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  • RERA Applicability and Occupancy Certificate

Hi, I have shortlisted a flat in Electronic city Phase 1, property name "Alps Pleasanton". However the builder does not have RERA registration number, when asked he is saying RERA is not applicable.
Also he claims to have received the Occupancy Certificate and has sent a screen shot of the same issued by BDA on 28th Aug 2018. Can you please advice is this possible without a RERA registration and is it ok to go ahead with the purchase?
Asked 7 years ago in Property Law
Religion: Hindu

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17 Answers

if OC was issued prior to coming into force of RERA on 1.5.17, then RERA is not applicable

if OC was issued after RERA came into force then the builder was required to register the project with RERA 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

1) Builder is able to build and complete project without RERA but you do not purchase flat without RERA number.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

The Real Estate (Regulation and Development) Act 2016 which came into force in total by 1st May 2017 have very specifically provided under Section 3 (1) that  No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act:

 

2) since OC is issued in August 2018 builder ought to have registered project with RERA 

 

3) dont purchase the property 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Dear Client,

Only under construction and fresh projects require RERA registration. Any project completed before July 10, 2017dose not require RERA registration.

 

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

it is not necessary that every under construction project is falling under the purview of RERA. As per the RERA rules formulated by most of the state Governments, if builder has applied for or obtained occupancy certificate from state authorities, then builder is not required to get the project registered with RERA Authority as such project doesn’t fall under the definition of Ongoing Project.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Hi,

If a Project has received Occupancy Certificate that Project is exempted from RERA Registration. Hence, RERA compliance is not needed for the Project but before buying Legal Due Diligence (Property Document Verification) is a must. You should get Property Verified from a good lawyer.

Archana Shukla
Advocate, Bangalore
26 Answers
1 Consultation

Rejected on what ground ? This is important. It may be as no registration required or details of project against building by laws.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

we cannot speculate as to why application has been rejected . 

 

visit RERA office to find out reasons for rejection 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Yes, the paper work of project is not according to RERA.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, toregister with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution.

Ongoing projects which have not received the occupancy certificate from local authorities will come under the purview of RERA. The real estate (regulation and development) Act, 2016 (RERA) is set to become effective across all the states from 1 May 2017

Builders rush for Occupancy Certificates to duck the new Real Estate Act

A plausible reason could be that they may not wish their on-going project to fall under the purview of RERA, which is set to become effective from May 1.




All those projects which have not received the OC prior to the commencement of the Act will come under the purview of the Act. For projects where the OC has already been issued, the developers need not go for its registration. 

If you still feel that there is some problem with this you may get a legal opinion to this from a local lawyer and proceed if recommended.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

In case the builder fails to provide such information, his application is liable to be rejected by the state authority. “The rejection of application for project registration or cancellation or revocation or suspension of the project registration lead to the same situation.

In a landmark order in the Bikramjit Singh versus M/s HP Singh case, the PRera held that complaints against promoters in relation to the projects that are not registered with the authority will not be maintainable before it. In the same order, the authority also cleared the ambiguity regarding the maintainability of any complaint where the alleged builder violations took place prior to the commencement of the Real Estate (Regulation and Development) Act (Rera Act). It laid down three conditions that must be fulfilled for such complaints to be considered by it. Firstly, the alleged violations, though commencing before the enforcement of the Rera Act, must be continuing till date; secondly, the alleged violations must also constitute a contravention of the Rera Act and the rules and regulations made thereunder; and thirdly, the issue should not have been decided or be pending in any forum/court before approaching this authority. This is necessary to avoid multiplicity of litigation. The order reads, “Only if all the three conditions are fulfilled, and the onus would on the complainant to prove these, would any alleged violations that took place before the coming into force of this Act (Rera Act) be considered by this authority”.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

yes there must be some deviation that is why his application has been rejected 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

I would not advise you to purchase the said property or else before purchasing the same ask some local lawyer to make a title report for you

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

If OC is after 2017 then it has to be registered under RERA if not registered then there is some issue you can check why it was not registered.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Sir the reason of such rejection need to be known as on what ground his application was rejected. As it will not be wise to purchase flat from such project.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Dear Sir,It is better to purchase a property a property which is found on RERA website. When rejected there might be several issues. If you have paid any advance then get it back by issuing a legal notice. For mental torture you may file case before the Consumer Court.

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

Rera is not applicable only if the project is of lesser area i.e. less than 500 sq meters or the building has less than 8 apartments.

 

There is a certain classification of RERA matters based on the condition of the project, they are as follows:


  • New Project: As per RERA Act, any project now to be started needs to get RERA registered with all its relevant documents and detail of the persons in charge of the project fulfilling all the legal conditions prescribed by the Act.

  • Ongoing Project: The projects which are in an ongoing status at the time of implementation, they also require to get registered, otherwise, as per Sec. 3 of the Act, they shall not receive the completion certificate.

  • Small Projects: If the project covers an area less than 500 sq meters or the building has less than 8 apartments, then such building does not require to get RERA registered.

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

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