Last Updated on October 14, 2018 by Legalseva.net
Hrera has jurisdiction over unregistered realty project with completion certificate
Bringing unregistered projects with completion certificate under the purview of the state real estate regulatory authority (Rera), the Haryana Real Estate Regulatory Authority (Hrera-Panchkula) in a landmark order has held that the state authority has jurisdiction to adjudicate upon the complaint filed against the promoter regarding the non-performance of his obligations even when he has got completion certificate and is unregistered with it.
Also Read- COVERAGE OF PROJECTS EXISTING BEFORE HRERA
The order came in the case, Sanju Jain (complainant) versus TDI Infrastructure Ltd (promoter), wherein the authority also held that no promoter can save himself from discharging his obligations on the ground that he has obtained a completion/occupancy certificate in respect of his project.
The complainant had approached the authority alleging non-performance of obligations cast upon the promoter under the sale agreement. The promoter responding to the complaint contended that the project in question already obtained a partial completion certificate.
Therefore, the said project does not require registration under Section 3 of the Real Estate (Development and Regulation) Act and, thus, the state Rera had no jurisdiction to adjudicate complaint relating to such a project.
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Dismissing promoter contention, the authority observed that Section 11 of the Act defines and elaborates the functions and duties of a promoter. “Nowhere in this section is used the expression ‘promoter of a registered project’ and since the expression used everywhere in the Section is ‘Promoter’, it cannot be legitimately argued that the duties cast upon the promoter will be applicable only to the promoter of a registered project and not to the promoter of an unregistered project,” held the authority.
Simultaneously, section 34 (f) of the Act enjoins a duty upon the state Rera to ensure compliance of all the obligations by the stakeholders in thereunder.
“There is no provision in the Act which expressly or impliedly provides that duties, responsibilities and obligations of a promoter towards his allottees will cease to exists upon grant of completion certificate or that the authority after grant of completion certificate will have no jurisdiction to adjudicate the complaints of the allottees,” stated the authority in the order.
Also Read- RERA Punjab
HRERA (PANCHKULA) SAYS ALLOTTEES CAN APPROACH STATE RERA AGAINST UNREGISTERED PROMOTER FOR REDRESSAL OF THEIR GRIEVANCES
The chairman of Haryana Rera’s Guru gram bench has said the real estate law applies to all projects, irrespective of the date of completion. Which means, anyone with a grievance against a realtor can approach the Real Estate Regulatory Authority and the complaint will be taken up.
Also Read- RERA Chandigarh
KK Khandelwal told TOI Rera can adjudicate in any dispute between a seller and a buyer in a real estate project, even if that project has received a completion certificate before the law came into effect on May 1, 2017.
KK Khandelwal told TOI Rera can adjudicate in any dispute between a seller and a buyer in a real estate project, even if that project has received a completion certificate before the law came into effect on May 1, 2017. Based on the central law, states have enacted and notified their own Rera rules. In Haryana — Guru gram, in particular — buyers complained that developers were being let off the hook as the rules mentioned that those projects which had received completion certificates before May 1, 2017, would not come under the purview of Rera. The law also specifies the kind of projects that are covered — on a minimum plot size of 500 square meters and with more than eight units.
Also Read- RERA
In this light, Khandelwal interpretation is significant, not only for homebuyers in Haryana but also other states who have had complaints about the scope of the real estate law. Haryana Rera’s other bench in Panchkula recently passed an order in favour of a buyer, Sanju Jain, who had filed a case against TDI Infrastructure for not fulfilling its sale agreement obligations. The developer had argued the project was completed before Rera came into effect and, therefore, did not come under its purview.
Also Read- REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
But the Panchkula bench cited Section 11 of Rera to observe that a project’s promoter has to fulfil all sales agreement obligations, and nowhere is it mentioned in the Rera rules that only promoters of projects registered under Rera need to comply.
This post is written by Sumitra Nair.
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