Improvement in opportunities and
the growing scale of economy in the country has elevated India to emerge as one
of the favourable destinations for carrying out business. This has led to rise
in the real estate sector as well. It is one of the major sectors dominating
the argo-based economy of the nation. With increasing Gross Domestic Product,
real estate has expanded the scope in residential as well as commercial arena.
Regulatory
framework governing Real Estate
In order to promote the real estate
sector and to ensure sale of plot, apartment or building, or sale of real
estate project, in an efficient and transparent manner to protect the interest
of consumers in the real estate sector and to establish an adjudicating
mechanism for speedy dispute redressal, the Government has enforced the Real
Estate (Regulation and Development) Act, 2016 (hereinafter referred to as the
“Act”). The Act has also established the Real Estate Regulatory Authority
(hereinafter referred to as the “Regulatory Authority”) and the Appellate
Tribunal to hear appeals from the decisions, directions or orders of the
Authority.
The monitoring of the issues
relating to real estate at the local level, each State has formulated its
independent real estate regulation and development rules.
Legally
Saleable
According the provisions of the
Act, no promoter shall advertise, market, book, sell or offer for sale, or
invite persons to purchase any real estate project unless a completion
certificate has been obtained certifying that the real estate project has been
developed according to the sanctioned plan, layout plan and specifications, as
approved by the competent authority under the local laws. [Section 3(1) read
with Section 2(q) of the Act].
In furtherance to the execution of
conveyance deed in favour of the allottees, the promoter of the real estate
project is required to obtain the occupancy certificate permitting occupation
of any building, which has provision for civic infrastructure such as water, sanitation
and electricity, as applicable as per local laws to enable handing over of the
possession to them. [Section 17 read with Section 2(zf) of the Act]
The promoter of the real estate
project is responsible to obtain the completion certificate or the occupancy
certificate, or both, as applicable as per local laws or other laws for the
time being in force and to make it available to the allottees [Section 11 (4)
(b) of the Act].
In the
news…
Considering the troubles faced by
the homebuyers, the Haryana Real Estate Regulatory Authority - Gurugram bench
has ordered the Town and Country Planning Department (hereinafter referred to
as “DTCP”) Haryana, to withdraw the Completion Certificate, or Occupation
Certificate, issued to projects that are yet to complete the development. [1]
The DTCP has been required to initiate an inquiry as to how such certificates
have been procured fraudulently. Show-cause notices have been issued to
such builders who have deceived to obtain the aforesaid certifications in
respect of incomplete projects. The regulatory authority has directed DTCP to
take disciplinary action against officers with whose connivance builders have
secured clearances.
Conclusion
With a view to safeguard the
interests of the real estate buyers, the Regulatory Authority of Haryana has
come forward with a pragmatic approach to take action against the developers
who have illegally obtained occupation/ completion certificate in respect of
projects which fail to meet the criteria of completion.
[1]
https://economictimes.indiatimes.com/wealth/personal-finance-news/withdraw-ocs-or-ccs-given-to-incomplete-projects-haryana-rera/articleshow/65624965.cms
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