Noida, a leading real estate developers association and homebuyers' body said here on Monday that UP RERA needs to reconsider its directive that has made occupancy certificate (OC) mandatory for builders before giving possession letters.
Both said that this decision is not in favor of home buyers in long-stalled projects in western Uttar Pradesh, including Noida and Greater Noida.
In a statement on June 8, Uttar Pradesh Real Estate Regulatory Authority (UP RERA) said it was mandatory for promoters to obtain OC (occupancy certificate/completion certificate) of a project before giving possession letters to allottees.
According to UP RERA, this was done to "prevent arbitrariness" being exercised by promoters through offer of possession letters sent to flat buyers and to eliminate disputes arising between them.
Dinesh Gupta, secretary, CREDAI Western Uttar Pradesh, said, “UP RERA needs to reconsider this decision in the interest of home buyers.,
“It would have been good if this direction was made for new projects, but that kind of classification has not been made. This decision will affect homebuyers in many stuck projects who have completed units but are yet to receive permission from the local authorities. OC has not been obtained,” Gupta said.
OCs are given by local authorities in Noida and Greater Noida. However, a large number of OCs and registries in many group housing projects have been stuck in the twin cities for a long time due to various reasons, including pending dues owed by the builders to the authorities.
Stakeholders say end users, who buy homes to live in, face the most trouble rather than investors, who buy flats as an investment option in stalled projects.This is because the end user not only pays EMI on the home loan but also pays rent for the existing residence.
Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (NEFOWA), felt that UP RERA is making the rules "without understanding the ground reality".
“The rule of declaring possession as illegal without OC or CC is very disturbing. It is like using the same stick to chase away everyone in an old project, where the builder is neither paying the money nor attending the meetings. However, home buyers will have to face major inconvenience."They will have to bear the burden of EMI and rent together. This is not at all in the interest of home buyers," Kumar said.
However, he stressed that this rule would prove to be a "milestone" in new projects where land is sold after the authority has taken the full amount.
But where OC or CC is pending due to dues of an insolvent or missing builder, these rules are not at all in the interest of buyers, Kumar said.
In his June 8 statement, UP RERA chairman Sanjay Bhoosreddy said promoters send "final demand letters" and "final demand notices" using the name and language of "offer for possession", which creates confusion among allottees. It is, and it has some restrictions. conditions.“The ‘offer of possession’ should be for the sole purpose of taking possession,” he said.
CREDAI officials said that in 2017, UP RERA had made a provision for deemed OC, allowing occupation in projects that have four important NOCs (no objection certificates) for fire, electricity, lifts and finance. Were.
Suresh Garg, vice-president, Western UP, CREDAI, said that generally, builders give a final demand letter in their offer letter after the OC, or deemed OC, which may be as per the terms of their builder-buyer agreement.
“But most builders mention the date and letter number of receiving the OC to give reference to home buyers and show credibility. The demand letter cannot be called a possession letter.If a builder does this, he should also clarify when the possession can be given so that confusion does not arise,'' Garg said.
Both said that this decision is not in favor of home buyers in long-stalled projects in western Uttar Pradesh, including Noida and Greater Noida.
In a statement on June 8, Uttar Pradesh Real Estate Regulatory Authority (UP RERA) said it was mandatory for promoters to obtain OC (occupancy certificate/completion certificate) of a project before giving possession letters to allottees.
According to UP RERA, this was done to "prevent arbitrariness" being exercised by promoters through offer of possession letters sent to flat buyers and to eliminate disputes arising between them.
Dinesh Gupta, secretary, CREDAI Western Uttar Pradesh, said, “UP RERA needs to reconsider this decision in the interest of home buyers.,
“It would have been good if this direction was made for new projects, but that kind of classification has not been made. This decision will affect homebuyers in many stuck projects who have completed units but are yet to receive permission from the local authorities. OC has not been obtained,” Gupta said.
OCs are given by local authorities in Noida and Greater Noida. However, a large number of OCs and registries in many group housing projects have been stuck in the twin cities for a long time due to various reasons, including pending dues owed by the builders to the authorities.
Stakeholders say end users, who buy homes to live in, face the most trouble rather than investors, who buy flats as an investment option in stalled projects.This is because the end user not only pays EMI on the home loan but also pays rent for the existing residence.
Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (NEFOWA), felt that UP RERA is making the rules "without understanding the ground reality".
“The rule of declaring possession as illegal without OC or CC is very disturbing. It is like using the same stick to chase away everyone in an old project, where the builder is neither paying the money nor attending the meetings. However, home buyers will have to face major inconvenience."They will have to bear the burden of EMI and rent together. This is not at all in the interest of home buyers," Kumar said.
However, he stressed that this rule would prove to be a "milestone" in new projects where land is sold after the authority has taken the full amount.
But where OC or CC is pending due to dues of an insolvent or missing builder, these rules are not at all in the interest of buyers, Kumar said.
In his June 8 statement, UP RERA chairman Sanjay Bhoosreddy said promoters send "final demand letters" and "final demand notices" using the name and language of "offer for possession", which creates confusion among allottees. It is, and it has some restrictions. conditions.“The ‘offer of possession’ should be for the sole purpose of taking possession,” he said.
CREDAI officials said that in 2017, UP RERA had made a provision for deemed OC, allowing occupation in projects that have four important NOCs (no objection certificates) for fire, electricity, lifts and finance. Were.
Suresh Garg, vice-president, Western UP, CREDAI, said that generally, builders give a final demand letter in their offer letter after the OC, or deemed OC, which may be as per the terms of their builder-buyer agreement.
“But most builders mention the date and letter number of receiving the OC to give reference to home buyers and show credibility. The demand letter cannot be called a possession letter.If a builder does this, he should also clarify when the possession can be given so that confusion does not arise,'' Garg said.
