Telangana RERA must become a compass for entire nation
The CM’s attention can help revive it
King Johnson Koyyada: The property buyers of Telangana are of the opinion that the State government, which is eager to implement its Real Estate Regulatory Authority’s (RERA) model across the country, has failed miserably to strengthen the body. The respective authorities in states like Maharashtra, Uttar Pradesh, NCR and Karnataka are leaving no stone unturned to resolve the buyers’ issues regularly. It is also making efforts to get back the hard-earned money of the home buyers, in case the construction projects run into difficulties. But, the situation is entirely different in Telangana!
The RERA was set up in Telangana in August 2018. It performed well under the supervision of the then senior IAS officer Rajeshwar Tiwari and created awareness among people on the precautions to be taken while buying a house. Ever since, more than 50 per cent of buyers bought flats only in RERA-approved projects. Professional builders had put their projects up for sale only after getting approval from RERA. Nevertheless, after the retirement of Rajeshwar Tiwari, the then Principal Secretary of Commercial Taxes Somesh Kumar was given the additional responsibilities of RERA. After Somesh Kumar has been promoted as Chief Secretary, the RERA started losing its sheen. Perhaps, he might be having difficulty taking some time out for developing the RERA, having been shouldering the responsibility of the development of the State!
As a result, till date, no appellate tribunal has been set up in connection with the RERA. With Chief Minister K Chandrashekhar Rao not focusing on this issue, the people are expressing serious concerns about that the spurt in number of scandals in real estate sector in Telangana. Hence, there is a dire need to strengthen the RERA in the State. Apart from responding to the issues in a timely manner, it is also essential to ensure they don’t recur. Only then can the RERA win the buyers’ confidence back!
After few State governments realised that some builders are cheating innocent buyers of their hard-earned money, the Supreme Court and other legal forums, have extended their support to the home buyers through several judgements. The Supreme Court, in the case of Newtech Promoters and Developers Pvt. Ltd., ruled that the RERA has the power to impose refunds, interest and penalties. The power to collect compensation rests with the adjudicating officer. The regulatory authority can delegate its powers to a single member to hear complaints. Further, Section 43 (5) for Appeals states that the preconditions of the deposit are applicable as per the Constitution of India, it added. In a nut shell, this verdict came as a shot in the arm for millions of home buyers across the country.
The Allahabad High Court also directed the District Magistrate to appear before the court, with regard to a case related to the refunds of buyers in Uttar Pradesh. With this, many home buyers were able to recover their life savings. The RERA issued arrest warrants against real estate company directors in a case in Gurugram, Haryana. In another case, it ordered freezing of all the bank accounts belonging to a real estate company. In Uttar Pradesh, nine builders were fined Rs 1.40 crore for non-compliance with the RERA directives. The Maharashtra RERA ordered the builder to pay Rs 10,000 each month to a buyer, until it gives complete possession of the flat. These instances only indicate the effective functioning of the RERA and the contentment among the home buyers in other states.
For a while in Telangana, the project and agent registration processes in the RERA were carried out successfully. It took about two years for this to happen. However, the problems being faced by the buyers remain unresolved. Many home buyers have been lodging complaints with the RERA, but to no avail. If this issue is raised at national-level, it would be a matter of shame for the State. In order to prevent that from happening, there is an urgent for the government need to strengthen the body in Telangana.