The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, was enacted to bring transparency, accountability, and efficiency to the real estate sector. In Haryana, the Haryana Real Estate Regulatory Authority (HRERA) has taken significant steps to implement and strengthen this Act, ensuring better compliance and safeguarding the interests of homebuyers. Recent amendments and the authority’s proactive actions have made headlines, especially concerning some major developers and buyers.
Recent Amendments in the RERA Act in Haryana
In response to evolving challenges in the real estate sector, Haryana has introduced notable amendments to the RERA Act:
- Digital Transparency and Reporting:
- Builders are now required to submit quarterly updates on project progress on the HRERA website. This includes financial disclosures, construction timelines, and compliance statuses.
- Buyers can access these updates online, ensuring greater transparency.
- Escrow Account Strengthening:
- Amendments mandate stricter monitoring of escrow accounts to ensure that funds collected from homebuyers are utilized exclusively for the intended project.
- Enhanced Penalties:
- Non-compliance with RERA provisions now attracts heavier penalties, including suspension of licenses and criminal proceedings in severe cases.
- Extension Rules for Projects:
- Developers seeking project deadline extensions must now provide valid, uncontested reasons with documentary proof. Arbitrary extensions are no longer permissible.
- Protection for Buyers:
- Provisions have been added to address delayed possession, empowering buyers to claim compensation or exit agreements with interest reimbursements.
- Inclusion of Real Estate Agents:
- Agents must register under HRERA and adhere to the rules, ensuring ethical practices in property dealings.
Actions Taken by HRERA Against Big Builders
Haryana RERA has been proactive in taking action against errant developers to protect the rights of homebuyers. Some notable examples include:
- DLF Limited:
- HRERA has imposed fines on DLF for delays in handing over possession in projects like “DLF Garden City” in Gurugram. Complaints from buyers regarding incomplete amenities and delays prompted strict penalties and refund orders.
- Unitech Limited:
- Unitech, once a prominent developer, faced multiple penalties and directives from HRERA for projects like “Unitech Residences” and “Wildflower Country” due to severe delays and misuse of funds.
- Emaar India:
- Emaar has been directed to expedite delayed projects such as “Emaar Palm Hills” in Gurugram. HRERA ordered compensation for buyers and strict adherence to updated project timelines.
- Raheja Developers:
- Raheja has been fined for violations in projects like “Raheja Atharva” and “Raheja Shilas.” Buyers reported delays and non-compliance with promised specifications, leading to HRERA’s intervention.
- Supertech Limited:
- In projects such as “Supertech Araville,” HRERA directed the developer to refund buyers for significant delays and provide compensation for incomplete commitments.
Actions Against Non-Compliant Buyers
While the focus remains on builders, HRERA has also taken steps to address issues arising from non-compliance by buyers:
- Default on Payments:
- Buyers who default on installment payments without valid reasons are now being issued notices, ensuring that projects are not stalled due to financial delays.
- Contractual Violations:
- Buyers found violating the terms of their agreements are being penalized, emphasizing the importance of mutual accountability in real estate transactions.
- Misuse of RERA Complaints:
- Cases where buyers file frivolous complaints to delay payments or gain undue advantages are being scrutinized, ensuring fair treatment for all parties involved.
Impact of These Measures
The recent amendments and stringent actions by HRERA have significantly impacted the real estate ecosystem in Haryana:
- For Buyers:
- Enhanced trust in the system due to greater transparency and accountability.
- Faster redressal of grievances and compensation for delays.
- For Builders:
- Encouragement to comply with timelines and maintain ethical practices.
- Discouragement of misuse of funds and arbitrary extensions.
Challenges Ahead
While the amendments and actions have strengthened the real estate sector, challenges remain:
- Implementation Gaps:
- Ensuring compliance across smaller developers and agents requires more resources and monitoring.
- Legal Delays:
- Despite HRERA’s proactive measures, legal disputes can sometimes delay the resolution process.
- Awareness:
- Many buyers and agents remain unaware of their rights and responsibilities under RERA, necessitating broader awareness campaigns.
Conclusion
The amendments to the RERA Act in Haryana and HRERA’s actions against big builders and errant buyers mark a new era of accountability in the real estate sector. These measures aim to balance the interests of all stakeholders, ensuring timely project delivery, ethical practices, and justice for homebuyers. At Law & Honour, we support individuals and businesses in navigating the complexities of real estate laws, ensuring compliance and safeguarding rights. If you need expert advice on RERA-related matters, reach out to us today!