Ministry of HUPA comes out with Draft Real Estate Rules; seeks suggestions from public in 2 weeks
No
discrimination in allocation rule made fulfilling Minister’s assurance to
Parliament
Project
registration fee from Rs.10 and Rs.20 per sq.mt for residential and Rs.50 and
Rs.100 per sq.mt for commercial projects
Interest
to be paid by promoters and allottee for delays- SBI Prime Lending Rate plus 2%
Promoters
to submit information on 60 aspects about themselves and projects
Minister
of Housing & Urban Poverty Alleviation has formulated Draft Real Estate
Rules within two months of some sections of the Real Estate (Development and
Regulation) Act,2016 coming into force on first of May this year. With the
approval of the Minister of HUPA Shri M.Venkaiah Naidu, the draft rules were
hosted on the Ministry’s website (www.mhupa.gov.in)
seeking suggestions and objections from the public within two weeks.
If
fulfillment of its responsibility towards five Union Territories without
legislatures, the Ministry of HUPA has come out with the ‘Union Territories of
Chandigarh, Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli,
Lakshadweep’ Real Estate (Regulation and Development) Rules, 2016.
The
Rules provide for payments to be made for registration of projects and real
estate agents with the Regulatory Authority, documents and information to be
furnished by developers, procedures to be followed for registration, extension
and renewal of registration, procedures for filing and hearing of complaints
and appeals, appointment and service conditions of the Chairpersons and Members
of Real Estate Regulatory Authorities and Appellate Tribunals and their powers
etc.
Under
the Rules, promoters can’t discriminate against anyone in the allotment of any
apartment, plot or building on any ground. This has been incorporated further
to the assurance of Shri Venakaiah Naidu during the debate on the Real Estate
Bill in the Parliament.
Rules
require the Real Estate Regulatory Authority to be set up in States/UTs to
ensure availability of information in respect of 60 aspects relating to the
promoters and the projects. These relate to the profile of developer of group,
track record of promoter, details of past or ongoing litigations relating to
real estate projects, apartment and garage related details, location, details
of registered agents and consultants, development plan, financials of the
promoter, status of project along with that of approvals, contact details ,
copies of legal title deed, details of encumbrances etc.
The
promoter will be required to upload updates on the webpage of the project,
within seven days from the expiry of each quarter, regarding number and types
of apartments or plots booked, garages booked, status of construction of each
floor with photographs, status of approvals, modifications if any issued by the
competent authority with regard to any license, permit or approval for the
project.
Fee
proposed for registration of projects with the Regulatory Authority is Rs.10
per sq.mt if the plot area is below 1,000 sq.mt and Rs.20 if the area for
development is more than that for residential projects and Rs.50 and Rs.100
per sq.mt for commercial projects.
Upon
the notification of sub-section (1) of section 3, promoters of all ongoing
projects which have not received completion certificates shall apply for
registration of projects within three months and disclose all relevant
information including the size of the apartment based on carpet area.
Functions
prescribed for real estate agents include assisting the allottee and promoter
to exercise their respective rights and fulfill their respective obligations at
the time of booking and sale of any plot, apartment or building.
Draft
Real Estate Rules also provide for payment of 10% of the estimated cost of the
project for compounding of imprisonment of promoter for non-registration of the
project or violation of the order of the Real Estate Appellate Tribunal.
Imprisonment of real estate agent and buyer for violating Tribunal’s Order can
be compounded upon payment of 10% of the estimated cost of the plot, apartment
or building. However, the reasons for imprisonment shall be complied with in
one month.
For
any delay in payment by the promoter and buyer has been proposed to be the
State Bank of India Prime Lending Rate plus 2%.
Selection
Committee headed by the Chief Justice of respective State/UT or his nominee
with Housing and Law Secretaries as members will recommend names for
appointment as Chairperson and Members of Real Estate Regulatory Authorities
and Appellate Tribunals.
After
eliciting public comments/suggestions over the next two weeks, the draft rules
will be discussed with officials of the five Union Territories and further to
revision if required, the rules will be sent for legal vetting. Thereafter, the
rules will be notified.
AAR
June
24, 2016
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