Haryana to put real estate regulation rules before cabinet
Chandigarh: After processing 1,872 objections by developers as well as home buyers on the draft Haryana Real Estate (Regulation and Development) Rules, 2017, the state government has now decided to place these rules in the next cabinet meeting for deliberations before the final notification. Rules are expected to be finalised by the end of this month.
Union government’s Real Estate (Regulation and Development) Act, 2016, came into effect from May 1 across the country and builders as well as property dealers have to register themselves before July 31. The Act aims at facilitating home buyers by bringing in transparency in the real estate sector and ensuring accountability so that stalled projects are completed on time.
As the Union minister of state for urban development, housing and urban poverty alleviation Rao Inderjit Singh had also raised objections on Haryana government’s decision to ‘dilute’ RERA, it is to be seen whether the state government would come out with stringent rules for the benefit of home buyers. Haryana government had diluted the draft rules by exempting the ongoing housing projects from registration that had applied for occupancy certificate or part completion certificate if the competent authority permits them within three months of submission of the application. Whereas the central RERA rules say that ongoing projects without the completion certificate would have to be register with the respective state authority.
Meanwhile, Haryana Real Estate Regulatory Authority (HRERA) has approved 22 real estate projects – 15 in Gurugram, five in Bahadurgarh and two in Sohna – as they had moved applications for registration under the draft rules. Till date only 15 real estate agents have applied to HRERA and all have been authorized to carry out their business.
A senior officer of the town and country planning department told TOI, “After we found that 10 builders in Gurugram had issued advertisements for their projects in newspapers in contravention of the provisions of the Act, we issued them show cause notices on July 3.” As per section 3(1) of the Act, “No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the RERA established under this Act.” If any real estate promoter violates the provisions of the Act, he shall be liable to a penalty which may extend upto 10 percent of the estimated cost of the real estate project as determined by the RERA.
Pending finalization of rules by the Haryana government, most of the real estate projects across the state, especially the national capital region have come to a standstill since builders are not coming forward to register themselves and home buyers cannot purchase.
It was on April 28 that Haryana town and country planning department had notified draft rules under Real Estate (Regulation and Development) Act, 2016. HRERA had received a total of 1,872 objections and suggestions from Confederation of Real Estate Developers’ Association of India (CREDAI), other developers, resident welfare associations and individual consumers. Most of the builders had suggested that the registration charges be reduced and not changes be made in the already-concluded bilateral agreements with the home buyers.
Currently, most of the builders have bilateral agreement according to which 15% interest is chargeable if home buyers are late for paying installments but if builders fails in timely delivery of possession to the home buyer, they only pay between 5 – 8%. A senior officer of the Haryana town and country planning department said that according to new rules, the state has proposed the same burden of interest on both defaulting sides. The officer said, “Interest charged would be two percent above the banks’ lending rate.”
Box: Town and country planning department records reveal that there are 494 residential plotted colonies across the state which are yet to be issued final completion certificates. Gurugram has 269 such plotted colonies, Sonepat 39, Faridabad 31, Karnal 22, Panipat 20, Rohtak 19, Rewari 15; Panchkula and Jhajjar 9 each; Palwal, Kurukshetra, Yamunanagar and Fatehabad 8 each; Ambala and Hisar 5 each, Sirsa and Jind 4 each; Kaithal, Mahendergarh and Bhiwani 3 each.