Rera norms get nod, govt redefines ‘ongoing’ project
The Haryana cabinet on Tuesday approved the state Rera rules, clearing the decks for the new real estate law to be notified in the state. Amid fears expressed by various homebuyers’ groups that the state would bring in a diluted version of the central law, the first thing that the government said after the rules were cleared was that it had not done so.
However, there is a clear difference in the definition of an ‘ongoing’ project, the main bone of contention for homebuyers, particularly those in Gurgaon where thousands of flats are running many years behind schedule.
The Haryana rules state that an ongoing project that applies for occupancy papers, after completion of construction, on or before the date when the rules are officially notified (and not May 1 when the central Rera came into effect) by the state will not come under the ambit of Rera. Sections of ongoing projects for which part occupancy certificates have been granted before the new rules are notified will also not come under the purview of Rera.
In case an application is made on or before publication of the rules but an occupation certificate is refused, a developer will have to make an application for registration of the project within 30 days of receiving the receipt of refusal.
The Haryana town and country planning department had on April 28 notified draft Rera rules. Since then, the Haryana Real Estate Regulatory Authority (HRERA) received a total of 1,874 objections and suggestions from realtors’ association Credai, RWAs and homebuyers. The rules, officials said, had been finalised after considering these.
Another point of interest was the penalty payable by the builder to a homebuyer in case of default of possession or instalment. The rules have made it clear that the interest would be the same for both. It will same as State Bank of India’s highest marginal cost of lending rate plus 2%, or the benchmark lending rate fixed by SBI for lending to people.
Realtors have to pay a registration fee of Rs 10 lakh for residential/industrial projects of hyper/high potential (I&II) and Rs 5 lakh for medium and low-potential projects. However, for commercial/cyber park/hyper/high-potential (I&II) projects, a builder will have to shell out Rs 20 lakh. The rules say that in case of residential/industrial plotted colonies, the rate would be applicable for the gross area of the colony.
However, in case of group housing, commercial or cyber parks, rates are for 100 floor area ratio (FAR) and would be proportionately higher for higher FAR. Till date, HRERA has approved 22 real estate projects — 15 in Gurgaon, five in Bahadurgarh and two in Sohna — as they had moved applications for registration under the draft rules. The Centre has asked all states to notify Rera by July 31.