PUNE: Over 1,000 representatives of societies in Pune gave their views on the state’s Real Estate (Regulation and Development) Act (RERA) rules stating that it was “pro-builder”. The members and activists said the central rules should be followed and they should favour the buyers.
The state has sought citizens’ views over RERA till December 31. A petition will be sent to chief minister Devendra Fadnavis. President of Pune Grahak Panchayat Vijay Sagar said the petition would highlight the loopholes in the rules before the state government make it an act.
Activists said the rules were not easily accessible and said the RERA rules in Marathi were made available only on Monday. At present, 100 suggestions and objections have come in. Consumers have questioned why they must pay 30% of the total cost while signing the agreement and 45% when the plinth of the building is constructed as against the central RERA act which states only 10%, Sagar said.
He wanted to know how builders could sell parking or open spaces to any consumer as against the Maharashtra Ownership Flat Act, 1963 Act and an SC ruling that parking, common terraces and open space is the property of the society and builders can not sell it. The Maharashtra State Housing Department had published its draft version on December 9 after failing to meet the deadline twice.
Activist Vijay Kumbhar has pointed out several lacunae in comparison with the Union government’s RERA rules and those implemented in Madhya Pradesh, Goa, Karnataka and other Union territories. In the state RERA draft, a complainant is required to pay Rs.10,000 to lodge a complaint or an appeal with the requisite authority as opposed to the Centre’s rules which seeks a fee of only Rs.1,000 while filing, he said.
A builder can terminate a flat purchase deal at just a week’s notice via email if a buyer defaults on an installment. The builder can refund the money without interest to the purchaser over six months which is pro-builder, he added. While the regulator is to be appointed later, a temporary authority in the state has already been appointed, he said.
The Centre’s RERA rules call for revocation of the licence of any real estate agent suspected of deceiving buyers, but the state’s rules has diluted them, giving the agent a chance to make a fresh application after six months. All builders have to register with RERA. The central rules have specified that the developer has to pay a fee of Rs 10 per sqm for residential projects where the area of land proposed to be developed does not exceed 1,000 sq m and Rs 50 per sq m for commercial projects for an area that does not exceed 1,000 sqm.
However, the state rules for propose only Re.1 or Rs.2 for residential and none for commercial projects. Central rules double fee for registration has been proposed to prevent delay in completion of project while in state rules have no such provision. Activist pointed out that the state’s draft did not not mention that the promoter will not discriminate against any allottee at the time of allotment of any apartment, plot or building.
Realtors said the government had kept the entire industry and the challenges ahead in mind while framing the rules. “Credai Pune will give its own suggestions about issues like delays from local authority permissions. Local approvals have been completely missed out in the rules,’’ Credai Pune vice president Rohit Gera told TOI. He added that RERA has new additional costs that developers will have to incur which were earlier being borne by the customer.
Credit ET Realty