Rera cannot exclude Projects that may be built on less than 500 sq m area but have over eight apartments from its purview was pointed out the consumer rights organization Mumbai Grahak Panchayat (MGP) to the Union ministry of housing and urban affairs.
While the Section 3 (2) of Real Estate Regulatory Authority (RERA) excludes registration of small projects that can be developed in an area of less than 500 sq m or less than eight flats, the consumer organization has written to the Centre urging it to make changes in the Act.
They have asked the word ‘or’ to be removed and be replaced by ‘and’, so that it would strictly be restricted to really small projects.
They pointed that the interpretation of the law by many developers has resulted in them taking advantage of ‘non-registration’, as they have plot area below 500 sq m but have constructed over 20 flats, which, defeats the purpose of the Act.
“While Rera insists on registration, the very purpose of the Act is defeated if the law is interpreted in such a way that inspite of the area being small, the developers have chosen to go higher. And if such projects are stuck, the consumers are the ones who suffer,” Shirish Deshpande, the chairman of MGP, said.
Recently, at a housing meet, officials from the housing ministry had announced that the government was working towards amending several provisions of Rera, which would benefit both developers and homebuyers. MGP was hoping that this proposal will be included as part of the amendments
Citing the Maharashtra Real Estate Appellate Tribunal’s judgment regarding a Pune-based consumer’s complaint where a project with 22 flats and nine shops was permitted, the consumer rights organization said such cases need to be brought to the fore.
The case went from MahaRERA authorities to the Maharashtra Real Estate Appellate Tribunal and as per members of MGP, it may soon go to the high court, if the consumers decide to continue fighting their case
“Before the case went to the appellate tribunal, Rera adjudicated members of the project liable for registration, by interpreting that both the conditions — area below 500 sq m and below eight apartments — be met simultaneously. The members had imposed a Rs 30 lakh fine for non-registration and directed the developer to register within two days. If the developer failed to do the same, there would be further penalty. However, the case went to the tribunal which stated that either of the condition be met, which again questioned how the Act was interpreted,” another member of the MGP said.
Source: ET Realty