APPLICATION OF REAL ESTATE PROJECT

APPLICATION OF REAL ESTATE PROJECT

Section 4 of Real Estate (Regulation and Development) Act, 2016 deals with the application for registration of real estate projects. According to section 4, every promoter shall make an application to the Authority for registration of the real estate project in Form ‘A’ in triplicate with applicable registration fee.

The promoter shall submit the following documents along with application registration:

a)   Brief details of his enterprise including its:
i.    Name;
ii.   Registered Address;
iii. Type of enterprise (Sole Proprietorship, Partnership, Company, Society or any competent Govt. authority
iv.   Particulars of Registration;
v.    Names and photographs of the promoters.

b) A brief details of the projects launched by him in the last 5 years, Whether completed or being developed; Current status of projects being developed; Any delay in its completion; Details of cases pending; Details of types of land and payment pending;

c) An authenticated copy of the approvals & commencement certificate from the competent authority obtained in accordance with the laws as applicable for the Real Estate Project mentioned in the application. If the Project is proposed to be developed in phases, an authenticated copy of the approvals & commencement certificate from the competent authority for each of the phases.

d)  Sanctioned Plan, Layout Plan & specifications of the proposed project or the phase & the whole project as approved by competent authority.

e) The plan of development works to be executed in the proposed project & the proposed facilities to be provided including:

    1. fire-fighting facilities,
    2. drinking water facilities,
    3. emergency evacuation services,
    4. use of renewable energy

f) The location details of the project, with clear demarcation of land dedicated for the project development along with its boundaries including the latitude & longitude of end-points of the project.

g) Proforma of the allotment letter, agreement for sale and the conveyance deed proposed to be signed with the allottees.

h) The number, type & carpet area of the apartments for sale in the project along with the area of the exclusive balcony or veranda areas & the exclusive open terrace areas apartment with the apartment (if any).

i) The number and areas of garage for sale in the project;

j) Names & addresses of the Real Estate Agents (if any), for the proposed projects.

k) Names & addresses of contractors, architect, structural engineer (if any) & other persons concerned with the development of proposed project.

l) Declaration in “Form B – Declaration, supported by an Affidavit, which will be signed by the Promoter or any person authorized by the Promoter” to be submitted by the Promoter

  1. that he has a legal title to the land on which the development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person;
  2. that the land is free from all encumbrances, or as the case may be details of the encumbrances on such land including any rights, title, interest or name of any party in or over such land along with details;
  3. the time period within which he undertakes to complete the project or phase thereof, as the case may be;
  4. that seventy per cent. of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose:

Provided that the promoter shall withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project

Further, the amounts from the separate account shall be withdrawn by the promoter after it is certified by an engineer, an architect and a chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project:

Provided also that the promoter shall get his accounts audited within six months after the end of every financial year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilised for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project.

The authority shall operationalize a web based system for submitting application for registration within 1 year from the date of its establishment.

Grant of Registration

Section 5 of Real Estate (Regulation and Development) Act, 2016 deals with the grant of registration. According to section 5 of the Act, the RERA authority shall within a period of 30 working days after receipt of the application for registration:

a) Grant registration subject to the provisions of this Act and provide a registration number, including LOGIN ID & PASSWORD to the applicant for accessing the website of the Authority and to create his own web page for public viewing and to fill therein the details of the proposed projects; or

b) Reject the application for the reasons to be recorded in writing, if such application does not conform to the provision of this Act.

Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.

If the Authority fails to grant registration or reject the application within 30 working days, then:

The project shall be deemed to have been registered under the Act; and the Authority shall, within a period of 7 working days after expiry of above said 30 days, provide LOGIN ID & PASSWORD to the applicant for accessing the website of the Authority and to create his own web page for public viewing and to fill therein the details of the proposed projects.

The registration shall be valid for the period declared by the promoter in affidavit to complete the project.

REVOCATION OF REGISTRATION

Section 7 provides that the Authority, on receipt of a complaint or suo motu or on the recommendations of the competent authority, revoke the registration granted after being satisfied that-

(a).  the promoter makes default in doing anything required by or under this Act or the rules, or the regulations made there under;

(b). the promoter violates any of the terms or conditions of the approval given by the competent authority;

(c). the promoter is involved in any kind of unfair practice or irregularities;

(d). the promoter indulges in any of fraudulent practices.

The registration granted shall not be revoked unless the Authority has given to the promoter not less than 30 days notice, in writing, stating the grounds on which it is proposed to revoke the registration and has considered any cause shown by the promoter within the period of that notice against the proposed revocation.  The Authority may, instead of revoking the registration, permit it to remain in force subject to such further terms and conditions so imposed shall be binding upon the promoter.

The Authority, upon the revocation of the registration,—

(a) shall debar the promoter from accessing its website in relation to that project and specify his name in the list of defaulters and display his photograph on its website and also inform the other Real Estate Regulatory Authority in other States and Union territories about such revocation or registration;

(b) shall facilitate the remaining development works to be carried out in accordance with the provisions of section 8;

(c) shall direct the bank holding the project back account, to freeze the account, and thereafter take such further necessary actions, including consequent de-freezing of the said account, towards facilitating the remaining development works in accordance with the provisions of section 8;

Pukhraj Malhotrahttps://www.lawordo.com/
Pukhraj Malhotra
https://www.lawordo.com/

(d) may, to protect the interest of allottees or in the public interest, issue such directions as it may deem necessary.

Written By: Pukhraj Malhotra 

A student of amity law school, having interest in media laws.

Add a Comment

Your email address will not be published. Required fields are marked *