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UP RERA notification to grant OC within 7 days will cover-up illegal malpractices of builders: Homebuyers forum

Questions UPRERA if it has safeguards in place to protect homebuyers against widespread complains of missing facilities and amenities, incomplete common areas and internal and external developments.

Vandana Ramnani @vandanaramnani1

Homebuyers have called for abrogating the UP RERA order that states that if the Noida Authority fails to issue occupancy certificate or raise objections within seven days of receiving an application from the developer, the realty firm can start offering possession to the buyers, as it would encourage 'prevalent malpractices'.

"They (builders) will be now able to cover-up their illegal malpractices by getting deemed CC/OC within 7 Days. And the helpless homebuyer will have to take possession of the flat or else pay interest on delay. It is denial of legal justice to the homebuyer," the letter written under the aegis of Forum for People’s Collective Efforts, said.

"This office order appears to be prima-facie erroneous and certainly not in the interest of homebuyers of the state. Hence, we appeal for withdrawal of the office order at the earliest before irreparable damage is done not only to the interest of home- buyers but also to the real estate sector since it is setting a bad precedent," the letter said.

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"We are of the considered opinion that the aforementioned order is a hasty notification issued without considering all facts and circumstances which may have adverse ramifications not only on the homebuyers but also on the entire real estate industry of the state," they said in a letter addressed to the chairman of the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA).

There have been widespread complains of missing facilities and amenities as promised; incomplete common areas; internal and external developments.

"What safeguards have been taken by UP RERA to protect homebuyers against such malpractices specially when deemed CC is being encouraged?," the homebuyers said in their letter written under the aegis of Forum for People's Collective Efforts.

The letter noted that as per Clause 6(1) of the order, if an Electrical safety certificate, Fire Safety Certificate, Structural Engineer Certificate and Lift Installation safety certificate and electric supply, water supply, sewerage lines, internal roads, water outlet have been ensured and the Competent Authority has not communicated within seven days of the application, CC will be deemed to have been issued.

But questions who would be responsible for verifying whether the promoters have complied with these minimum requirements before they get deemed CC? Also, these requirements as specified are neither as per local state laws nor as per RERA then is this notification not arbitrary and whimsical and also without any Authority under RERA, the letter said.

“It is difficult to comprehend how UP RERA can issue a notification to enforce provisions of State laws which are not in synchronization with RERA-16,” the letter said.

As per section 17 and also 19 of the Real Estate (Regulation and Development) Act, 2016 (RERA), promoters are required to obtain CC/OC (Occupation Certificate) and there is no mention of deemed CC/OC anywhere in RERA. The word which needs to be stressed upon is “obtain”, the letter said.

UP RERA has approximately 3,000 registered real estate projects with an equal number of unregistered projects. In view of such a large number of ongoing and new projects, how can it be expected that Authorities can issue CC within 7 days when the UP Urban Planning and Development Act, 1973 itself gives three months’ time for CC to be considered Deemed issued, the letter asks.

Also, UP RERA has seldom managed to complete adjudication of complaints within 60 days as prescribed under section 71(2) of RERA, it notes.

The authority has also failed to issue Recovery Certificates wherein promoters preferred not to appeal before Real Estate Appellate Tribunal even after more than 60 days have passed since the order was issued, the letter alleges.

"When UP RERA himself cannot adhere to timelines as prescribed for itself in recently enacted law, then how can it expect other Authorities to complete the job assigned to them within even three months as prescribed leaving aside within the reduced timeline of seven days," the letter said.

Besides, the onus of obtaining CC/OC is on promoters and under no provisions of RERA, the Authorities have been assigned responsibility for the same.

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First Published on Oct 4, 2019 05:10 pm
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