UP homebuyers now have a new weapon in their arsenal against erring developers. The Uttar Pradesh Real Estate (Regulation & Development) Rules, 2016, have now been made available to homebuyers by the Uttar Pradesh Housing and Urban Planning department. The rules were finalised on October 27.
Here is an overview:
The developer will have to make sure the Real Estate Regulatory Authority website has the following details:
The rules are applicable for:
Ongoing projects, or projects under construction, or those that have not received their completion certificates from competent authorities yet.
The term ‘ongoing’ cannot be applied to:
The following content can be downloaded from the website:
Refund and compensation for buyers:
The builder is liable to refund the amount paid by the homebuyer, along with applicable interest and compensation within 45 days of the due date, according to the regulations of the Real Estate Regulatory Act.
Penalties for developers:
Violation of the rules is regarded as a compoundable offence, which means that the violator can escape imprisonment in lieu of monetary compensation. Imprisonment can range from one to three years, and monetary compensation can amount to 10 per cent of the estimated cost of the project for three years or 10 per cent of the estimated cost of the plot, building or project, as required in the case for one year.
Formation of a regulatory body:
To ensure that the Uttar Pradesh (Regulation & Development) Rules are implemented, a real estate regulatory authority will be formed by the government. This body will consist of a chairman and three members.