- The Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016 were finalized and notified on October 27.
- The government has advertised for appointment of chairman and members for its RERA and the state will have a regulator within 2 months.
- The UP government is still in the process of defining the rate of interest payable as compensation by developers in case of delays in delivery of projects.
LUCKNOW: The Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016 were finalized and notified on October 27 and is likely to bring relief to lakhs of home buyers in the Ghaziabad, Noida and Greater Noida region.
Uttar Pradesh (UP) is now one of two states who have notified the Real Estate Regulation and Development Rules, 2016. In an exclusive chat with NDTV, Sada Kant, the UP principal secretary of housing and urban planning said that “The state has come out with an advertisement for appointment of Chairman and members in Real Estate Regulatory Authority and within two months, the state will have a regulator.”
UP RERA: The Highlights
1) Under the UP RERA rules, “ongoing project” refers to projects where development is ongoing, but where completion certificate has not been obtained. But in a major departure from the Centre's RERA, the state's rules also exclude projects where,
– Services have been handed over to the local authority for maintenance,
– Common facilities have been handed over the Resident Welfare Associations.
– Where all the development works have been completed and sale/lease deeds of sixty percent of the apartments/houses/plots have been executed
– Where application has been filed with the authority for issue of completion certificates.
2) As per the notified rules, real estate agents are required to register with the authority. Upon registration, the authority will issue a certificate with a registration number which will be valid for 10 years.
3) Any refund of money along with the applicable interest and compensation, payable by the promoter in terms of the act or rules to the allottee should be done within 45 days from the date such refund becomes due. As per the Centre’s RERA rules, developers will have to pay allottees an interest equivalent to the SBI’s highest Marginal Cost of Lending Rate plus 2% in case of delays. However, the UP government is still in the process of defining the rate of interest payable.
To view the full draft of the UP RERA, you can click on this LINK.
Edited by Nikhil Narayan Sivadas