RERA Rules- Real Insights by RealDocs : Part 3
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In RERA Part 1 and RERA Part 2, we had covered RERA rules of four states, namely, Karnataka, Maharashtra, Haryana, and Telangana. Some more states are explored in RERA Part 3. Let’s take a look at the analysis done for Madhya Pradesh, Punjab, and Rajasthan:

MADHYA PRADESH RERA RULES (MP RERA):

  • Additional Documents: Under MP(Madhya Pradesh) RERA, there are additional documents asked for registration i.e. information relating to the proposed development of a building, the number of car parking areas, declaration by the Builder stating that there shall not be any discrimination against any allottees.

 

  • Ongoing Projects: Under MP(Madhya Pradesh) RERA, ongoing projects which come within the ambit of registration are the same as given under the RERA Act; with no dilution on the registration criteria.

 

  • Agreement for Sale: Performa of the Agreement has been notified with clear clarification that any allotment letter, application or any other terms signed by allottees before entering into Agreement for Sale,  will not affect the allottees’ rights and interests protected under the Agreement for Sale.

 

  • The Rate of Interest: MP(Madhya Pradesh) RERA has fixed the rate of interest payable by the promoter and allottees as the highest lending rate of the State Bank of India plus two percent.

 

  • Timeline for Refund: The timeline for a refund from the promoter to the allottee is forty-five days from the date of claim.

PUNJAB RERA RULES:

  • Definition of a Partial Completion Certificate: Punjab government has added the definition of ‘Partial Completion Certificate’ as a certificate issued by the Authority for a particular project area or block.

 

  • On-Going ProjectAll Projects where development work is in progress shall come within the definition of “On-going Projects”. However, it excludes those portions or blocks where partial occupancy certificate has been issued.

 

  • Super Area: This means the gross covered area of the building which allottee shall use by sharing with other occupants of the project such as the lobby, entrance, common toilets, lift shafts etc.

 

  • Additional Documents: In addition to project and promoter details as required in other states, there has to be a submission of a “No- Encumbrance” certificate from the revenue authorities not below the rank of Tehsildar through an advocate having ten or more years of experience.

 

  • Performa of Agreement: Under the performa agreement, it is categorically mentioned that any addition and/or alteration which exceeds 5(five) percent of the sanction plan requires the consent of allottees.
  • The Rate of Interest: Punjab RERA has also fixed the rate of interest payable by the Promoter and the allottee to be the highest lending rate of State Bank of India plus two percent.

 

  • Timeline for Refund: The timeline for a refund from the promoter to the allottee is ninety days from the date of claim.

RAJASTHAN RERA RULES :

  • Definition of Limited Common Area and Facilities: Rajasthan RERA has added the definition of ‘Limited Common Area and Facilities’ which means it is an exclusive area used by certain apartment owners.
  • Discrimination Rules: Rajasthan specifies in their rules that there should not be any discrimination on allotment based on sex, caste, creed, color, religion, etc.
  • Ongoing Projects: Rajasthan RERA has its own interpretation for Ongoing Projects, which are projects where development is ongoing and for which completion certificate has not been issued but excludes projects:
    • Where common areas and facilities have been handed over to the association of allottees for maintenance;
    • Where sale deeds for sixty percent of apartments in the Project have been executed;
    • Where development works have been completed and completion certificate has been obtained from a chartered engineer as per prevalent Township Policy;
    • Where completion certificate has been obtained or application has been filed with the authority;
    • Where development is done phase-wise, then each phase is considered as a separate project and if it full fills the criteria of exemption;
    • Where authority has issued lease deeds for plots in township schemes; or
    • Where services have been handed over to the local authority for maintenance or more than fifty percent of the development charges have been deposited to the local authority.
  • The Rate of Interest: Rajasthan RERA has also fixed the rate of interest payable by the Promoter and the allottee to be the highest lending rate of State Bank of India plus two percent.

 

  • Timeline for Refund: The timeline for a refund from the promoter to the allottee is forty-five days from the date of claim.

 

  • Penalties: In Rajasthan RERA the penalties have been reduced from ten percent to five percent of the estimated cost of the Project for non-registration of the Project or violation of laws or false representations as compared to the RERA Act.

 

We hope this series could help you understand the latest RERA Act from the Indian government and you could easily compare the RERA Rules framed by different states in India. We will soon be coming up with our fourth series [Part #4], where we will be covering other states. Stay tuned!

 

If you are planning to buy a property sometime soon, RealDocs has created a mobile app that aims to help you determine what documents are required for a particular property based on the type of property, and most importantly, the applicable laws of your state.  Feel free to download the RealDocs app from the Google Play Store, by clicking here.

RealDocs Team