AOAFed resumes demand for proper implementation of RERA rules

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AOAFed resumes demand for proper implementation of RERA rules

Homebuyers who had pinned their hopes on RERA had started demanding a rollback of the rules soon after they were made public.

AOAFed resumes demand for proper implementation of RERA rules

With a new government taking over in Uttar Pradesh, AOA Federation has started pushing for proper implementation of the Real Estate Regulatory Act (RERA) rules.

Although RERA was passed by Rajya Sabha on March 10, 2016, the Ministry of Housing and Urban Poverty Alleviation (HUPA) rolled out its rules only in June 2016.

Homebuyers who had pinned their hopes on the much-awaited Real Estate (Regulation & Development) Rules, 2016, against the tyranny of builders, had started demanding a rollback soon after they were made public.

Homebuyers say the draft rules notified by the ministry were rigged, with changes that diluted the effect of RERA.

They also allege that the previous government diluted the rules, as it was in cahoots with real estate developers. The notified state Rules for RERA 2016 further strengthens the real estate developers instead of making them accountable.

Abhay Upadhyay, from Fight for RERA, a pan-India organisation, said the draft already had a lot of loopholes that the UP state rules repeated.

Some loopholes in the rules are as follows:

a) Projects in which RWAs or resident bodies have taken over maintenance from the builder cannot be considered ongoing.

b) Projects where development work has been completed and sale/lease deeds of 60 per cent of the apartments/houses/plots have been executed cannot be considered ongoing.

c) Projects where development work has been completed and builders have applied for a completion certificate from the competent authority cannot be considered ongoing.

d) Monetary penalty instead of imprisonment to violators.

e) The rules fail to identify the minimum penalty for violators, and the monetary compensation can amount to a maximum 10 per cent of the estimated cost of the project but fails to set the lower limit or the minimum penalty for violators.

A letter in this regard has been sent by AOA Federation, headed by TP Tyagi, to Adityanath Yogi, the newly elected chief minister of Uttar Pradesh. Speaking to City Spidey, Tyagi said the diluted RERA rules have no provision to punish the builders. “We had also written to Ram Naik, the governor of Uttar Pradesh," Tyagi added. "He, in turn, wrote to Akhilesh Yadav, the former chief minister of UP, but to no avail. We hope the new government will act on the issue.” 

Speaking to City Spidey, Sunil Sharma, BJP MLA from the Sahibabad constituency, said he would take the issues of the people to the Uttar Pradesh government. “The issues will be presented to the relevant departments of the ministry and proper steps will be initiated,” said Sharma.