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Regulatory authority soon to monitor realty sector

Postby s1joshi » Sat Feb 16, 2013 9:13 am

Courtesy : Mr Gaur

http://www.tribuneindia.com/2013/20130216/haryana.htm#1

Regulatory authority soon to monitor realty sector

Registration of promoters, property agents to be mandatory
Pradeep Sharma
Tribune News Service

Chandigarh, February 15
Property transactions in the unregulated realty sector in Haryana are set to become transparent. In a first-of-its-kind initiative to protect the interests of property buyers and have a regulated and planned development of the real estate sector, the state is set to have the Haryana Real Estate Regulatory Authority.

The constitution of the authority, which forms a part of the Haryana Real Estate (Regulation and Development) Bill, 2013, aims at the twin objectives of the registration of the real estate projects and real estate agents for making transactions hassle-free and transparent for the benefit of the common man.

"No promoter shall book, sell or offer for sale, or invite persons to purchase in any manner any immovable property or part of it without registering the real estate project with the authority," says the draft bill, which is expected to be passed by the forthcoming session of the Haryana Vidhan Sabha.

The authority would provide a registration number to the promoter, including a login ID and password for accessing the website of the authority and create his own web page to upload the details of the project. "In this way, the details of the projects, including the advertisements issued by the promoters, would be put in the public domain and the investors would be able to access the requisite information to avoid frauds in property transactions," a senior government functionary told The Tribune here today.

In a bid to check "pre-launch" bookings and speculation in the realty sector, the Bill makes it mandatory for the promoter to enter into a written agreement for sale with buyers after paying an advance of 10 per cent of the total cost of the property.

Meanwhile, the authority, having one chairman and at least two members, would have the powers of the civil court and empowered to settle "any dispute between the promoter and allottee." It would be mandated to make recommendations for protecting the interests of the allottees and promoters, order investigations and issue directions for the regulated and planned development of the state.

The appeals against the order of the authority would go to the Appellate Tribunal which would be the final authority to adjudicate on the authority's orders. All proceedings before the tribunal would be deemed to be judicial proceedings under the Indian Penal Code.

Commenting on the Bill, Kuldeep Soni, a prominent builder, hoped that if implementated in letter and spirit, the new provisions would go a long way in instilling ethical business practices in property business.

Real estate Bill
Haryana to have regulatory authority to regulate realty business.
All information about realty projects to be put on public domain.
Authority empowered to settle any dispute between promoter, allottee.
Authority and tribunal to have powers of the civil court.



Its all the more important for members to join dharna organized on 24th Feb and ensure that this turns to reality soon and does not remain in papers, Request members to join in large numbers and support protest organized for real estate regulatory body, For details refer thread -

join-the-dharna-at-jantar-mantar-on-24-feb-2013-for-real-estate-regulatory-bill-t1508.html

Sign the petition
http://www.myfaridabad.in/petition/real ... tory-body/
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Re: Regulatory authority soon to monitor realty sector

Postby s1joshi » Sun Feb 24, 2013 10:59 am

Lets continue to focus and fight and ensure a real body to regulate the corrupt builders

For links on draft & sharing suggestions, Please refer link
post13354.html?hilit=haryana%20real%20estate#p13354


http://www.gurgaonscoop.com/the-taming-of-the-tigers

Even as the UPA government at the Centre, led by the Congress, is struggling to bring the Real Estate Regulatory Bill into reality, its counterpart in Haryana has surprised everyone with the proposal to introduce a state-specific Real Estate Regulatory Bill, to regulate and clean-up the booming real estate sector. The timing of the proposed Bill, and the speed with which the Hooda government has built the momentum around the proposed regulatory body, has stumped even the most astute observers. Questions are also being raised as to why a government, which until now has failed to rein in the builders, wants to clean the Augean stables, implement the rule of law, and ensure a balanced playing field. It has left many wondering why Chief Minister Hooda has suddenly embarked upon the gargantuan task of regulating an industry which till now has been able to bend almost any policy and person according to its will. The Haryana government itself has been mired in a number of real estate deals, most of which have origins in Gurgaon, and is on the last leg of the current tenure. While critics observe that the proposed body is another attempt to confuse the stakeholders, there are others who support it in the hope that it will bring in more transparency and accountability into
the system.

The City residents meanwhile want to know whether the regulatory authority will ensure the timely completion of projects, the launch of new projects on land that has clear title, balanced builder-buyer agreements, builders handing over control of the condominiums to the RWAs on time – and many more things that are stipulated in the LC-IV Agreement, Haryana Apartment Owners Act 1983, and Haryana Urban Development of Land Act 1975. Lately, thousands of disgruntled home buyers in the City have been forced to come out on the streets, to ensure that the builders and authorities listen to their woes and are taken to task. Colonel B.K Dhawan, President Emeritus of the Silver Oaks RWA, is of the opinion that there is no need for the government to come up with a new Act, as the State already has enough laws to regulate this sector. “This proposed Authority will further confuse matters; it is merely an eyewash. The government has failed to implement the Haryana Apartment Owners Act 1983 in letter and spirit. The TCP department is responsible for the mess in Gurgaon, and other areas of the State, as it has not effectively implemented the rules and regulations,” asserts Dhawan. He further contends that almost everything that is being proposed under the new Authority is already covered by the existing rules. A new rule book will only confuse.


The views held by Dhawan seem to represent the mindset of an average Gurgaonite, who has seen the slide of the City, as builder after builder has taken the residents for a ride. Perhaps the recent incidents, in which buyers have collectively revolted against the might of the developers in the case of World Spa, and more recently in Orchid Petals, has also influenced the government’s decision to bring in the regulator. The decision by a group of buyers to approach the Competition Commission against DLF, for abusing its dominance in the market—which led to a Rs. 630 crores penalty award—could also be one of the reasons that led to a move towards an independent regulator, aver industry watchers.



While the intention of the government may be right, S.C Talwar, a resident of Ambience Island, says that when builders can co-opt the highest powers in the State, and even force the DTCP to become a mute spectator, how would the new regulator change things? “Who will implement the rules? We can either empower the DTCP with more effective and professional employees who can regulate the industry, or disband it in favour of the proposed new body. We already have HUDA, DTCP and MCG – what more can be achieved when the officials themselves do not want
to implement the rules?”
he asks.

Given the failure of the Haryana Regulation of Property Dealers and Consultants Act, which was touted as the panacea for curbing illegal activities of brokers, many buyers who have had bad experiences assert that nothing much will change in the system. Sanjay Sharma of Qubrex says that this proposed Bill might bring more transparency into the system – as it provides for the creation of a website for logging of data and information – but bringing in accountability will be a far cry. “Another important issue is that the regulator must ensure that it does not become a choke point for complaints. Clever operators can clog the system with fake complaints, thereby ensuring that its working is hampered,” he says. An interesting point raised by Sharma is of how the government plans to ensure that builders do not make profits beyond the 15 per cent, as stipulated in law. Also, how would the existing rules and regulations be brought in synergy with the proposed powers of the authority?
asks Sharma.


While buyers and real estate activists are not much enthused by the proposed Bill, some associations think different. Dr. P.S.N Rao, Founder and Chairman, National Association of Realtors-India, says that this Bill will provide more transparency and accountability, since a lot of vital information about the projects will be available easily in the public domain, and accessible to prospective buyers, before they make the purchase decision. He further says that the laws on real estate are inadequate in India. “We need this Real Estate Regulatory law so that the business can be regulated for the benefit of the consumers. There is no protection for the consumers today, and existing provisions in laws are grossly inadequate to bring the erring builders and developers to book,” he asserts. On the issue of timely completion of projects, and handing over of common areas, Rao says that this Bill makes it an obligation on part of the authorities, as well as the government developers and other agencies, to conform to the rule book.


A number of real estate professionals, who are into the broking business, are also welcoming this Bill, because they think it will bring in more professionalism into the industry. Puneet Verma, Vice President, Remax India, a real estate firm believes that—like insurance—the real estate industry needs an independent regulator. It will make the registration of brokers, builders and projects compulsory. The provision of strict penalties, and a likely chance of including imprisonment as punishment for violating certain sections of the proposed Bill, is also being deemed as quite remarkable. A similar Bill being brought in the Union Law ministry has proposed imprisonment up to three years, or fine up to 10 per cent of the project, in case a builder does not register with the Authority.

A real estate activist involved with consumer advocacy for decades, recalls that the Maharshtra Apartment Owners Act originally had provisions for imprisonment of an errant builder, but later this section was removed. With a large number of consumers approaching the courts over irregularities being committed by the developers, it is understood that the Haryana government, in order to woo the recalcitrant citizenry, has decided to introduce this Bill, he adds. R.S Rathee of the Gurgaon Citizens Council, says that the government should be ready to implement the Bill in letter and spirit – only then will it be successful. “We are studying the details of the proposed Bill,” he says. Verma of Remax firmly believes that once the regulator comes into play, the field will be more clean, as a referee would be overlooking the players constantly. “Real estate is the hottest investment destination, and it needs to be disciplined. This will make the industry more responsible and accountable, and that is the need of the hour,” he says.



Many in the industry feel that the proposed Bill should ensure that the proposed regulator is an overarching body, that guides HUDA, DTCP, HSIIDC, Housing Board and other agencies dealing with real estate development in Haryana. They also want that private builders should be made to follow the rule of law, rather than allowing them to abuse it – which has been happening often till now.



Devinder Gupta, a prominent real estate consultant, and MD of DG Realty, opines that the coming of a regulator will ensure that projects are registered before being sold to buyers. The plans of the project, the titles of the land, the proposed area to be built and sold, will all have to be put on a website before sale takes place – and this will bring in more transparency. “The mid-way change in plans, which often brings the buyers and builders into a clash, would also end, if the authority comes into place and plays a real role,” he adds. But Gupta also says that many buyers also do not adhere to the agreements – which is also going to be penalized as per this Bill.

For him and many others, this Bill is fairly balanced, and will help in the opening up the industry, provided the government has the political will and intention to clean up realty. However, sceptics argue that this Bill is another tool for the government to arm twist the builders, as cash will soon be required to fund the oncoming costly elections. Having not much faith in local governance and political promises, the residents of the Millennium City are keeping their
fingers crossed, as they
know that their fate is going to be decided by another piece of legislation – which will either bring them salvation, or make it even more difficult to attain the real estate Nirvana.







Real Estate

The Town & Country Planning Dept (TCP) has proposed the Haryana Real Estate (Regulation and Development) Bill 2013 (see tcpharyana.gov.in), for ensuring transparency in property/real estate transactions, and also for helping regulate and develop the real estate sector. All projects, promoters and real estate agents would need to be registered with HRERA, for a fee. Among many points in the Bill, funds received from customers would need to be securely and separately banked by the builders. It promises the setting up of a Haryana Real Estate Regulatory Authority (HRERA) within 1 year of the passing of the Act. There would also be an Appellate Tribunal for adjudication of disputes, and for taking up appeals against the Authority’s decisions.



The Act would not apply to properties with less than 1000 sq.m. land, or projects with less than 12 apartments. Also exempted would be properties where Occupation and Completion Certificates have already been issued before the Act comes into force.
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Re: Regulatory authority soon to monitor realty sector

Postby BlessU » Sun May 18, 2014 2:25 am

Hi
Greetings

Another glaring example of how administration and the current congress government are hand in glove to facilitate the builders in LOOTING home buyers..

License, which initially was required to be renewed every two years under the HRD ACT, was increased to 4 years for all licences since 2010 by the Mr HOODA led Congress Govt. Now this govt, which is more synonymous as a land and property broker house, has increased the requirement to 5 years!!!

What are the possible negative outcomes of this poor decision?
- Builders will continue to enjoy buyers money with no liability OR INCLINATION to delivery before 5 years. Now being given legal sanctity by the Mr Hooda govt.
- Govt/DTCP gets another excuse to NOT audit the performance of licensing conditions BY BUILDERS, quoting "review pending- renewal of license".
- EDC/IDC schedule agreed to between builder and DTCP under the chairmanship of Mr HOODA already extended beyond many years with interest penalty lower than bank commercial rates and even lower for REPUTED BUILDERs. Meaning that builders will continue enjoying CHEAP finance at the cost of buyers. Buyers however continue to pay 18-24 % for delay in demand made by builder(though higher interest not officially permitted by DTCP)
- All builders will therefore not want or have any reason to complete any project before 5 Years.
and many more relaxations, reasons for builders not to deliver, cheat the buyers, charge escalation, excuses provided so on and so forth...Not sure if this has been done retrospectively, nor any justification provided.

Earlier this state congress govt totally twisted the entire act to give absolute relief to builders by compounding of almost all offences/illegalities. Recently, they removed all the approved Zonal Building Plans from the department website. Not a single amendment or change in the act has been made by 10yrs appx of Mr Hooda led govt to ensure the rights of the buyers. Today the act is so much in favour of the builders that it is no longer wise to buy property from private builder.
Joke of the day.. " Money invested in unauthorised colonies is safer than HUDA/Pvt builder colonies"

High time we have a regulator to prevent state town planning departments, ministries and politicians to twist law in favour of croony capitalists and political BROKERS.

AACHE DIN PATA NAHIN KAB AAYEINGE

Cheers
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