Last Updated on June 7, 2018 by Legalseva.net
Settled- Getting completion certificate after coming in of RERA rules doesn’t mean that you are exempted.
Controversy– In a major blow to developer raising questions of maintainability of complaint before RERA Authority on grounds of getting completion certificate after coming in of provisions of RERA rules, authority held complaint is maintainable and project is under the Ambit of RERA. Therfore interim relief granted to flat owners till the pending of complaint before Panchkula RERA Authority.
Who are exempted – As per order of the bench, only those projects who got occupation certificate/completiton certificate before publication of State RERA Rules 2017 are exempted from the purview of act.
Also Read- RERA-PANCHKULA STRIKES AGAIN
The case- Madhu Sareen vs. BPTP Ltd & Ors.
Complaint – Builder offered possession on payment of enhanced + GST.
But where is the problem?- The Builder unilaterally increased the super area of flat and didn’t informed the allottees nor took consent on top of it. Whereas builder himself caused delay in giving possession before GST came into play. So asking allotees to pay GST and enhanced rate doesn’t make sense.
Also Read- GET YOUR MONEY REFUNDED FOR DELAY IN POSSESSION
Facts
1 Completion Certificate granted on February 26 2018 in respect of part of his project.
2 Allottees plea was on the commencement of act May1, 2017, Developer didn’t got the registration and was an ongoing project. Thus not exempted and liable to be registered under 3 (2)(b) of the Act.
3 Developer prayed exemption under section 3 of the RERA Act.
4 Bench observed that builder file completion certificate not with bonafide intentions and can’t plea completion certificate. In its order authority observed what is an ‘ongoing project’ for the interpretation of the statute.
Also Read- RERA FOR HARYANA
A. First part of the Rule 2 (1) (o) of the Haryana real estate (regulatory & development) Rules 2017 defines the expression ‘on-going project’ as a project for the development of which license has been granted by the competent authority and development work of which is not yet completed on May 1, 2017.
B. Second part of rule 2(1) (o) contemplates that expression ‘ongoing project’ shall not include any project which is covered by the provisions contained in clause one and second of the schedule
The last word separating clause (i) and (ii) is not ‘or’ rather ‘and’. That is both clauses should be satisfied. So any builder who seeks exemption under ‘ongoing project’ has to satisfy all conditions laid down in clause ( i) and (ii).
Condition laid down in class (ii) of rule 2(i) (o) is that completion/occupation certificate must have been granted or before the publication of rules.
Also Read- RERA OR CONSUMER FORUM?
Verification from TCP Haryana
Whether work was completed before applying for completion certificate?
As per clause (i) of rule 2(i) (o) clearly mandates that application for grant of completion certificate can only be made after the completion development works.
In reply by TCP dated 9th April 2018 who pointed out deficiencies to builder via letter dated 4th July 2017 and 5th July 2017. Developer took more than 5 months to inform the department that the shortcomings pointed out by them in earlier letters were removed.
Also Read- HOW TO FILE COMPLAINT IN PANCHKULA-RERA
5 months is a substantial time to show in incompletion of work and builder purposely filed completion application to get cover under RERA despite the fact that work was not completed.
Therefore the authority held that application of developers for grant of occupation certificate was not genuine as the application was made without completing the project.
Also Read- CHECKLIST FOR BUYING PROPERTY IN CHANDIGARH PANCHKULA MOHALI ZIRAKPUR DERABASSI KHARAR BADDI
Licence Issue
Even the license of builder was issued on 2010 and got expired in 2014. It was only in 2018 that it was renewed so the time when completion certificate was applied the Builder was not having any legal requisite for the certificate. Certificate without license is nullity in the eyes of law and has no sanctity.
Panchkula Rera authority extended this interim benefit to complaints present before it and also to the other similar situated residents of the project for who have not even filed the complaint.
In the end, developer was stopped from charging increased price as per enhanced size of plot and even the GST from allottees of the project till the final disposal of the complaint.
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