New RERA amendments bring relief to homebuyers of unregistered projects

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The amendment also clarifies that no fresh sale or lease agreement will be executed in such cases. Instead, necessary changes will be recorded as endorsements in the existing agreement, and the promoter will update records accordingly.The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has notified the 10th amendment to its General Regulations, 2019, bringing relief to the allottees buying property in projects not registered with RERA. The amendments, effective from March 25, aim to protect consumer interests and enhance transparency in the state’s real estate sector.In a statement issued on Thursday, RERA stated several important changes have been introduced through these amendments with the objective of protecting consumer interests and enhancing transparency and accountability in the state’s real estate sector. These amendments have been issued under Section 85 of the Real Estate (Regulation and Development) Act, 2016 (RERA Act) and have come into effect from March 25.The key amendment includes inclusion of three new sub-clauses under Regulation 24, which relate to judicial proceedings before the benches of UP RERA. For long, it was unclear if allottees of unregistered projects could approach the Authority and what remedies were available under RERA. These amendments have now clarified these provisions, providing major relief to homebuyers.UP RERA chairman, Sanjay Bhoosreddy, stated that the amendment aims to enhance transparency in the real estate sector and protect the interests of allottees.According to the new regulations, complaints from allottees of unregistered projects will be heard by the Authority’s benches in accordance with the prescribed procedure. The bench will first determine whether the concerned project is exempt from registration under Section 3 of the Act and Rule 2(1)(h) of the UP RERA Rules. If any relief is found to be due, it will be granted accordingly.Since UP RERA may not have complete information about unregistered projects or their promoters, the authority will obtain additional details, for issuing notices and adjudicating complaints, from complainants to process complaints. It will soon issue a separate order and develop a facility on the UP RERA portal, enabling affected allottees to file complaints through Form-M. The concerned bench will first decide on the issue of project registration. If it concludes that the project requires registration, it will refer the matter to the Secretary to ensure necessary action for registration in accordance with the provisions of the Act, rules, and regulations. After deciding the preliminary issue of registration, the bench will consider the complaint on merits and grant appropriate relief based on applicable laws and facts.The second major amendment pertains to Regulation 47, which deals with administrative charges and standard fees. This regulation has been restructured to include new provisions, governing the fees charged by promoters in cases of inheritance or transfer of allotment.Story continues below this adIn case of an allottee’s death, the promoter can charge a maximum processing fee of Rs 1,000, if the successor is a family member. In such cases, the successor must submit necessary documents such as the death certificate, succession certificate issued by a competent authority, and no-objection certificates from other legal heirs.If the transfer is made in favour of a person other than a family member, the promoter can charge a maximum processing fee of Rs 25,000.The amendment also clarifies that no fresh sale or lease agreement will be executed in such cases. Instead, necessary changes will be recorded as endorsements in the existing agreement, and the promoter will update records accordingly.Stay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:lucknow