Dilution of Real Estate Regulatory Act by States

KARNATAKA Govt means builder friendly ,its time to get a more balanced government.First of all the notification should be challenged in SC ,local political pressure should build ,Buying property should be stopped and consumers should come out against this. Also bantwal incidents should also be seriously and honestly investigated. more  

it is well known fact that builders sold home in ration of 60% in White & 40% in Cash i.e. for which no evidence left. The Govt. Get less Revenue and more Black money generated. The Prices of the Home also escalating due to this. So the needy people who do not have enough income to meet their Dream home Exp. So far no strict action has been taken against Builders. The Cost of Construction of Building never goes more than 2500 per Sq. Ft. But builders demands Rs. 15000/- to 25000/- per Sq. Ft. which an ordinary man working in private sector could not afford to buy during his life time. He will be ending his life homeless. Govt. fails to provide shelter to those people who indirectly contribute to the nation in form of paying tax. Some Drastic action needs to be taken against those builders. more  

OUR GOVT. OF KARNATAKA APPEARS TO HAVE NOT AT ALL THOUGHT OF IMPLEMENTING RERA OR FAVORING BUILDERS MAY ADOPT SOME REGULATIONS. more  

Easy way earn money and deceive the innocent people and evade Income tax also. more  

Copy of the suggestions sent on the mail to : To, Chief Secretary, Department of Housing Development , ,Mantralaya, Mumbai-32 Sir, As desired , as a Citizen and as a professional, I have Some Suggestions and Objections on RERA 2016 Maharashtra ,as follows: THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016. Definition S.2 (j) “Disclosure” means the information and documents to be uploaded by the Promoter on the website of the Authority as well as the information and documents, which he is liable to give or produce or cause to be given and produced to the person intending to take or invest in project under the Act to the public at large through print media, electronics media, property exhibitions and promotional events and shall also include the communications made to the Authority, either in physical or electronic form and includes the information, documents, etc., being made available; 1.The Decision and the judicial principles laid down by Hon Bombay HC , to protect the interest of the Buyers needs to be followed in the letter and the spirit. “ In an order that will bring cheer to flat buyers, the Bombay high court has held that builders are bound to honour the promises made in their brochures. Justice K J Rohee observed that the facilities mentioned in the brochure can be treated as part of the agreement even if it not part of the pact between the builder and the flat buyer. Hearing a petition filed by residents of the Madhu Vihar Cooperative Housing Society in Kandivli, the court restrained the developers, Jay-antilal Investments, from any construction on the plot of land shown as reserved for a garden.” 2 The Web site disclosure needs to be of the past , present and the future Projects by the builder . It also needs to be in line with Corporate Law Reporting , wherein No. of complaints , Complaints solved and the Complaints pending are disclosed on the face of reporting. 3 Once the Disclosure is made , no Contradictory clauses in the agreements be allowed . 4 One sided Clauses in the agreements in contrast with the disclosure should not be allowed. Information to be furnished by the promoter for the registration of real estate project.- S.3(2) (vi) Aggregate area in sq. meters of the recreation open space- Once identified ,in the pan should not be allowed to be altered , once any one agreement is entered in to. (5) (i) The promoter shall pay a registration fee………….. subject to maximum of rupees One Hundred Thousand only. In comparison with Central RERA Rules, the prescribed maximum fees are educed , for no reason , as against Increase in fees to buyers who want to go before appellate authority. 4. Disclosure by promoter of ongoing real estate projects.-(1) The promoter of an ongoing real estate project, in which all buildings as per sanctioned plan have not received occupation certificate or completion certificate ………… Should include ..or not formed the Society etc……… (2) The Promoter shall disclose all details of ongoing real estate project as required under Subsection (1) of section 4 and Rule 3 including the extent of the construction work completed in respect of Buildings as per the last approved sanctioned plan of the project and the extent of development of Common Areas, Amenities etc. along with expected period of completion of the on-going real estate project. The Chronological Order of such disclosure needs to be prescribed by statute …….i.e what should be completed and disclosed first etc. The promoter shall submit a certificate from a Chartered Accountant certifying the balance amount of receivables from the apartments / flats / premises sold or allotted and in respect of which agreement have been executed and estimated amount of receivables in respect of unsold apartments /flats / premises calculated at the prevailing ASR rate on the date of certificate. Under the statute, Running Bill format needs to be provided so that the same can be recorded in the accounts by the builder on the basis of which certifying the balance amount of receivables will be practicable …….. (3) (a) The Promoter shall further disclose the number of the apartments sold or allotted to the allottees and if such apartments are sold on ‘carpet area basis’ or on other basis such as built up area, super built up area, etc., for each Building as per last approved sanctioned plan, the details thereof; Additional options given other than carpet area are not desired , and may act against the interest of the buyers ……….. (4) The Promoter shall construct and develop real estate project in accordance with the sanctioned plan, and layout plans and specifications as approved by the Competent Authorities: Completion of the buildings needs to be in accordance with Development Control Rules and specific mention is desired in the disclosure as to “side margins” duly kept and adhered to in accordance with DC Rules …. (ii) “For ongoing projects within the meaning of the first proviso to sub-section (1) of section 3 of the Act. – For ongoing real estate project in which all buildings/wings as per sanctioned plan have not received occupation certificate or the completion certificate (as the case may be) has not been issued Should include ..or not formed the Society etc……… Provided further that, in the event where the estimated receivables of the ongoing project is less than the estimated cost of completion of the project, then 100% of the amount to be realized from the allottees shall be deposited in the said separate account; Certification by CA is desired at this stage as well… If the promoter fails to form the legal entity like Cooperative Society or Company or Association or Federation, as the case may be, the Authority shall by an order direct the Promoter to apply for formation of such legal entity or may authorize the allottees to apply for formation of such legal entity. Registrar for registration of the Co-operative Housing Society under the Maharashtra Co-operative Societies Act, 1960 or MCA or any other Legal Entity, may be the correct authority to implement the relevant provisions……….. 10. Agreement for Sale. Nothing in this sub-rule shall be deemed to prevent the promoter to modify the model form of Agreement for Sale at Annexure ‘A’ The freedom to devise individual formats of agreements dilutes the basic tr=hrust and the purpose of RERA , to protect the buyers interest… 2) Any application letter, allotment letter or any other document signed by the allottee………. shall not be construed to limit the rights and interests of the allottee under the agreement for sale under the Act or the rules or the regulations made there under. Such a clause may have adverse implications under Income Tax ,as to Capital Gains Levy . Other Suggestions: 1.Any premium collected by the builder between the period society is to be formed and the actual date of society formation, builder must reimburse such premium to the society. 2 Any amount directly or indirectly collected by the builder for sale of car parking, between the period society is to be formed and the actual date of society formation, builder must reimburse such parking sale amount to the society. 3 Separate Certificate by CA , from time to time, of the payment of taxes collected against transaction of sale of flat under construction . I hope some of the above suggestions and objections may be considered in final draft of the LAW. Thanks , Regards CA Suniiel R Karbhari more