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

• r 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

• f 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

• f 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

• f 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)

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 statement/information contain in the notice advertisement or prospectus, or on the basis of any model apartment

• > Compensation by promoter in the

manner as provided under the Act

• > 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

• f service or other obligations as per agreement to sale within a

period of 5 years* from the date of possession**

• >

Rectification

• f

such defects without further charges, within 30 days

• >

Compensation for non- rectification of default

Remedies available to allottees

Section Defaults of promoter Remedies to allottees 18(1) Fails to complete or is unable to give possession of an apartment, plot or building a) - As per agreement for sale

• Or ; as the case may be , duly completed by the date specified

therein b) Due to discontinue of his business as a developers on account of suspension or revocation of the registration

• If allottee wish to withdraw and

demand the refund, promoter is liable to refund the entire amount with interest

• if

allottee does not intend to withdraw than he will get interest for every month of delay till the handing

• ver the possession

18(2) Loss caused to allottee due to defective title of land on which project is developed or has been developed Compensation from the promoter 18(3) Fails to discharge any other obligations imposed under this Act, Rules, regulation and terms and conditions of Agreement for Sale Compensation from promoter

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

Remedies available to allottees

• 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

Complaint Procedure/Authority/Forms

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

• Adjudicating

Officer- Vide

• rder

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

Complaint Procedure/Authority/Forms

• Complaint with RERA Authority
• As per Rule 11 of the ‘Gujarat Real Estate Regulatory Authority Rules, 2016’ complaint would be file

for violation or contravention of the provisions of this Act or the Rules and Regulations made thereunder, save as those provided to be adjudicated by adjudicating officer.

• Complaint would be filed in Form ‘A’ along with Fees of Rs. 1,000 by way of DD
• Written Complaint will be filed in 3 Sets- Rule 12A(1)
• Complaint shall clearly contain particular of dispute and the relief claimed-Rule 12A(2)
• Complaint shall be accompanied by copies of such documents as are necessary to prove the claim-Rule

12A(2)

• Time limit is not defined
• Complaint with Adjudicating Officer
• As per Rule 12 (1) of the ‘Gujarat Real Estate Regulatory Authority Rules, 2016’ any aggrieved person

may file a complaint with the adjudicating officer for compensation under section 12, 14, 18 and 19.

• Complaint would be filed in Form ‘B’ along with Fees of Rs. 1,000 by way of DD

Complaint Procedure/Authority/Forms

• Power of RERA Authority-Section 35- Where the complaint is made by aggrieved person or suo

motu- Authority have a power of Civil Court where authority can do following act

• 1. Discovery and production of books of account and other documents
• 2. Summoning and enforcing the attendance of persons and examining them on oath;
• 3. issuing commissions for the examination of witnesses or documents
• 4. any other matter which may be prescribed

What is the Books of accounts and documents ? To whom they can summon and how they can enforce the attendance? Why the section -35 power of authority is explained ? Suppose promoter is not cooperating or not providing information or absconding or out of India than aggrieved person can make application to authority to use the power of civil court.

Complaint Procedure/Authority/Forms

Application for settlement of disputes and appeals to Appellate Tribunal

• The appropriate Government or the competent authority or any person aggrieved by any direction or
• rder or decision of the Authority or the adjudicating officer may prefer an appeal to the Appellate

Tribunal.-Section 44(1)

• Appeal is required to me made within sixty days from the date on which a copy of the direction or
• rder or decision made by Authority or adjudicating authority.- Section 44(2)
• Appellate tribunal may entertain the application after sixty days if it is satisfied that there was

sufficient cause for not filing.

• Appeal shall be disposed within in a period of sixty days from the date of receipt of appeal-44(5).
• As per Rule 3(1) and 3(2) of the Gujarat Real Estate Appellate Tribunal Rules, 2016- Appeal Shall be

filed in Form “A” along with Fees of Rs. 1,000/- by way of DD and following documents :-

• An attested true copy of the order against which the appeal is filed;
• Copies of the documents relied upon by the appellate and referred to in the appeal;
• An Index of the documents
• The Gujarat Government has designated , Registrar Food Safety Appellate Tribunal to be the

Appellate tribunal to hear the appeal under the RERA

Complaint Procedure/Authority/Forms

Appeal to High Court

• Any person aggrieved by any decision or order of the Appellate Tribunal, may, file an appeal to the

High Court

• Appeal is required to be filed within a period of sixty days from the date of communication of the

decision or order of the Appellate Tribunal

• Appeal will be filed if the order of appellate tribunal is given on any one or more of the grounds

specified in section 100 of the Code of Civil Procedure, 1908

• High Court may entertain the application after sixty days if it is satisfied that appellant was prevented

by sufficient cause from preferring the appeal

• No appeal shall lie against any decision or order made by the Appellate Tribunalwith the consent of

the parties.

Complaint Procedure/Authority/Forms

• During the Financial Year 2017-18 a total 62 complaints received by GujRERA, out of 62 complaints

majority were regarding possession.

• GujRERA received total 57 complaints from the allottees regarding various issues against the

promoter such as delay in possession, no sale deed after making full payment and no agreement to sale

• n payment of booking amount etc.
• GujRERA heard the cases of the complainant and resolved 11 such cases, remaining 46 cases are

under investigation, where authority has asked for further clarification from allottees and promoter.

• Source:- Annual Report for FY 2017-18 of GujRERA

Complaints under RERA

CA Mahadev Bir irla

Mahadev Birl Birla & Associa iates

Cha Chartered Accountants +91 +91 9712 97123 7819 78191 md. d.birla la@gmail. l.com