by the competent authority- Section 19(1) • Entitle to know stage wise time schedule of completion of project including water, sanitation, electricity and other amenities and services as per Agreement for Sale – Section 19(2) • Entitle for Possession of apartment , plot or building as per time given in declaration given u/s 4(2)(l)(c) – Section 19(3)

Rights of allottees • Entitle to claim the refund of amount paid along with interest and compensation in the manner as provided under this Act- Section 19(4) • Entitle to have the necessary documents and plans and including that of common area , after handing over the physical possession of the apartment, plot or building as the case may be , by promoter.- Section 19(5) • Allottee and promoter can mutually reduce the share in expenses and interest on delayed payment- Section 19 (6), 19(7),19(8)

Remedies available to allottees Section Defaults of promoter Remedies to allottees 11 (5) Cancellation of allotment-Unilateral and without sufficient cause Allottee can approach to Authority 12 Loss or damage sustain by any person due to false/incorrect -> Compensation by promoter in the statement/information contain in the notice advertisement or manner as provided under the Act prospectus, or on the basis of any model apartment -> Refund of entire amount along with interest, if person want to withdraw from proposed project 14(3) Structural and other defect in workmanship, quality or provision -> Rectification of such defects of service or other obligations as per agreement to sale within a without further charges, within 30 period of 5 years* from the date of possession** days -> Compensation for non- rectification of default

Remedies available to allottees Section Defaults of promoter Remedies to allottees - If allottee wish to withdraw and 18(1) Fails to complete or is unable to give possession of an apartment, demand the refund, promoter is liable plot or building to refund the entire amount with a) - As per agreement for sale - Or ; as the case may be , duly completed by the date specified interest therein - if allottee does not intend to b) Due to discontinue of his business as a developers on account of withdraw than he will get interest for suspension or revocation of the registration every month of delay till the handing over the possession 18(2) Loss caused to allottee due to defective title of land on which project Compensation from the promoter is developed or has been developed 18(3) Fails to discharge any other obligations imposed under this Act, Compensation from promoter Rules, regulation and terms and conditions of Agreement for Sale

Remedies available to allottees • *5 Years will be applicable for individual customers separately and period will be as per individual possession. • **Here word only possession is used not physical possession while in section 4(g), 17(1) and 19(5) word physical possession is used. • *** What would be the situation when application for extension of project is submitted and the extension is approved? – Interest as per proviso to section 18(1)

Remedies available to allottees Interest:- • For the purpose of interest payable under RERA , the rate of interest shall be the contractual rate of interest as may be mutually agreed between the promoter and allottee – Rule 16 (1) • Where no contractual agreement than rate of interest shall be rate which is prevalent as per existing directive of RBI i.e. MCLR- Rule 16(2) i.e. 8.20% +2% • Period of interest will be the date of payment received by promoter till the date of full amount paid- Rule 16(3) • Any money (refund, interest or compensation) become payable by promoter shall be payable within 45 days from the date on which such refund become due-Rule 17

Complaint Procedure/Authority/Forms • Section-31 (1) – Filing of Complaints with RERA Authority- any aggrieved person may file a complaint with the Authority or the adjudicating officer as case may be for violation or contravention of the provisions of this Act or the Rules and Regulations made thereunder against any promoter, allottee or the real estate agent as the case may be. • Person for this section Is person as defined in section 2(z) and shall include the association of allottees or any voluntary consumer association registered under any law for the time being in force. • Current RERA Authority Designation Name Date of appointment Chairman Dr Amarjit Singh (Retd. IAS) 10-July-2018 Member-1 Shri Prahladbhai J Patel 10-July-2018 Member-2 Dr D H Brahmbhatt,( Retd. IAS) 10-July-2018

Complaint Procedure/Authority/Forms • Adjudicating Officer- Vide order no. GujRERA/ADM/Adj.Off/361/2018 dated 17.02.2018, Gujarat Real Estate Regulatory Authority in consultation with State Government has appointed Shri Ramesh chandra T Pandya, Ret. District judge as Adjudicating Officer and Legal Advisor in the Gujarat Real Estate Regulatory Authority. • Method of Complaint- Online and Offline • In Online Complaint enter mail id than OTP will be send to mail id for verification than fill-up the form