The article explains the role of the Gujarat Real Estate Authority in governing construction procedures in Gujarat
Due to a huge inflow of investment and a huge load of a population, the demand for commercial buildings and residential premises in Gujarat has catapulted. This is where Gujarat Real Estate Regulatory Authority (GujRERA) comes into action to legalise and meet the demands of the people.
In May 2017, the Gujarati government launched the GUJRERA (Gujarat Real Estate Regulation Authority) RERA portal. The Real Estate (Regulation and Development) Act of 2016 authorised the establishment of the GujRERA. The RERA Act Gujarat attempts to closely monitor the state’s real estate market and protect consumers’ interests. The online portal offers answers to questions regarding project/agent compliance, registration, the filing or resolving of RERA complaint, among other things.
What is the Role of the Gujarat Real Estate Regulatory Authority (GujRERA) in Gujarat?
Understanding the present market scenario and scope of business in the real estate sector, Gujarat Real Estate Regulatory Authority (GujRERA) has taken up a pivotal role. Following the Real Estate (Regulation and Development) Act 2016, the state government of Gujarat established GujRERA and entrusted them to promote and monitor the real estate development in the state.
To facilitate the development of this sector, GujRERA has taken up a few quick measures to enthuse the confidence of the buyers, and also the investors and property dealers. It has implemented a series of rules and regulations; and made them mandatory for all the stakeholders.
The Objectives of GujRERA: What Do You Need to Understand?
- It is expected to bring transparency and vibrancy into the system of building commercial and residential buildings
- Implement innovative, modern, and customer-focused property solutions.
- Establish and streamline excellent communication channels among all the stakeholders
- Ensure dissemination of accurate and authentic information regarding the status of the commercial or residential projects
- To expedite the process of buying and selling properties in Gujarat.
- GujRERA is also expected to ensure the grievance redressal process much faster.
- It will make the whole process of property buying and selling more efficient and hassle-free.
To deliver such responsibilities GujRERA has made it mandatory for all the property dealers and real estate agents to register themselves on its official webpage. GujRERA thus plays the role of a facilitator by bringing together all the stakeholders. At the same time, it brings efficiency into the system for the development of the real estate business in the state of Gujarat.
Role of GujRERA
- GujRERA manages and ensures the registration of all the real estate projects and also real estate agents
- It addresses Complaints Redressal mechanisms in the building market
- It provides guidance and necessary information of the concerned governing authority assigned to give the necessary guidelines and approval in order to carry forward the project
- It also hears the appeals placed in front of the Appellate Tribunal and takes decisions, directs orders to address the case lodged by the aggrieved party. However, if unsatisfied this party can reissue the litigation for further consideration.
- Such appeals have to be addressed on an urgent basis and the final decision will be made public within a period of 2 months.
Guidelines for the Property Dealers and Promoters: How Can GujRERA Help Them?
- Property dealers and real estate agents are liable to disclose the specific area or the plot on which the commercial or the residential project will be built.
- Without completing the registration process of the concerned real estate, no property dealers are allowed to advertise or carry out marketing or any other promotional activities. They are also prohibited to book or sell or engage in any kind of financial transaction related to the selling of concerning the property.
- All the buildings of an ongoing real estate project need to separately register themselves and no part applications can be entertained
- Before the commencement of the project, the promoter needs to meet all the compliances. Only after that, they will receive the completion certificate for their real estate projects
- Along with compulsory enlisting of the built-in property, GujRERA has made it compulsory for the property dealers to share quarterly updates regarding the status of the project.
- In case of any violation of the existing rules and regulations, the promoters will be liable to pay the penalty- which can mount up to 10% of the original property price.
- Recurrent failures to meet the norms will be treated as a punishable offence liable to pay a high financial penalty. It can also cause the imprisonment of up to three years, if not more
- However, they do not require to fulfill this criterion in case-
- The area of the proposed land on which the building will be constructed is not more than five hundred square meters;
- Or if the apartment complexes are not having more than eight phases;
- Or for carrying out the renovation or repairing work of the existing building. Even for re-development of the existing property, the dealers or real estate agents do not require to register their properties on the official page of GujRERA;
- Or, in case the promoters have already received a completion certificate for their particular real estate projects before this Act was commenced, they do not need to further register the property.
GujRERA will ensure the grievances and complaints regarding the violation of any rules or regulations are dealt with carefully and meticulously without delaying the actual process. Thus it plays the role of a facilitator by ensuring speedy redressal. GujRERA has restricted the amount that the promoters can ask for as advancement for booking fees for the flats. They cannot ask for not more than 10% of the original price of the flat as the down payment. Even for accepting that amount, the promoters need to sign a written agreement of sale.
What are the Basic Norms That the Builder Needs to Follow?
A majority of the allotment fees received from the prospective buyers, need to be deposited in bank accounts within a particular quarter. The term quarter here means at least a period of three months. Financial resources need to be deposited in authorized accounts to cover a large portion of the construction expenditure.
- Bank withdrawals can be done based on the progress of construction. However, while construction work is started progress monitoring needs to be done by a qualified engineer. Also, a project valuation needs to be done and professionals like Chartered Accountants are required;
- The builder should be able to compensate the buyers in case of any false promises being done. In that case, a full refund of the property fees needs to be given as the compensation amount;
- Each and every project account should be verified and audited copies should be generated with respect to a particular phase of work completion. Audited copies are to be submitted to GujRERA on a regular basis;
- A necessary legal Step can be taken by GujRERA on any kind of non-compliance or deviation. Such actions are to be taken absolutely at the discretion of the management of GujRERA;
- Bank accounts can be frozen by GujRERA at any point of time-based on any particular issue related to harming the public interest;
- Provision for stronger financial penalties for GUJRERA non-compliance;
- A provision is created on priority in order to cover all the clauses regarding the successful completion of the project.
Is GujRERA Citizen-Centric?
Remaining transparent to the public, GujRERA can is bound to
- Disclose public data on e-domains. Website based information needs to be accessible free of cost and this is to be allowed for all and sundry concerned.
- All documentation is verified by Gujarat Real Estate Regulatory Authority: https://gujrera.gujarat.gov.in/#/, therefore a sanctioned project can never incorporate any changes from the builders at will.
- Spelling out the date of possession, a builder cannot delay or defer. Compensation might be asked by the buyer in that case.
- Disclosure of detailed information by the builder needs to be valid. All necessary documents need to be handed over in favour of the client
- GujRERA aims to be a strategic partner to the citizens concerned and an unwritten law remains that total transparency is ensured at any stage of operation.
Conclusion:
GujRERA provides the right kind of governance concerning all the building activities of Gujarat. Such a nodal authority has been created to protect the rights of the consumers as far as the real estate industry is concerned.
Read More:
