HOMEBUYERS

rera-unscrupulous-developers-poor-homebuyers-high-on-hype-low-on-substance-

RERA, unscrupulous Developers & poor-homebuyers: High on hype, low on substance?

The second-largest employment generator in India after agriculture, the real estate sector has a vital role to play in the growth of the Indian economy as it contributes around 6 percent of the country’s Gross Domestic Product (GDP) each year. The sector embarked upon the journey of rapid transformation by embracing professional standards and evolving into an organized mode thanks to the implementation of RERA – Real Estate (Regulation and Development) Act 2016.

RERA aims to usher in ethical practices in the real estate sector, bringing immense relief to millions of property buyers who are largely taken for a ride by unscrupulous developers. It can be described as a crucial reform measure in the hitherto unorganized real estate sector as it establishes a Real Estate Regulatory Authority that has jurisdiction over both residential and commercial real estate transactions.

RERA claims to protect the interests of consumers by promoting transparency, fair play, and accountability in real estate transactions. With the targeted execution of projects and a uniform regulatory environment for speedy adjudication of disputes, it is supposed to pave the way for the sustained growth of the real estate sector.

Has RERA brought much-needed transparency or simply added to bureaucratic layers over the past four years?

What looks definite is the market sentiment and the faith of homebuyers is still tragically low. The introduction of the RERA, along with GST, did try to improve the situation. However, buying a property still turns out to be a nightmarish experience for consumers, given the ambiguities and complexities surrounding the real estate sector and ineffective implementation of the regulation. More often than not, it is found that a real estate consumer lands into trouble while buying a property, be it for end-use or investment purpose.

As the process of urbanization and industrial growth gains momentum necessitating the availability of real estate on a big scale, the very process of property purchase has become a highly contentious issue, involving development authorities, real estate companies, and property buyers in protracted legal battles.

Eventually, the end-users are taking the final hit because they invest their hard-earned money, apart from taking loans. They have to pay their current rental, besides the EMI against the loans borrowed, which add to their trauma. With the elusive promise of delivery, non-adherence of any time frame on completion of construction, insufficient details available on the track record of the developer, the real estate investment often turns into a non-performing asset.

Going by the increasing incidents in which home-buyers of real estate today have had no way out but to repeatedly knock on the doors of the judiciary, one can imagine the extent to which people have been exploited by developers.

Buyers put their life savings into buying a house but its possession turns out to be a distant dream. The allurement to make more on devious grounds has led us to the juncture wherein a majority of developers are looked upon with suspicion. A lot of effort will have to be put in to clear the pond which can commence only after RERA orders are implemented in letter and spirit, which, sadly, does not prevail on the ground. Clearly, as proof of the pudding lies in the eating, the real impact of RERA lies in its execution on which point it has not fared well across the country. RERA has, by and large, failed to ensure that malpractices in the sector are curbed and all processes are streamlined.

Though RERA was enacted by Parliament to bring cheer to homebuyers, and pave the way for protection from unscrupulous activities, the legal tussles between property buyers and developers due to delay and default in project completion have not come down but rather increased post-RERA establishment.

Despite punitive provisions against errant developers, the Act has largely failed to ensure ethical practices, adherence to quality control measures, timely completion of projects, clear titles, and transparent documentation, strengthening the trust and confidence of investors which in turn would have resulted in market buoyancy. The law is yet to forge a bond of trust between developers and consumers and instill confidence among investors. Against the backdrop of only a few focused and dedicated players following good practices, the regulation has not helped curb manipulations and abuse of law.

The implementation of RERA has definitely been a challenge given its inability to overcome bureaucratic hurdles. In fact, RERA has not led to an image makeover of the real estate sector on the back of much-needed transparency and professionalism. Currently, the delivery of real estate projects is a mirage in India, with RERA holding an abysmal record on the front of execution of its own orders and actual deliverance of justice to property buyers.

(By Vishal Duggal)

18 Oct 2020
further-relief-to-amrapali-homebuyers-sc-nbcc-in-action-even-during-lockdown

Further relief to Amrapali homebuyers: SC & NBCC in action even during lockdown

Supreme Court constituted a committee under the Chairmanship of Ld. Court Receiver, R Venkataramani, on 09.04.2020, gives go-ahead asking NBCC to call tenders for the execution of three more Amrapali Stalled Projects of Noida-Greater Noida namely; Leisure Park Phase I & II; Leisure Park- River View and Kingswood in Smart City comprising 4489 units in all valued at Rs. 1046 cars. 

Earlier on 18 March and 20 March the Court Receiver gave nod to NBCC for tendering and execution of 9 projects of Amrapali in Noida-Greater Noida assuring timely release of funds. These projects included 08 projects in Greater Noida namely; Leisure Valley Villas, Verona, Adarsh Awas Yojna, Golf Homes, Dream Valley Ph 1 Villas and Phase II; Enchante, Terrace Homes and Tropical Garden in Centurian and Project Crystal Homes in Silicon at Noida- all comprising 27223 housing units worth Rs. 5769 Cr.

NBCC has started the process of tendering for all these projects even during the lockdown period with tenders for 07 Projects namely; Golf Homes, Centurian Park, Leisure Valley Villas, Crystal Homes, Dream Valley Phase-1 (Villas), Dream Valley – Enchante and Leisure Valley- Adarsh Awas Yojana, already floated. Tenders for further projects are in the process of floating and will be invited shortly irrespective of lockdown.  

This apart, execution work of 08 Stalled Amrapali Noida-Gr. Noida projects tendered and awarded earlier (7 at Noida and 1 at Greater Noida), comprising a total of 12169 Units and valuing Rs.634 crore, which has been started by the Company and scheduled to be completed in stages in another 12-24 months.

It may be underlined that Supreme Court, about a year ago, asked NBCC to execute two stalled projects, to begin with namely; Eden Park in Noida and Castle in Greater Noida comprising 618 Houses, which NBCC has already completed and handed over as well.

Thus action has been initiated for construction of a total of 44500 houses (including 618 houses already completed) out of about 46500 houses in Amrapali Project providing huge relief to stressed Homebuyers.

While expeditiously acting upon the issue of resolving the homebuyers’ crisis, the learned Court Receiver on behalf of Supreme Court, however, has also called upon the affected homebuyers to promptly deposit all their pending payments with the designated bank account provided by the SC for successful completion of the housing projects.

14 Apr 2020
rera-unscrupulous-developers-poor-homebuyers-high-on-hype-low-on-substance-

RERA, unscrupulous Developers & poor-homebuyers: High on hype, low on substance?

By Vishal Duggal 18 Oct 2020

The second-largest employment generator in India after agriculture, the real estate sector has a vital role to play in the growth of the Indian economy as it contributes around 6 percent of the country’s Gross Domestic Product (GDP) each year. The sector embarked upon the journey of rapid transformation by embracing professional standards and evolving into an organized mode thanks to the implementation of RERA – Real Estate (Regulation and Development) Act 2016.

RERA aims to usher in ethical practices in the real estate sector, bringing immense relief to millions of property buyers who are largely taken for a ride by unscrupulous developers. It can be described as a crucial reform measure in the hitherto unorganized real estate sector as it establishes a Real Estate Regulatory Authority that has jurisdiction over both residential and commercial real estate transactions.

RERA claims to protect the interests of consumers by promoting transparency, fair play, and accountability in real estate transactions. With the targeted execution of projects and a uniform regulatory environment for speedy adjudication of disputes, it is supposed to pave the way for the sustained growth of the real estate sector.

Has RERA brought much-needed transparency or simply added to bureaucratic layers over the past four years?

What looks definite is the market sentiment and the faith of homebuyers is still tragically low. The introduction of the RERA, along with GST, did try to improve the situation. However, buying a property still turns out to be a nightmarish experience for consumers, given the ambiguities and complexities surrounding the real estate sector and ineffective implementation of the regulation. More often than not, it is found that a real estate consumer lands into trouble while buying a property, be it for end-use or investment purpose.

As the process of urbanization and industrial growth gains momentum necessitating the availability of real estate on a big scale, the very process of property purchase has become a highly contentious issue, involving development authorities, real estate companies, and property buyers in protracted legal battles.

Eventually, the end-users are taking the final hit because they invest their hard-earned money, apart from taking loans. They have to pay their current rental, besides the EMI against the loans borrowed, which add to their trauma. With the elusive promise of delivery, non-adherence of any time frame on completion of construction, insufficient details available on the track record of the developer, the real estate investment often turns into a non-performing asset.

Going by the increasing incidents in which home-buyers of real estate today have had no way out but to repeatedly knock on the doors of the judiciary, one can imagine the extent to which people have been exploited by developers.

Buyers put their life savings into buying a house but its possession turns out to be a distant dream. The allurement to make more on devious grounds has led us to the juncture wherein a majority of developers are looked upon with suspicion. A lot of effort will have to be put in to clear the pond which can commence only after RERA orders are implemented in letter and spirit, which, sadly, does not prevail on the ground. Clearly, as proof of the pudding lies in the eating, the real impact of RERA lies in its execution on which point it has not fared well across the country. RERA has, by and large, failed to ensure that malpractices in the sector are curbed and all processes are streamlined.

Though RERA was enacted by Parliament to bring cheer to homebuyers, and pave the way for protection from unscrupulous activities, the legal tussles between property buyers and developers due to delay and default in project completion have not come down but rather increased post-RERA establishment.

Despite punitive provisions against errant developers, the Act has largely failed to ensure ethical practices, adherence to quality control measures, timely completion of projects, clear titles, and transparent documentation, strengthening the trust and confidence of investors which in turn would have resulted in market buoyancy. The law is yet to forge a bond of trust between developers and consumers and instill confidence among investors. Against the backdrop of only a few focused and dedicated players following good practices, the regulation has not helped curb manipulations and abuse of law.

The implementation of RERA has definitely been a challenge given its inability to overcome bureaucratic hurdles. In fact, RERA has not led to an image makeover of the real estate sector on the back of much-needed transparency and professionalism. Currently, the delivery of real estate projects is a mirage in India, with RERA holding an abysmal record on the front of execution of its own orders and actual deliverance of justice to property buyers.

(By Vishal Duggal)

further-relief-to-amrapali-homebuyers-sc-nbcc-in-action-even-during-lockdown

Further relief to Amrapali homebuyers: SC & NBCC in action even during lockdown

By IndianMandarins 14 Apr 2020

Supreme Court constituted a committee under the Chairmanship of Ld. Court Receiver, R Venkataramani, on 09.04.2020, gives go-ahead asking NBCC to call tenders for the execution of three more Amrapali Stalled Projects of Noida-Greater Noida namely; Leisure Park Phase I & II; Leisure Park- River View and Kingswood in Smart City comprising 4489 units in all valued at Rs. 1046 cars. 

Earlier on 18 March and 20 March the Court Receiver gave nod to NBCC for tendering and execution of 9 projects of Amrapali in Noida-Greater Noida assuring timely release of funds. These projects included 08 projects in Greater Noida namely; Leisure Valley Villas, Verona, Adarsh Awas Yojna, Golf Homes, Dream Valley Ph 1 Villas and Phase II; Enchante, Terrace Homes and Tropical Garden in Centurian and Project Crystal Homes in Silicon at Noida- all comprising 27223 housing units worth Rs. 5769 Cr.

NBCC has started the process of tendering for all these projects even during the lockdown period with tenders for 07 Projects namely; Golf Homes, Centurian Park, Leisure Valley Villas, Crystal Homes, Dream Valley Phase-1 (Villas), Dream Valley – Enchante and Leisure Valley- Adarsh Awas Yojana, already floated. Tenders for further projects are in the process of floating and will be invited shortly irrespective of lockdown.  

This apart, execution work of 08 Stalled Amrapali Noida-Gr. Noida projects tendered and awarded earlier (7 at Noida and 1 at Greater Noida), comprising a total of 12169 Units and valuing Rs.634 crore, which has been started by the Company and scheduled to be completed in stages in another 12-24 months.

It may be underlined that Supreme Court, about a year ago, asked NBCC to execute two stalled projects, to begin with namely; Eden Park in Noida and Castle in Greater Noida comprising 618 Houses, which NBCC has already completed and handed over as well.

Thus action has been initiated for construction of a total of 44500 houses (including 618 houses already completed) out of about 46500 houses in Amrapali Project providing huge relief to stressed Homebuyers.

While expeditiously acting upon the issue of resolving the homebuyers’ crisis, the learned Court Receiver on behalf of Supreme Court, however, has also called upon the affected homebuyers to promptly deposit all their pending payments with the designated bank account provided by the SC for successful completion of the housing projects.

amrapali-verdict-pleases-home-buyers

Amrapali verdict pleases home buyers

By IndianMandarins 24 Jul 2019

Thousands of homebuyers, including the Editor-in-chief of this website, are highly pleased with the no-compromise attitude of the judiciary, PM Narendra Modi, and UP CM Yogi Adityanath against the powerful builders' lobby in Delhi and Lucknow. Many happily point out that what has happened to Amrapali Group now couldn't have happened during the SP or BSP regimes that were seen the hand in glove with builders.


Thousands of home buyers heaved a sigh of relief on Tuesday when a Supreme Court bench canceled the registration of the Amrapali group and assigned to public sector National Buildings Construction Corporation (NBCC) the task to complete all the Group's pending projects. For the first time in years, buyers were hopeful that their investment might be recovered now.


The court canceled the group's registration under the Real Estate Regulatory Authority Act. It reasoned that the home buyers' money was diverted in violation of the Foreign Exchange Management Act (FEMA) and foreign direct investment (FDI) norms.


On Tuesday, the bench of Justices Arun Mishra and U U Lalit also canceled the leases of Amrapali's properties granted by the Noida and Greater Noida authorities and directed the Enforcement Directorate to investigate into the cases of alleged money laundering by CMD Anil Sharma and other directors and senior officials of the group.


It appointed senior advocate R Venkataramani as the court receiver and vested into him all rights of Amrapali properties following the lease cancellation.


The apex court also authorized Venkataramani to enter into any tri-party agreement for sale of the group's properties to recover dues.


The court observed that the Noida and Greater Noida authorities colluded with the realty group in allowing diversion of the home buyers' money and not acting in accordance with the law.

It stressed that Noida and Greater Noida have no right to sell the properties of the Amrapali group to recover their dues.


Relieving over 42,000 home buyers of their anxiety and worries, the court directed Noida and Greater Noida to give completion certificates to flat buyers already residing in various projects of the group.


It also directed the Centre and the state governments to take appropriate action against the builders who have not delivered the group projects on time.

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