Only registered home buyers' body can file complaint against builders: NCDRC

NEW DELHI: The National Consumer Disputes Redressal Commission (NCDRC) has clarified only registered residents' welfare associations (RWAs), consumer organisations, cooperative societies or association of flat or plot buyers can file complaints against builders in the commission.

Clearing the ambigbuity regarding the term ‘voluntary consumer association’ in Section-12 of the Consumer Protection Act, presiding member Justice VK Jain in his order on Friday said, "Recognised consumer association means any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956) or any other law for the time being in force."

The commission has also made it clear that a Trust cannot file a case for one or more consumers or on behalf of a group.

It said the sole or one of the main objectives of the body should be to pursue, propagate, advance, safeguard or promote the interests of the consumers in general.

"It should be a body formed by a group of persons, coming together of their own will and without being motivated by any financial consideration," the order said.

NCDRC also clarified that if a body is formed with the objective of making financial gains, and not to serve the cause of the consumer or the society in general, it will not qualify as a voluntary consumer association.

"Authenticity of an association is important. I think with clarity on the same, the process will be streamlined and the cases will get expedited. We will spread awareness and appeal to the buyers to form associations and get it registered before moving to the court," said Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (NEFOWA).

NCDRC and the Supreme Court have already made it clear that a group of consumers having a common interest or a common grievance and seeking the same or identical relief against the same person can come together without forming any association to file a case in NCDRC with a claim of Rs 1 crore or more.

In case the claim is less than Rs 1 crore, then consumers need to file cases in the district forum or state commission.

Source- ET Realty

Noida builders promise to deliver 25,000 flats by December

GREATER NOIDA: Builders on Saturday assured Amit Mohan Prasad, CEO of Noida and Greater Noida Authorities, that they would deliver 25,000 residential units by December 2017 and also submit a road map for handing over of residential units to homebuyers within a week.GREATER NOIDA: Builders on Saturday assured Amit Mohan Prasad, CEO of Noida and Greater Noida Authorities, that they would deliver 25,000 residential units by December 2017 and also submit a road map for handing over of residential units to homebuyers within a week.

The assurance was given to Prasad in a meeting he held with Getamber Anand, national president, Confederation of Real Estate Developers Association of India (Credai), and several other builders with projects in Greater Noida. The meeting was the second in the series of meetings Prasad has been holding after scores of homebuyers met UP chief minister Yogi Aditya Nath last month.

“The status of about 16 group housing projects was reviewed by the CEO,” said Janardan, additional CEO, GNIDA. “Builders were asked to submit a detailed report of each project including the number of units, number of bookings, likely possession date, whether they have applied for the project settlement policy which is effective till June 15, 2017, etc,” he said.

Developers assured the CEO that at least 12,000 residential units would be delivered to homebuyers within one year by the Amrapali group.

Speaking to TOI, Credai’s Anand said that the builders themselves were concerned about the negative sentiment in the real estate sector because of the long delay in handing over residential units.

“In the meeting we apprised the CEO of the number of flats delivered and those getting ready for delivery in the financial year 2017-18,” said R K Arora, CMD, Supertech group.

“We have also informed him that there is no delay in our projects,” Arora said.

“Supertech has delivered over 22,000 units in its projects in Delhi-NCR and adjoining states in the last three years and the company is all set to deliver 15,000 more units in this fiscal year,” Arora said.

The assurance was given to Prasad in a meeting he held with Getamber Anand, national president, Confederation of Real Estate Developers Association of India (Credai), and several other builders with projects in Greater Noida. The meeting was the second in the series of meetings Prasad has been holding after scores of homebuyers met UP chief minister Yogi Aditya Nath last month.
“The status of about 16 group housing projects was reviewed by the CEO,” said Janardan, additional CEO, GNIDA. “Builders were asked to submit a detailed report of each project including the number of units, number of bookings, likely possession date, whether they have applied for the project settlement policy which is effective till June 15, 2017, etc,” he said.
Developers assured the CEO that at least 12,000 residential units would be delivered to homebuyers within one year by the Amrapali group.
Speaking to TOI, Credai’s Anand said that the builders themselves were concerned about the negative sentiment in the real estate sector because of the long delay in handing over residential units.
“In the meeting we apprised the CEO of the number of flats delivered and those getting ready for delivery in the financial year 2017-18,” said R K Arora, CMD, Supertech group.
“We have also informed him that there is no delay in our projects,” Arora said.
“Supertech has delivered over 22,000 units in its projects in Delhi-NCR and adjoining states in the last three years and the company is all set to deliver 15,000 more units in this fiscal year,” Arora said.

Source- ET Realty

India Cements Capital to surrender NBFC registration

NEW DELHI: India Cements Capital Ltd, part of India Cements group, on Friday said it will surrender its registration for non-banking finance company to banking regulator RBI.

The board at its meeting held today "has considered and decided to surrender the certificate of registration as 'non- banking finance company' without accepting public deposits to the Reserve Bank of India", the company said in a regulatory filing.

India Cements Capital Ltd (ICCL) provides various financial services such as money changing and advisory on the forex market to exporters and importers.

ICCL's subsidiary India Cements Investment Services is into share broking activities. The company deals in cash market and futures and options, among others.

The stock closed at Rs 4.69 on the BSE today, up 4.22 per cent.

Source : ET Realty

Housing push, attractive price make Hudco offer a good bet

ET INTELLIGENCE GROUP: Investors hoping to benefit from the government's push towards affordable housing and infrastructure sectors can look to subscribe to the initial public offering of Housing and Urban Development Corporation (Hudco), a wholly-owned subsidiary of the Government of India.

The issue priced at an attractive 1.3 times the company's book value at the upper price range may bring long-term gains for investors, given the business model that is skewed towards state government spending and likely tapering of bad assets in the loan portfolio of Hudco.
Through the issue, which is in the form of offer for sale (OFS), the Government of India is set to reduce its stake in the company to 89.8%. Of the total issue size (20.4 crore shares), 36.2% is reserved for retail investors, including employees of the company , and the issue will be availed at a discount of Rs 2 per share on the offer price for these investors.
BUSINESS
Hudco, a miniratna, is in the business of financing housing and urban infrastructure projects. As of December last year, its outstanding loan book stood at Rs 36,386 crore with housing and infra segments accounting for 37% and 63% of advances, respectively. Since FY14, the proportion of housing portfolio has increased from 26% and it hopes to raise it further as it looks to partici pate in government schemes such as Pradhan Mantri Awas Yojana (PMAY) and National Urban Livelihoods Mission (NULM).
Although Hudco caters to private sector players and individuals (through Hudco Niwas), state governments and agencies account for the majority of loan sanctions (99.9% for 9MFY17). The board and management have since March 2013 decided to stop sanctioning of new housing and urban finance loans to private sector entities till an improvement in the credit risk of private players.
FINANCIALS
Hudco's loan book has grown at a compounded rate of 17% since FY14 based on annualised FY17 numbers. While net earnings grew at 7% CAGR between FY12 and FY16, for the first nine months of FY17, the profitability has moderated due to a jump in total loan provisions from Rs 129 crore in FY16 to Rs 280.5 crore.
The provisions were because ageing of non-performing assets, especially from the private sector portfolio which currently bears a gross NPA ratio of 5.98% as against 0.75% for loans made to state governments. With incremental sanctions to private sector having stopped since the past four years, the bad asset ratio and provisions could peak in the next one year.
RISKS
Slower than expected tapering of bad assets and related provisions is a risk that could dent the profitability going ahead.The traction in net interest income (NII) will depend on how efficiently the portfolio balance is shifted towards housing finance segment which typically has lower average yield compared to urban infrastructure loans. The resolution of loans to state electricity boards under the Uday scheme could continue to adversely impact the recognition of interest income from the exposure that accounts for 5.4% of the loan portfolio.

Source : ET Realty

You might not be able to file complaints on RERA website yet

PUNE: Consumers wishing to raise their complaints on the Real Estate and Regulatory Authority (RERA) website will have to wait till their developers register on the portal.

The RERA rules for the state came into effect from May 1, specifying norms for developers, real estate agents and the consumers. Given the fact that the existing projects have been given a time limit of three months to register on the website, the consumers have been left in a quandary.

Due to this, a lot of people have approached the Pune Grahak Manch, a consumer forum, with their complaints. The forum will take up all these issues with the RERA authorities and the state housing department.

“The aggrieved consumers can either register their complaints with RERA or the consumer court. If a developer does not register with the RERA website and seeks extension, the consumers will be left with no other option but to move consumer court, which already has a huge pendency of cases,” Vijay Sagar of Pune Grahak Manch said.

A consumer said his builder had illegally constructed 20 flats and even as the PMRDA registered an FIR against the builder and started work on pulling down the illegal floors, the builder managed to get a stay. “In such cases where will the consumer go?” he asked.

Another consumer said his developer had delayed the possession of his flat for three years. “Even the quality of construction was not up to the mark,” he alleged, adding that since his builder is not registered with the RERA portal, what shall he do now?.

Interim regulator Gautam Chatterjee told TOI that the developers will have to register with the RERA to allow consumers to raise their complaints on the portal. “Unfortunately, this is the rule,” he said.

Source : ET Realty

RERA ERA FINALLY ARRIVED

The unorganised nature of Indian realty is the sole reason why it had always been in the dire need of a regulatory authority which will now be available post the implementation of nationwide RERA from May 1, 2017. Several states and almost all the Union Territories have notified the laws of RERA before the said deadline of April 30th, 2017. RERA is something which is happening for the first time across the nation and would more or less be finalised along the framework which was set forth by the central government. RERA tends to bring about a new dawn in the sector of Indian realty and limit the concerns of several homebuyers and investors who had almost written off this sector which has seized to be one of the greatest employers and contributors to the country’s GDP. Slowly with the turn of clock, RERA would also settle down as any normal regulation similar to the hundreds we observe in our day to day life but the initial phase will definitely hold key to how better it is accepted amongst the developers and buyers. 

Industry Reacts:

Manoj Gaur, Vice President CREDAI – National & MD, Gaursons Group

At the outset, I welcome this much awaited initiative of RERA, which should bring huge relief to homebuyers as well as regulate the real estate sector of India. With the implementation of this act, now all approvals will have to be in place and the agreement signed with buyers includes the interest and the penalty clauses laid down in RERA. Also, the statute now demands that the builder should mention carpet area also specify common areas and the parking areas separately. At the CREDAI level too, the apex body of developers is holding training sessions for developers to educate them on the changes expected in the new business environment.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz

The buyers of property market in particular had waited long for RERA becoming a reality which guarantees safeguarding of their rights and interests. For long has this sector and its buyers being affected, but with RERA in place now, soon there will be a regulator in every state who will monitor all the transactions and have answers for their grievances. The amendments are fair and developers have already started working on the lines because these will now pave way for a better demand and supply in the sector. 

Avneesh Sood, Director, Eros Group

With RERA implemented in full scale now across major states and union territories, developers are sure to find it encouraging towards building a better image for the sector. Infact, most of the developers who are genuinely into real estate had already been following the rules which have been set forth by this act. With the government concerned and showing direct intentions towards the sector, RERA will enhance the sentiments in the sector paving way for growth. Possessions are the hot cakes in the sector today and history of a developer in the near future would be judged on the possessions they have offered.

Ashok Gupta, CMD, Ajnara India Ltd.

With so many states implementing RERA today, we will see a completely different scenario in the sector in near future. Infact, developers have been gearing up for RERA ever since it became an act in the parliament and have been working based on the norms excluding the limitations. These limitations, if some, can be done away with only when it is existent in the real scenario helping everyone understand them better and try devising corrections.

Pradeep Aggarwal, Co – Founder & Chairman, Signature Global 

Indian real estate sector will shape up in a different manner now. With RERA on board and implemented in full force, each state will have a regulator in place to safeguard the interests of the buyers and promote fair dealings in the sector. The housing demand in particular, will catch up momentum which will allow better performance of the sector. But, apart from everything else, the one thing that will infuse buyer sentiments in the sector will be of timely deliveries. 

Ashwani Prakash, Executive Director, Paramount Group

The regulatory act (RERA), has been able to arrest the uncertainty in the real estate sector, vis a vis the investors and end users. The mere passage of the bill had given a lot of clarity and made real estate dealings more transparent there by bringing the confidence in the investors and the end users.  Once this confidence sets in completely with it’s proper implementation, the market is bound to grow at a steady pace. Single window clearance system once implemented across the country will allow RERA to function smoothly, without which there might still be some barriers.

Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group

Developers are certainly well prepared for this change now with RERA implemented across several states. The impacts are certainly going to be visible for both buyers and developers soon. Developers who are not able to deliver on their promises would be automatically filtered out reducing the existing supply in the market, the sector would be much more organised than before and people would be answerable for what is being done at each stage of project development. Buyers on the other hand would be assured of timely deliveries or assured penalty charges in cases of delay but simultaneously would see the property prices going up because of the supply reducing drastically.

Rakesh Yadav, Chairman, Antriksh India

This act is aimed at protecting the interests of consumers, and also seeks to promote fair play in real estate transactions and ensuring timely execution of projects. With this act in place, every state will now have a regulator who will be continuously supervising and monitoring. Moreover, the projects will now be completed on time and developers will have to submit all the layouts, plans and documents with the regulator who will ensure transparency and hence, customers will feel more secure while transacting.

Gaurav Gupta, General Secretary, CREDAI - RNE

RERA is the biggest thing to happen in the Indian real estate sector and we hope that it will infuse 300% more confidence in the buyers to buy their dream home. This in turn will allow end users to create demand, but will take a while to get going and certain case studies to prove its effectiveness. This act will safeguard the interests of every buyer which will allow a transparent and secured route to transact in future. Once the Act becomes fully functional in each state, grievances will not remain unanswered, and will come with a definite solution. RERAwill open more sources of institutional funding for the sector as institutional confidence will also go up in the presence of a regulator. We hope that the teething problems in its implementation will sure be addressed by the government in a practical manner as the intentions of the government is very clear towards protecting the interests of the buyers rather than to strangulate the sector. 

Dhiraj Jain, Director, Mahagun Group

RERA’s prime motive is to curb the irregularities persisting in the real estate sector and protect buyers’ interest. There are strict guidelines in the act against developers who are unable to deliver on time. But we cannot deny the fact that developers today are under severe pain of not getting the obligatory clearances and approvals on time; and if this continues then they’ll be axed for no reason. Thus, the government must ensure the passage of single window clearance, so as to allow the sector to work in a much systematic and organised manner, with full support for RERA as well.

Vikas Bhasin, MD, Saya Group

For long has the sector’s buyers and stakeholders being affected due to the absence of a watchdog for the real estate transactions. But with RERA now in place, there will a regulator in every state who will monitor all these activities and have solutions for the problems of the buyers. Developers who had been working fair and square need not worry much about the circumstances post the implementation of the act because adhering to norms and guidelines is a general business practice and that is what RERA is all about, to ensure all norms and guidelines are followed.

 

Naidu to CMs: Implement realty law in letter & spirit

NEW DELHI: Concerned about the dilution in real estate regulation rules by states and in contravention of the central Act, Union housing minister M Venkaiah Naidu on Monday wrote to all chief ministers asking them to ensure that the law is implemented in “letter and spirit”.

Naidu has said that all incomplete projects will have to be registered with the respective regulator in each state by July 30.

TOI on Monday highlighted how states including Harayana, Maharashtra, Gujarat and Uttar Pradesh have diluted the central norms to keep most of the ongoing projects out of the ambit of Real Estate (Regulation & Development) Act.

“I am deeply concerned by some media reports that some states/UTs have diluted the provisions of some sections of the Act in the draft rules prepared. You would agree that the Act of Parliament has a certain inviolable sanctity and there can no such dilution of the provisions of the Act and the spirit of the Act,” Naidu wrote to states.

The minister said the Act has stipulated that promoters shall register all ongoing real estate projects (that have not received completion certificates as on May 1) with the regulator within three months from the day of the Act coming into force (by July 31, 2017).

“No new projects can be offered by developers to buyers without their registration with regulatory authorities. This, therefore warrants putting in place real estate rules, regulatory authorities and appellate tribunals immediately,” Naidu said in his letter.

On Monday, Chhattisgarh became the fourteenth state to notify the real estate rules.

RERA provides specific time frames to ensure necessary rules and regulations, regulatory authorities, appellate tribunals and other infrastructure are put in place so that buyers can have access to the authorities for seeking redressal of their grievances.

Section 84 of the Act required the states and the designated competent authorities to notify the real estate rules by last October and Sections 20 and 43 had stipulated that regulatory authorities and tribunals were set up by April 30.

Expressing his concern about little over half a dozen states notifying the rules, Naidu has said, “You would agree that this does not do justice to the concern and the spirit with which the Parliament passed this historic legislation.”

Source- Et Realty