Developers Show Hurry In Possession To Avoid RERA Penalty

Developers have practically forced over 2000 families to quickly shift into the new residential projects in greater Noida West and Noida. The reason behind this is that these housing units have been granted the certificates of ‘partial’ completion. ‘Partial’ completion certificates give the advantage to builders to deliver the possession to homebuyers. These kinds of possessions are granted for fitouts, which means that the homebuyers can continue the interior work, inspite of the missing basic infrastructure. The delivery of housing units in this way suggests that the developers will not be liable to pay the penalty to the homebuyers for delay in delivery, which was mandated by Real Estate Regulatory Act (RERA).

The concept of ‘partial’ completion certificate was initiated in the UP Apartment Act and is granted to developers to ease the completion of towers on a one-after-one basis. Homebuyers who shift before completion will not be liable to receive compensation for delay in delivery.

Earlier, the concept of part completion was a way to rescue homebuyers who found themselves stuck after investing in incomplete large housing projects. But now, this concept is being used negatively by a few developers who get partial completion certificate for selected towers and not the certificate for ‘total’ completion. ‘Total’ completion certificate requires a scrutiny in the previous towers by the inspectors before they provide the final approval.

Living condition

According to the rules by the Central Government under the RERA, the apartment being in a proper living condition, which means complete in all aspects, would lead to “ready to move in possession”.

As the UP Apartment Act says, ongoing projects are unfinished projects without completion certificates. The excluded projects in this regard are –

The ones which have completed all their development work and the execution of 60% of sale deeds have been done.

The ones which have completed all the development work and have filed the application for completion certificate with the concerned authority.

But these provisions are being misused by the developers as they are delivering the possession to homebuyers in a haste to be saved from the paying the penalty to RERA once it becomes active from 1st May, 2017.

Partial completion

Homebuyers will have to be cautious and will have to make sure that properties they are investing are finished in all aspects. If the homebuyers become careless, the developers will take advantage of this and the former will lose all the security under RERA.
The concept of part completion is totally new to Urban Development Act which says completion certificate has to be obtained in order to sell off the property. Facilitation of tower wise completion is like project within a project which is not a familiar concept within the urban development act. If the part certificate covers 90% of the project, then also a final completion will be the most important from the concerned authority. If they are unable to do so, the entire housing project will be under the range of RERA.

Defaulters

According to a high official, nobody among the developers and homebuyers is at fault. Nobody can compel the homebuyers to take the possession until and unless it is complete in all aspects.

All the arrangements involving water, electricity and roads surrounding the housing project, have to be handled and provided for by the government, before the developer gives out possession. Greater Noida Authority had received 35 applications for completion certificates, out of which 27 were issued, in the last six months.

The ones which were not granted the completion certificates were dealing with problems of setbacks, parking and non-issuance of no-objection certificate by the fire department.