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Showing posts with label Builders. Show all posts
Showing posts with label Builders. Show all posts

Monday, June 26, 2017

Beware; Registration with RERA doesn’t mean the project is authentic……

The basic object of the Real Estate Act (REA) was to ensure accountability towards allottees, protect their interest, infuse transparency, ensure fair-play and reduce frauds & delays. However, it seems promoters and builders have decided to challenge the competence and power of the Real Estate Regulatory Authority ( RERA) established under REA.RERA also has seem to have succumbed to builders tactics or does n’t have enough infrastructure to verify the validity documents provided by Builders. As far as Maharashtra RERA ( MahaRERA) is concerned many builders have not provided authentic documents to it while registering their projects and MahaRERA also has not verified those. Even then many builders and promoters have successfully obtained registration certificate from MahaRERA.


Some Builders have either not uploaded their photo or uploaded such photo on MahaRERA website

Already Maharashtra RERA rules have been diluted and now builders are not providing authentic and full information and that that has caused a serious question of authenticity of projects even after they obtain the RERA registration. It is a different thing that after complaint MahaRERA may take action on defaulting builders but obtaining information from builders was difficult for consumers. That has not been made easy by REA in Maharashtra. Even after obtaining information, understating and analyzing it is the huge task. Then forget about complaining about it to the RERA.


The reasons may differ but various authorities in Maharashtra always refrain themselves from any accountability, causing serious damage to basic objectives of proactive Acts. Be it The Registration Act, The Right to Information Act, Maharashtra Right to Public Services Act or Maharashtra Land Revenue Code. MahaRERA seems to be no exception for that and reason is the builders and promoters don’t want REA to succeed and want their illegitimate right to cheat consumers intact.

Some builders and promoters have either not uploaded commencement certificates or approved building plants or uploaded such  documents on MahaRERA website

There may be the possibility that MahaRERA may not have adequate infrastructure to verify the authenticity of the documents that builders provide, but it is its responsibility ensure that all the documents required to be submitted under REA are provided. Many builders either have not provided mandatory information or have provided illegitimate, irrelevant or unreadable information. Even then they have received registration certificates. It is now the consumer’s duty to obtain the legitimate documents from MahaRERA,  analyse it and then lodge the complaint if any.

Some builders promoters have not uploaded building plans on MahaRERA website


As per REA builder promoter has to provide and publish
(a)    a brief details of his enterprise including its names and photographs of the promoter;
(b)    a brief detail of the projects launched by him, in the past five years details of cases pending, details of the type of land and payments pending;
(c)    an authenticated copy of the approvals and commencement certificate
(d)   the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as sanctioned by the competent authority;
(e)    the plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof including firefighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy;
(f)     the location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project;
(g)    proforma of the allotment letter, an agreement for sale, and the conveyance deed proposed to be signed with the allottees;
(h)    the number, type and the carpet area of apartments for sale in the project along with the area of the exclusive balcony or verandah areas and the exclusive open terrace areas apartment with the apartment, if any;
(i)      the number and areas of the garage for sale in the project;
(j)     the names and addresses of his real estate agents, if any, for the proposed project;
(k)    the names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project;

However in Maharashtra Real Estate Rules promoters and builders have been exempted from publishing details provided under clauses (b), (e), (g), (h), (i) and (l). Taking full advantage of diluted rules and working of MahaRERA , promoters and builders have suppressed lot of vital information.

This is the expired stamp paper used for self-declaration, The information provided on this paper is also bogus

AS per REA for on-going projects three months period from the date of commencement of the Act for applying for registration. However, some promoter builders have taken this as an amnesty scheme to revive their dead projects. Some builders who have started their projects 15 – 20 years back and supposed to complete it before 2005 have now given a proposed date of completion of the project year 2022. That means the project if completed will take 22 years to complete.

This Project was supposed to be completed in the year 2005, commencement certificate was given  first 2001, Now proposed the date of completion is 2022


Every commencement certificate or plan have the limitation period. After expiry, these documents have to be re-validated. However, some builders have uploaded an expired document on MahaRERA website. As well,  as per REA builders, promoter builder builders have to provide and publish along with brief details of the projects launched by him, in the past five the payments pending. However hardly any builder has complied with it.

There are several other violations made by builders promoters while providing information to MahaRERA . Even then they have got registration certificates but that doesn’t mean the projects are authentic or they have all the required and legitimate documents to start or continue the project. Therefore it is now consumers’ duty to be alert. If you have any query on this subject please write to admin@vijaykumbhar.com

Related Stories

The Maharashtra Real Estate Rules; Latest victim of Bureaucracy & Builder nexus

Builder bureaucrat nexus makes Maharashtra RERA Rules nightmare for home buyers

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Friday, May 6, 2016

Builders and bankers cheating government and buyers in Pradhan Mantri Awas Yojana

Affordable housing is the buzzword since last many years in India. Government floated many schemes under this name . IT also  provided lot of concessions , subsidies and incentives to flat buyers as well as builders. However none of those schemes could provide benefits of  schemes to real needy persons. Because there was no control or authorities to check whether beneficiaries of such schemes were genuine or fake. Pradhan Mantri Awas Yojana ( PMAY) may achieve same fate if proper care is not taken in its early stages. In PMAY also government has given subsidies to flat buyers and  builders.


Photo courtesy apherald.com

To make available homes to really genuine beneficiaries, the government has put some conditions under PMAY guidelines. There are four schemes under PMAY.  However sine last few months builders are advertising about  only credit linked subsidy  scheme (CLSS ) . Most important factor of  CLSS  is that it is applicable to 4041 statutory towns only . And to avail benefits of CLSS beneficiary must be resident  of that urban area  (Town) only. States/UTs at their discretion, may decide a cutoff date on which beneficiaries need to be resident of that urban area.

The government has put a condition of residence to make available homes to really needy persons near their workplace only. However by providing these home to non-eligible persons builders and primary lending institutes (PLI)  are blatantly flouting these conditions. This is the reason that earlier affordable housing schemes failed and couldn't provide the home to whom they were meant for.   

To avoid duplication or misuse of the scheme PLIs have to take NOCs quarterly from State/UT Governments or designated agency of State/UT Governments for the list of beneficiaries being given benefits under credit linked subsidy. State Level Nodal Agency (SLNA) identified by State/Union Territory (UT) for implementing the mission has to facilitate the identified eligible beneficiaries in getting approvals and documents etc., to avail credit linked subsidy. Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this scheme . However none of the CNA or SLNA are doing their job and hence builders hand in gloves with PLI's cheating innocent people.

 In Maharashtra's case Maharashtra housing and development corporation ( MHADA) is SLNA. However, MHADA hasn't prepared any list of beneficiaries . Hence, PLI's and builders are also flouting the conditions blatantly . Not only that , they  shamelessly advertise fake beneficiaries as genuine and bring other in their net

The PLI and builders are also flouting the norm that the beneficiary family should not own a pucca house (an all whether dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India . This condition is there to ensure that the real homeless people should get home. However, the builders are encouraging investors  and second home buyers to take advantage of CLSS.

Actually, Beneficiary of CLSS has to apply for a housing loan directly or through the Urban Local Body (ULB)  or the local agencies identified by the State/ULBs for facilitating the applications from intended beneficiaries. And PLI 's are  supposed to  link beneficiary identification to Aadhaar, Voter Card, any other unique identification or a certificate of house ownership from Revenue Authority of Beneficiary’s native district to avoid duplication. Builders and PLI's are flouting these conditions also.

In the nutshell, builders and PLI's have started encouraging non-eligible persons to invest and buy the flats under CLSS depriving really homeless persons from having his/her dream home. If proper care is not taken in time the PMAY will met also same fate as earlier schemes. homeless people will remain homeless and builders and PLI's will steal all the benefits meant for homeless.


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RTI KATTA is a platform to empower oneself through discussions amongst each other to solve their problems by using Right to Information act, Every Sunday at Chittaranjan Watika, Model Colony,Shivaji Nagar, Pune, between 9.30 to 10.30 A.M.


RTI Resource Person, RTI Columnist
Phone – 9923299199
Website – http://surajya.org/