On Thursday, 4th May – 2017 Gujarat Government notifies RERA rules which are third and final set of rules. This rules are mandatory to be notified by each state and union territories as per The Real Estate (Regulation and Development) Act, 2016 (RERA). Said comes in to force with effect from 1st May – 2017.
Rules also made clear that it is applicable to all ongoing projects which have not received completion certificate as on 1st May – 2017.
What is RERA all about?
The Real Estate (Regulation and Development) bill was originally introduced by UPA government in 2013, then after several modifications and amendments based on the suggestion received from stakeholders it was finally passed by Rajyasabha on 10th March – 2016 and by Loksabha on 15th March – 2016 and then received the assent from President.
The question comes here is why there is requirement of such regulation? Today when we buy small sim card then there is regulating authority called TRAI, when we buy small insurance policy then we have regulating authority called IRDA, when we trade on stack exchange then there is regulating authority called SEBI, when consumer invest life saving in buying any property then there must be some regulatory authority which protects the interest of consumer. That’s why there is requirement of such authority and then RERA comes in the picture.
What are the provisions of Gujarat RERA Rules?
Lets look at the one of the provision of Gujarat RERA Rules, following details are mandatory to be published on the website of the promoter / developer
A. Details of Promoter:
Brief details about promoter like Name, Registered Address, Type of enterprise, Brief details about parent entity its Name, Registered Address, Type of enterprise etc.
Educational qualification of promoter, working experience. In case of new entity details of parent entity needs to be given.
Name, address, contact details and Photograph of promoter in case of individual or of chairman, director, partner as the case may be.
Track record of promoter: Number of years years of experience in the real estate business in the same state/ UT and Number of years years of experience in the real estate business in the other state/ UT. Number of completed and ongoing projects with area of construction.
Litigation: details of litigation in past five years in relation to real estate projects developed.
Website link to group website and link to project website.
2. Details of real estate project:
Compliance and Registrations: Authenticated copy of commencement certificate, details of registrations granted by authorities. Sanctioned plan, Layout plan and specification of phases.
Details of number, type and carpet area of apartment; number, type and are of garage and open parking space.
Name and address of registered agents
Details of consultants including name and address of contractors, architect and structural engineers and other concerned persons. Names and Profiles completed are also to be shown.
Location: Exact location of project with demarcation of land, boundaries and with latitude and longitude.
Development Plan: Details to be published on the website development plan and the proposed facilities to be provided like Fire fighting facilities, drinking water facility, emergency evacuation services, use of renewable energy etc. Details of amenities to be provided are to be shown. Gantt Charts and Project Schedule to be published.
C. Financials of Promoters:
PAN Card Copy of promoter, Completed audited financials of preceding three years including audited Balance sheet, P&L, Cash Flow, Directors Report, Audit report. In case of new entity details of parent entity needs to be published.
D. Details to be uploaded every quarter:
Details of Number, Types of apartment or plots or garage booked.
Status of construction of each building with photographs, status of construction of each floor with photographs, status of construction of common facilities, internal infrastructure with with photographs.
Details of approval received, approval which are applied and expected date of receipt, approval to be applied in future and planned date for application,modification / revision if any issued by competent authority.
E Downloadable content
- NOC certificates: Consent to establish, Enviroment clearance, Fire NOC, height clearance from AAI.
- Authenticated copy of licence to use land, Building sanction plan, layout etc.
- Authenticated copy Site plan or site map showing the location of project along with survey numbers, khasra numbers, names of revenue estates of each parcel of land.
- Floor plans of each tower along with plan of clubhouse, amenities and other common areas.
- Permission, approval, licence required as may be required as per competent law.
- Authenticated copy of occupancy certificate and completion certificate including its application.
- Details of proforma application form, allotment letter, agreement for sale and conveyance deed.
- Authenticated copy of legal title deed showing title of promoter in land.
- Land title search report from advocate having experience of at least 10 years.
- Details of encumbrances on the land on which development is proposed.
- Where promoter is not owner of land then details of collboration agreement, development agreement, joint development agreement as the case may be entered in to by promoter with the owner of land.
- Sanction letter from bank for construction finance and home loan tie-ups.
F. Contact Details:
Contact detail including contact address, contact numbers and email ID of promoter and other officials handling the project.
G. Any Other Information:
Such other information as required by act or rules or regulations made there under.
So these are the huge list of details which are to be published on the website as per the RERA Rules. Thought comes to mind that whether this will lead to ease of doing business? but second thought comes that by providing this many information will definitely adds transparency and trust among consumers. Many fraudsters have to think ten times before starting real estate project.
You may give your feedback or ask questions on Gujarat RERA Rules at comment section