Real Estate (Regulatory and Development) Act, 2016 is an Act of Parliament of India which seeks to protect homebuyers as well as help to boost investments in the real estate sector. The Act came into effect from 1st May 2016. All the Indian States adopted this Act completely except some of them and prepared a road-map of rules and regulations for the real estate industry.
The Real Estate industry has always been the most affected industry in India, sometimes due to natural calamities, because of unforeseen circumstances, due to some technical issues, because of some regulatory provisions, due to some builder’s false practices, etc., so is the case in Uttar Pradesh as well. With the successful implementation of the RERA Act, all the States implemented the Act in their State with adding to the chariot of RERA some or the other kind of rules & regulations or maybe in some modified version.
Recent Changes:
According to the recent Office order No.3206/UP-Rera…2019-20), dated 10th April 2019
Quarterly Progress Report (QPR)
- There is no need to pay any fees for the updating of QPR (Quarterly progress report) of First Quarter of Year 2019,
- Fees Rs.10,000/- per Quarter; need to deposit INR 10,000/- per Quarter for updating the QPR, if the updating is pending more than equal to two
Annual Audit Report (AAR)
- There is no need to pay any fees for the uploading of Annual Audit Report of Every year by December of Next Year,
- After 31st March 2019, facility for uploading AAR (Annual Audit Report) for the Assessment year 2018-19 without fee will not be available.
- Fees INR 20, 000/- per Annual Audit Report; need to deposit additionally INR 20,000/- per AAR for updating the AAR beyond the due date.
COMPLIANCES UNDER UP-RERA, 2016:
Under the Uttar Pradesh Real Estate (Regulation and Development) Act, 2016, the Uttar Pradesh Real Estate (Regulation and Development) Rules, 2016 effective from 27 October 2016 and Uttar Pradesh Real Estate Regulatory Authority (General) Regulations, 2019 effective from 27 February 2019 were enacted with Quarterly Compliances to be complied by the Builder/Developer under UP RERA, to ensure and eradicate the unforeseen circumstances by making the project and themselves as a compliant entity under the Act;
The Developer is needed to upload the following updates Quarterly on the webpage for the project, as mentioned under the above-mentioned Rules & Regulations within 7 days from the expiry of each quarter as mentioned in Chapter IV of the UP Real Estate (Regulation and Development) Rules, 2016;
The Developer need to update the details of the registration granted by the UP RERA for the prospective project;
- Construction of each building with photographs proof;
- Construction of each floor with photographs proof;
- Internal infrastructure and common areas’s construction with photographs proof.
A list of the total no. and types of plots/apartments/property, as the case may be booked in the project; List of the no. of garages/closed parking booked in the project; The developer has to update the status of the project for the following areas:
The developer need to update the status of the project for these:
- Approval received from the Authority;
- Approvals applied to authority & expected receipt date of approval;
- Modifications, amendment or revisions, if any, issued by the authority with regard to any license, permit or approval for the project
The Developer need to mention the address of the website in the advertisement or brochure or prospectus of the authority.
The Developer need to display at the booking time and issue of allotment letter to the applicant-
- Approved sanctioned plan, property’s layout plan with specification
- Stage wise time schedule of completion of the project including basic infrastructure facilities like water, sanitation, maintenance and electricity.
Penalty for Non-Compliance
According to the Section 61 of the Uttar Pradesh Real Estate (Regulation and Development) Act, 2016, if any promoter provides false information or contravenes the provisions of Quarterly compliance, he/she shall be liable to a penalty which may extend up to 5% of the estimated cost of the real estate project, as determined by the Authority.
Thus, it is always advisable for all the Developers/builders to keep their projects updated and complied, so that there is always transparency in the whole tenure of the project and the prospective allottees are timely informed of the status of construction of the project.