Views of Mr.V.Swaminathan on RERA

RERA – Central Code/Rules v State Rules -Irresolute Conflict !

An UPDATE (Apropos of Previous BLOGS, Posts on Linkedin, to reiterate)

Varying Defn. of “Ongoing Projects” for registration – All In A Mess ?!

In other words, briefly stated, the following two points of the dispute could arise, even at the inception. That is, Whether, for meeting the requirement of registration, the project has to be taken as an ‘ongoing project’ or not.
Better stated :
1.Whether promoter has to act in accordance with what the Central RERA provides; or what the state enactment says, in case the respective conditions are at variance or materially incompatible /divergent?
2, Should the promoter (or authorized external certifier) be faced with genuine ambiguities or inadequacies in the Rules, posing difficulty in understanding and complying with the state enactment, that too on all fours, what is the possible expeditious recourse open, for an acceptable and satisfactory resolution of the stalemate!

Similar problems could arise even after the registration, in respect of compliance with some of the other procedural requirements gravely wanting clarity; for example, issuance of phase-wise OC / CC as envisaged,
The concept of OC/CC by itself, mandated as a sine quo non, – besides under the GST Code for levy of ‘service tax’ on ‘deemed works contract’- is, even otherwise, if critically viewed, a shallow or hollow formality, a deceptive  paper tiger -from a strict practical /utility viewpoint-, suffering from inherent infirmities. In other words, going by wisdom gathered in hind sight /past experience, the mandated requirement has proved to be nothing but a socioeconomic /-psychological ploy of its kind, foisted upon, simply for the heck of it /bureaucratic fancy or fantasy, ultimately serving no real purpose of the buyers-consumers’ benefit.

KEY Note: Apart from the imponderables under discussion, -with reference to the unanswered (or  -able) questions  on the Rules governing ‘ongoing project’- if not mistaken, likewise, Not- so Frequently- Asked – Questions, but  begging for answers / resolution, concern the significantly varying formats for ‘Agreement to Sell’ prescribed by States, in comparison to the Model prescribed by the Centre. 

TAIL Piece:
Ref. “Mohan and the advocates on the panel highlighted the following aspects:….”

EXtracts (selectively, with own comments supplied- inset):

  1. “A promoter cannot accept more than 10% of the sale value from a buyer unless a sale agreement is registered, but a sale agreement is not really required under the RERA Act.Other points of conflict between RERA and existing Acts may come up, which can only be resolved in time.A proposal to revise the Karnataka Apartment Ownership Act in light of RERA is also being considered.” (FONT supplied)
  • ¨     RERA is a Regulatory Act, not a complete code by itself. Guess that the reference is to ‘agreement to sell’, not ‘conveyance deed’. If not mistaken, the Central so also the States’ RERA Rules do prescribe the standard format for ‘Agreement to Sell’ – though not for sale (conveyance) deed, requiring to be executed.
  •    If heard right (open to correction), the authority in his televised interview, made a mention of repealing MOFA under contemplation (not of revising MAOA); and, have in place, a new legislation, to take care of the aspect of ‘title’ to the buyer.

Even otherwise, in such matters of vital – not just procedural but of substantive- nature, the provisions of the special state (S) enactment (s) governing flats/apartments should apply and, with no option open,  be complied with.

To reiterate own viewpoints stressed often before, and re-share, what MAHA had done in repealing the MOFA is a misconceived step. For, in respect of all those areas not specifically covered in RERA, the provisions of both MOFA and MAOA might have to be necessarily be referred, relied upon, and applied.

  1. “The confusion between Completion Certificate and Occupancy Certificate was clarified. When a construction is completed, a Completion Certificate will be issued. An Occupancy Certificate will be issued after utilities (water, power, sewage lines) are provided. The Act applies to ongoing projects only; projects that have obtained Completion Certificates before RERA was implemented, are exempt.”
  • ¨    No clue as to who or when has clarified so, and in what context! Anyway, the purport or import thereof is far from being understood readily. So far as one is aware, the two terms have been in use, in certain limited quarters, but interchangeably, perhaps unwittingly.
  •    Be that as it may, formal ‘conveyance’ and registration of  (Sale) of flat or apartment to buyer(s) , so also the final conveyance to CHS or ‘Owners’ Association’ of the entire property, including land and building(s), as envisaged and required by the above referred state enactments, for obvious reasons, could not conceivably be at any point in time earlier than the development has been completed , in all respects, so as to be given possession, and actual occupation .
  1. “RERA will not apply to projects that are already 60% registered and construction is complete. Some argued that this 60% rule is diluting the Act. There is no relief for the remaining 40% of buyers whose flats have not been registered and the builder is creating trouble.”
  • The referred 60% rule, it appears, – or corresponding rule of any other State, – is highly debatable, on more than one ground; not only on the ground of it having diluted the provision in the Central rule. To hint at Arbitrariness in doing so, with no rhyme or reason, and being contrary to the Central rule, Problems (inherent) in implementation, so on.

(OPEN /Invite Experts in field practice, with a direct exposure and experience, to eminently Edit, for enlightenment, in a better light, for the common good. For doing so, suggest to look up /cross refer the analytical study of MOFA and MAOA earnestly attempted and the personal viewpoints faithfully shared and available in public domain – See the Previous Blogs, websites, etc.; And a published Article here-   LAW vs CASE LAW ON FLATS  2014 (3) Kar. L.J. pg. 1 to 25 > 48  )

MORE Articles (Related – displayed on  Lci and elsewhere) >

ADD-on : Here is a video interview , just one in a series of those, @;which makes for an interesting  exposition by a topmost state RERA authority, in Maharashtra, of what is the expectation by the government under the law,  of the ‘promoters’ of ongoing projects,  with regard to compliance with the mandates of registration, etc. As seems to have been admitted, there are ‘grey areas’, not unlikely to pose challenges, if and when met with. If so, the positive indication seems to be clearly that the implementation and strict enforcement of the RERA – central or of the state, in its present form/structure- , more so in favor of the consumer- buyer , especially in all cases, within the rigid time frame for completion /possession as envisaged by the RERA , by itself, might pose peculiar problems, not possible to be resolved as expected, expeditiously.. This , so also the many other aspects (such as,  OC x CC* , MOFA, etc.,)  briefly touched upon, in one’s firm conviction, call for further insightful deliberation, and prudent /incisive consideration, by one and all ,-not barring the law experts/pundits, at large,-  having common but serious concerns, about the eventual success at least in the most  crucial of the aspects, galore. 

On the explanation as to why “OC’ , not “CC” was prescribed as the sine qua non for registration, its validity calls for in-depth deliberation /review. For this purpose, – apart from the viewpoints shared and canvased  in the above referred published material, – the special definitions in the RERA,  of  the terms of relevance,  – “Completion Certificate” and “Occupancy Certificate”, so also of  “Development works”, “External / “Internal -development works”, ought to be taken a conscious note of.  Prima facie, the said definitions suffer from certain deficiencies, on account of overlapping in certain respects. Nonetheless, in one’s conviction, based on a conjoint / harmoniousness reading, and incisive understanding, of the underlying scheme of things, in toto, there appears to be no rhyme or reason, or sound logic, for MAHA or any other state, in excluding, in violation of /deviation from the Centre’s RERA Rules, from the purview of  registration of all such other ongoing projects having no “CC”.   



The recent rains in and around Bangalore has significantly validated the NGT`s order regarding the buffer zone and the distance to be maintained from the lakes, Raja kaluve, and other water bodies.

But, some vested interests pressurised the Government to plead in the Supreme Court of India against the sensible order of the NGT, and the ill effects of such pleadings will have an adverse impact on the home buyers during nature`s fury.

Kengeri received more than 100mm of rain in 5 hours yesterday resulting in the water flow in the low lying areas.  The vrishbhavathi river is in full spate and the adjoining apartment complexes and illegal layouts are flooded.

There are apartments complexes by the side of this river, which is highly polluted with toxins, flow during the monsoon without any smell and during the summer, a stink raises from this river results in respiratory health problems, but the sellers/owners/builders are not bothered and MARKET THESE PROPERTIES WITH FANFARE.

A leading builder`s leading complex is very close to the river on Mysore road and it is heard that 75% of this mighty residential complex is SOLD.  A compliance report from the BBMP might be sought at the time of issuance of OCCUPANCY CERTIFICATE for this project. The buyers might face issues with such projects.

In, Bangalore east, the most thickly populated area is kaggadasapura and surrounding areas have apartment complexes with abnormal deviation and have encroached all the ditches, channels, sewage flowing channels, Raja kaluve and secondary channel, results in flooding.  The Raja kaluve in these areas have disappeared.

Even, in the areas, where there is no flooding, due to water stagnation, the foundation of the apartment complex has become very weak, which is very dangerous and is not suitable for living.

It is natural for the rain water to flow through the natural gradient formed thousands of years ago and it is the nature`s law, but, by constructing houses across such rivulets, channels, water bodies and low lying areas, naturally brings in the storm water during heavy rains.

While choosing the property, many factors like these have to be kept in mind.



RERA-Rules cannot be diluted-Center to States

The Ministry of Housing and Urban Affairs has asked the states to amend or formulate rules of the Act in consonance with the spirit of the central Act. “Right from the beginning, we have been telling all the states not to dilute the Act.

In a report tabled in Parliament earlier this month, the committee on subordinate legislation, headed by BJP MP Dilipkumar Mansukhlal Gandhi, has asked the state governments to take all possible remedial measures to ensure that ongoing projects are brought under the ambit of the Act so as to extend the stipulated benefits of the RERA to home buyers.

The committee has directed the ministry to ask the state governments to amend or formulate the rules under RERA in such a way that there is no ambiguity regarding the definition of “ongoing projects.”

Haryana and Uttar Pradesh have decided to keep outside the purview of the RERA projects that have been issued, or applied for, occupancy certificates. This is a significant difference from the central RERA notified on May 1 this year that had completion certificates as the benchmark for exemption.




MahaRERA order- builder told to return Rs 26L to consumer

The Maharashtra Real Estate Regulatory Authority (MahaRERA) on Wednesday asked a builder in Mumbai to return an advance amount of Rs 26.15 lakh to a consumer -the first such order since the real estate law came into effect in the state on May 1.

The deadline for registering all ongoing projects in the state with MahaRERA ended on July 31. Since then, the authority has registered over 13,000 projects -the highest in the country.
The authority has so far received more than 98 complaints. On Wednesday, it issued its first order in a case registered by the consumer from Khar against the developer for the project in Virar (West).

MahaRera authorities said the complainant had booked the flat in 2012-13 and was assured by the developer that the project would be completed in 2016.
The case was filed as the complainant wanted to cancel the project and the builder to reimburse the signing amount as the building was not completed, the authorities added. The complainant approached RERA authorities and the order was issued in his favour, an official said.

The complainant said that he was happy with the RERA authorities for resolving the case fast. “We are extremely happy that MahaRERA ruled in our favour and the developer immediately issued the cheque following the order,“ said the complainant, who was present at the MahaRERA office with his spouse. The consultant had filed the complaint on the MahaRERA website by paying Rs 5,000.
RERA authorities said the builder agreed to pay the money to the complainant after three hearings by the MahaRERA authorities. “Consent terms were filed by both the parties and the developer agreed to return the amount. accordingly, he got the cheque. The complaint was heard before adjudicating officer B D Kapadanis.
He added that this was first decision taken after MahaRERA was constituted and the maiden order was a proconsumer one. The order issued by MahaRERA stated that the parties have amicably settled the dispute and filed their consent terms.
Mumbai Grahak Panchayat (MGP) chairperson Shirish Deshpande said they were expecting more consumers to register their grievances against developers registered with MahaRERA.“We have to wait and watch,“ he added.
Credai-Maharashta president Shantilal Kataria said the builders’ response to get registered with MahaRERA was encouraging. “At least 17 lakh residential units, over 1 lakh commercial units and above 2 lakh plots have been registered with MahaRERA.This is among the highest in India. We expect more developers to register soon,“ he said.



The Karnataka State Natural Disaster Monitoring Centre has forecast heavy rains in many parts of south Bengaluru.

Bengaluru receives an average rainfall of 211 mm in September. However, in the first six days, the city has seen rains measuring 200 mm. Over the past 24 hours, 1.5 cm rains lashed the city. Weathermen state that Bengaluru is likely to cross the monthly average this year.

During the monsoon months of June, July, August and September, the city receives an average 580 mm rains. This year, the city has already received 638 mm, with 355 mm received in August.

Precautionary measures

The BBMP has issued an advisory to citizens to prevent the spread of communicable diseases, such as leptospirosis, cholera, typhoid and hepatitis.

Citizens have been asked to drink boiled and cooled water, consume fresh food, keep food items covered, wash fruits and vegetables thoroughly before eating them, wash their hands and feet with soap and cleaning water tanks every fortnight.


The Meteorological department has said that monsoon will hit the state today (Tuesday).

It further said that “On Tuesday, monsoon will hit many parts of the state and many areas will receive moderate to heavy rainfall. The effect will stay until September 10. Many parts of the city will also receive an adequate amount of showers,” said Dr. GS Srinivasa Reddy, director of the Karnataka State Natural Disaster Monitoring Centre.

Civic authorities have been put on high alert to face any eventualities of flooding.


The debate on the demonetisation success is not as expected by the citizens and the press, but certainly, it has demoralised and demolished 75% of BLACK MONEY in the real estate market of Bangalore.

75% of the end users(sites or apartments) are loaners!!!! ( borrowers) and the RERA bombed all irregular, illegal and violators (builders) and their criminal designs.

The first buyers ( from the original landlords ) are now making payments through cheques/dd and neft to the agriculturists and all the Misc expenses are accounted for by paying income tax and GST.

There is a drastic change in the behaviour, attitude and transaction in REAL ESTATE.  Many builders and agents are unable to register themselves with RERA.

Hope, market will stabilise with decent, dignified and honest builders, but it comes with a PRICE.  Honesty and Trust come with a PRICE.  

Buy or pay for RERA approved projects and transact only with GENUINE Agents ( check their background for criminal cases in the police station and in the courts ) for the purchase or sale of any property, anywhere.

Never trust sweet talk in real estate business.  Posh Offices, Sweet looking attenders and their projects just by photos, More important by internet reviews (most of them are manipulated) and references.  Check thoroughly before you pay the token advance.