UP RERA Protects Buyers: Flats Handover Without OC Delays Approved

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has implemented a significant measure to address delays in granting Occupancy Certificates (OCs) for real estate projects. According to this directive, if the competent authority does not approve or reject an OC application within seven days, the project will be considered to have received “deemed approval.” This allows developers to hand over possession to buyers without further delay.

Table of Contents

• Understanding the Directive
• Implications for Homebuyers
• UP RERA’s Role in Resolving Disputes
• Navigating UP RERA Services
• UP RERA’s Clarification

Understanding the Directive

As per Section 11(4)(b) of the Real Estate (Regulation and Development) Act, 2016 (RERA), developers are obligated to obtain the necessary completion or occupancy certificates from the relevant authorities. The Uttar Pradesh Urban Planning & Development Act stipulates that upon receiving a completion notice from a developer, the authority must decide within seven days, either approving the application or specifying deficiencies. If no decision is communicated within this period, the OC is deemed approved, enabling developers to proceed with handing over possession to buyers.

Implications for Homebuyers

This directive aims to expedite the possession process for homebuyers, ensuring they can occupy their properties without undue delays caused by administrative bottlenecks. However, concerns have been raised regarding the adequacy of inspections conducted within such a short timeframe. Homebuyers fear that rapid approvals might overlook essential safety and quality checks, potentially compromising the integrity of the construction.

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UP RERA’s Role in Resolving Disputes

UP RERA has been proactive in addressing homebuyers’ grievances. Between 2017 and 2022, the authority received approximately 47,000 complaints, resolving nearly 90% of them. Notably, over 75% of these complaints originated from the National Capital Region (NCR), including Noida, Ghaziabad, and Greater Noida. While these statistics indicate a robust dispute resolution mechanism, some homebuyers argue that the mere issuance of orders does not guarantee their implementation, highlighting the need for more stringent enforcement.

Navigating UP RERA Services

Homebuyers and stakeholders can access a range of services through the official UP RERA website. The portal provides detailed information on registered projects, promoters, and agents, allowing potential buyers to verify the legitimacy of real estate ventures. Additionally, individuals can file complaints, check complaint statuses, and access project details, ensuring transparency and informed decision-making in property transactions.

Stakeholder Concerns

This decision has elicited objections from both real estate developers and homebuyers:

1. Developers’ Perspective: The Confederation of Real Estate Developers Association of India (CREDAI) argues that this mandate could delay the handover of flats, especially in projects where obtaining an OC is prolonged due to bureaucratic hurdles. They reference a 2017 provision by UP RERA that allowed for “deemed” OCs if authorities did not respond within a stipulated time, enabling possession in projects with critical No Objection Certificates (NOCs) for fire safety, electricity, lifts, and finance.
   
2. Homebuyers’ Concerns: Homebuyers fear that the new mandate may exacerbate their financial burdens, forcing them to continue paying both rent and EMIs if possession is delayed due to pending OCs. They emphasize the need for a balanced approach that considers the realities of stalled projects and the financial strain on end-users.
   

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UP RERA’s Clarification

UP RERA has clarified that the directive aims to eliminate confusion caused by promoters issuing possession offers without proper certification. The authority has provided a model format for possession letters to ensure uniformity and transparency, emphasizing that possession should only be offered after obtaining the necessary OC/CC.

To sum up, UP RERA’s decision to treat delayed OC approvals as deemed approvals represents a progressive step to address administrative inefficiencies and expedite home possession for buyers. This measure aims to mitigate delays caused by bureaucratic bottlenecks, offering relief to homebuyers long awaiting possession of their properties. However, the move has sparked concerns about the adequacy of safety and quality checks conducted under expedited timelines. Balancing efficiency with rigorous compliance remains crucial to ensure stakeholder confidence. Homebuyers and developers alike must utilize UP RERA’s resources to navigate the process effectively while advocating for transparent and enforceable measures that address financial and practical realities.

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