The RERA Act, 2016, was enacted by the Government of India on May 1, 2016. RERA Act covers both new project launches and the ongoing projects which have not been completed or the occupation certificate not received. It makes an obligatory on a part of the builders not to book, sell or offer for sale, or invite persons to purchase any apartment, plot, or building in any real estate project registration with authority. To fulfill the RERA Act’s objectives, the Punjab government notified Real Estate (Regulation and Development) Rules on June 8, 2017.
Objectives of RERA Punjab
The Real Estate Regulatory Authority of Punjab strives to fulfill the objectives in full measure. Having RERA registration will promote the balanced development of the sector and maintain the interest of all stakeholders. The objectives behind the promulgation of the Act are as follows:
Project Registration Process under RERA Punjab
- According to Section 3, a promoter cannot advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building in any real estate project in any planning area, without having real estate project registration with the Real Estate Regulatory Authority established under this Act.
It is provided that projects that are ongoing on the date of commencement of the Act but completion certificate have not been issued. The promoter must make an application to the authority for project registration within a period of 3 months from the date of commencement of the Act.
2. Every promoter must make an application to the authority for real estate project registration in such a manner within time and accompanied by required fees as may be prescribed by the regulations made by the authority.
3. On receipt of an application under sub-section (1) of section 4, the authority must do the following within a period of 30 days:
- Grant real estate project registration subject to the provisions of this Act, and provide a registration number. Also, provide a Login Id and password to an applicant for accessing a website of the authority and create his web page to fill in the details of the proposed project.
- Reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of the Act. It is provided that no application will be rejected unless the applicant has been given an opportunity to be heard.
- The authority may extend the real estate project registration granted under section 5 on an application made by a promoter due to force majeure, in such form and on payment of such fee as may be prescribed by regulations made by the authority. The real estate project registration granted can be extended by the authority on an application made by the promoter up to a period of 1 year.
4. The authority on receipt of a RERA complaint or suomotu on this behalf or the recommendation of the competent authority can revoke the real estate project registration granted under section 5, in the following:-
- If the promoter does any default in doing anything required by or under the Act or the rules or the regulations
- If the promoter violates the terms or conditions of an approval given by the competent authority
- If the promoter gets involved in any unfair practice or irregularities
5. If the lapse of the real estate project registration or on the revocation of the registration under the Act, the authority can consult the appropriate Government to take such action as it may deem fit, including the carrying out of the remaining development works by competent authority the association of allottees.
It is provided that no direction, decision, or order of the authority will take effect until the expiry of the period of appeal provided under the provisions of this Act. It is provided further that in case of revocation of registration of a project under this Act, the association of allottees must have the first right of refusal for carrying out of the remaining development works.
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Documents required for the Real Estate Project Registration
According to section 4 subsection (2) the following documents requires for the real estate project registration:
- The details including the address, name, type of enterprise and the particulars of registration, and the names and photographs of the promoter
- The brief details of the projects launched by him, in the past five years, whether already completed or being developed, including the current status of the said projects, any delay in its completion, details of cases pending, details of the type of land and pending payments
- An authenticated copy of the approvals and commencement certificate from a competent authority obtained in accordance with the laws as applicable for the real estate project registration.
- The competent authority sanctions the layout plan, sanctioned plan, specifications of the proposed project or the phase thereof, and the whole project.
- The development plan is to be executed in the proposed project and the proposed facilities to be provided thereof, including fire fighting facilities, drinking water facilities, emergency evacuation services, and renewable energy use.
- The location details of a project, with clear demarcation of land dedicated to the project and its boundaries including the latitude and longitude of the project’s endpoints
- An allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees.
- The number, type, and a carpet area of apartments for sale in the project along with the area of the exclusive balcony or verandah areas and the exclusive open terrace areas of the apartment
- The number and the areas of a garage for sale in the real estate project
- The names and the addresses of his real estate agents, for the proposed project.
- The names and the addresses of the contractors, architect, structural engineer, and other persons concerned with the development of the proposed project
- A declaration, supported by an affidavit, which must be signed by the promoter or any person authorized by the promoter
Additional Documents as required for Project Registration
The promoter must furnish the following additional information and documents, along with those specified in section 4 for registration of the real estate project with authority:
- An authenticated copy of PAN card of a promoter
- An annual report including audited profit and loss account, balance sheet, cash flow statement, Director’s report and the auditor’s report of the promoter for the immediately preceding 3 financial years
- An authenticated copy of the legal title deed reflects the title of the promoter to the land on which development of the project is proposed and legally valid documents for change of title with authentication of the title.
- The details of encumbrances on land on which development of the project are proposed include details of any rights, title, interest, dues, litigation, and name of the party in or over such land.
- If a promoter is not the owner of the land on which development of the real estate project is proposed, details of the consent of the landowner and a copy of the collaboration agreement, development agreement, joint development agreement, or any other agreement.
- The name, contact details, photo, and address of the promoter if it is an individual and the name, photograph, contact details and address of the Chairman, partners, Directors,and the authorized person in case of other entities.
Forms in Real Estate Project Registration
- An application made to the authority for real estate project registration of real estate project must be made in writing in Form A.
- The declaration required to be submitted under clause (I) of sub-section (2) of section 4[1] of the Act, must be in Form B which shall include a declaration stating that the promoter will not discriminate against any allottee at the time of allotment of any apartment, plot or building. However, the promoter can charge different rates from allottees for plots or apartments for different locations, specifications, and at different times.
- On the revocation of real estate project registration as per section 7, the authority must inform the promoter about such revocation in Form D.
- The promoter has to pay the registration fee by way of demand draft for a sum calculated at the rate given in Schedule-1 as amended from time to time.
Grant or Rejection of the Project Registration
- The grant of real estate project registration must be as per section 5 read with rule 3 and rule 4. The authority must issue a registration certificate within a period of 30 days with a registration number in Form C to the promoter.
- In case of a rejection of the application as per section 5, the authority must inform the applicant in Form D. It is provided that the authority will grant an opportunity to the applicant to rectify the defects in the application within such period as may be prescribed by it.
Extension of registration of real estate project
- Under the Act, the registration granted may be extended by the authority, on an application made by the promoter in Form E, within 3 months before the expiry of the registration granted.
- The application for extension of registration must be accompanied by a demand draft or cheque drawn on any scheduled bank or online payment mode. The amount must be equivalent to half the registration fees specified under sub-rule (4) of rule 3. The reasons must be stated for the delay in completing the real estate project and the requirement for the extension of real estate project registration and documents. It is provided that where the promoter is made to apply for extension forcefully of real estate project registration, he must not be liable to pay any fee.
- In case of extension of real estate project registration, the authority must inform the promoter about such extension in Form F. In case of rejection of the application for extension of registration. The authority must inform the promoter about such rejection in Form D. It is provided that the authority will grant an opportunity to the promoter to rectify the defects in the application within such time period as may be prescribed by it.
Conclusion
Punjab RERA Registration portal was designed to register real estate projects, real estate agents, and RERA complaints relating to real estate in the State of Punjab. The primary aim of the Act is to safeguard the interests of consumers in the real estate sector and to include transparency and accountability between homebuyers and developers or real estate agents. We at CorpBiz help our clients in registering the projects under RERA and assure them complete guidance regarding the same.
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