Bombay high court (the Nagpur bench) has directed a group of builders to comply with a July 31 registration deadline under Real Estate Regulation and Development Act (RERA), 2016. What happened was a group of builders have applied for the extension of the month end deadline set under the revised Real Estate Act.
After hearing a petition filed by four builders, who questioned the constitutional validity of certain strict and frivolous provisions of the new law which according to them shouldn’t be applicable for the projects that have started before RERA had come into frame and at under-constructional stage.
Against which the union government mentioned in an affidavit that RERA is not against constitution nor it is a retrospective application as ongoing projects are not complete. The centre in its affidavit also said that "The Real Estate Act does not envisage penalty for violations prior to the commencement of the Act.'' The Real Estate Regulation and Development Act (RERA), 2016 was passed in March 2017. Builders have been found largely belittling its legal importance.
Limited percentage of builders has registered under RERA as of now, while the deadline is just at approaching stage. Government also highlighted that the provisions of RERA where it clearly cited that the responsibilities of the promoter and related penalties for the violation. All these were declared nationally from May 1 and accordingly developers should get registered by far. Already the government has allowed 3 months extension period for the registration purpose.
As per the last update a division bench of Justice Bhushan Dharmadhikari and Justice Rohit Deo allowed petitioners — Swapnil Promoters and Developers, Swapnil Associates, Sukhyog Construction and Guru Construction — to revise their petition within a week and adjourned the matter to August 21 for additional hearing.
Senior counsel Mr. Sunil Manohar, who appeared for the developers, said that the developers would comply with the registration deadline for sure but the state should not take intimidating action against the developers. Additional Solicitor stated that if there were no breaches, for instance, "if the builders didn't issue any advertisements or take flat bookings from customers, there would be no question of taking any action".
According to the petition, the provisions where it is stated that opening an escrow account and maintaining 70% balance for the existing project development is against real estate sale and it’s unconstitutional as well from the perspective of real estate business development.
“People who want to buy property in Kolkata incoming days must have to check few things before coming to any agreement with the builders for instance they need to check whether the project and the developer is registered with RERA authorities and having a valid registration number. It’s also recommended for their better security to crosscheck developers’ and realtors’ track record on the state RERA website. Buyers are also advised to be sure about the project’s authentication such as whether the project has received required certificates from several authorities or not for their better security,”- said Mr. Mahesh Somani West Bengal RERA & Realty expert.
-LNN (Liyans News Network) – Avail big GST sale on hi-end luxury flats in Rajarhat. Buy/Sell/Rent property with Kolkata’s leading property portal. Get flat 8% off. Hurry up!
After hearing a petition filed by four builders, who questioned the constitutional validity of certain strict and frivolous provisions of the new law which according to them shouldn’t be applicable for the projects that have started before RERA had come into frame and at under-constructional stage.
Against which the union government mentioned in an affidavit that RERA is not against constitution nor it is a retrospective application as ongoing projects are not complete. The centre in its affidavit also said that "The Real Estate Act does not envisage penalty for violations prior to the commencement of the Act.'' The Real Estate Regulation and Development Act (RERA), 2016 was passed in March 2017. Builders have been found largely belittling its legal importance.
Limited percentage of builders has registered under RERA as of now, while the deadline is just at approaching stage. Government also highlighted that the provisions of RERA where it clearly cited that the responsibilities of the promoter and related penalties for the violation. All these were declared nationally from May 1 and accordingly developers should get registered by far. Already the government has allowed 3 months extension period for the registration purpose.
As per the last update a division bench of Justice Bhushan Dharmadhikari and Justice Rohit Deo allowed petitioners — Swapnil Promoters and Developers, Swapnil Associates, Sukhyog Construction and Guru Construction — to revise their petition within a week and adjourned the matter to August 21 for additional hearing.
Senior counsel Mr. Sunil Manohar, who appeared for the developers, said that the developers would comply with the registration deadline for sure but the state should not take intimidating action against the developers. Additional Solicitor stated that if there were no breaches, for instance, "if the builders didn't issue any advertisements or take flat bookings from customers, there would be no question of taking any action".
According to the petition, the provisions where it is stated that opening an escrow account and maintaining 70% balance for the existing project development is against real estate sale and it’s unconstitutional as well from the perspective of real estate business development.
“People who want to buy property in Kolkata incoming days must have to check few things before coming to any agreement with the builders for instance they need to check whether the project and the developer is registered with RERA authorities and having a valid registration number. It’s also recommended for their better security to crosscheck developers’ and realtors’ track record on the state RERA website. Buyers are also advised to be sure about the project’s authentication such as whether the project has received required certificates from several authorities or not for their better security,”- said Mr. Mahesh Somani West Bengal RERA & Realty expert.
-LNN (Liyans News Network) – Avail big GST sale on hi-end luxury flats in Rajarhat. Buy/Sell/Rent property with Kolkata’s leading property portal. Get flat 8% off. Hurry up!
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