In 2001, a developer and tech company SRA Systems obtained a sanction plan for the construction of residential apartments along with an IT in the common area but failed to procure necessary permissions which led to the developer constructing another residential building in place of it. The Madras High Court recently ordered the developer to rectify the sale deed with the correct undivided share of interest (UDS) within three months and asked the CMDA to hand over the vacant non-Floor Space Index (FSI) building to the resident welfare association. The court noted that the conveyance of an undivided share in the land, along with a non-FSI block to a private company by the developer was highly irregular and against the sanctioned planning permission.Read more

The Gurugram branch of the Haryana Real Estate Regulatory Authority (H-Rera) has resolved over 25,500 complaints from allottees since it was established in 2018.The Haryana Real Estate Regulatory Authority’s Gurugram branch has passed more than 7,000 judgments and overseen the transfer of 2.5 lakh units during this time. The authority has received a total of 25,509 complaints to date, out of which 12,640 cases were taken to court and the rest were resolved between the parties with the regulator’s intervention.Read more

In accordance with the poll promise of providing financial assistance for poor landowners in the state, the chief minister of Telangana K Chandrashekar Rao finalised the state’s budget allocation for the financial year 2023-24. In its annual budget, the state government has committed Rs 7,890 crore to implement the scheme. The state will provide a sum of three lacs as financial aid in the form of a grant to land owners need not repay in any way. The first phase of the scheme is expected to cover up to two thousand beneficiaries from all one hundred and nineteen legislative constituencies.Read more

The Bombay High Court has raised an important question to the Maharashtra government regarding the ability of the state's housing regulator, the Maharashtra Real Estate Regulatory Authority (MahaRERA), to identify, classify, and rate private developers. The purpose of this is to provide societies and other relevant parties with the information they need to make informed decisions when choosing a builder.Read more

In 2012, Delhi-based Wave Mega City promoter promised possession of 2,300 flats in Noida within four years of booking, in turn collecting more than INR 1,400 crore ($171 million) from prospective buyers. However, a decade later the promoter tried to absolve itself of all responsibilities by filing for insolvency under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. The National Company Law Tribunal (NCLT) dismissed the builder's move on the grounds of malicious intent, but the case has set a dangerous precedent. Other smaller builders are now planning to use the same route to rid themselves of their responsibilities, which has made Insolvency Law Committee consider revising the section.Read more

The Maharashtra Real Estate Appellate Tribunal has overturned a decision made by the Maharashtra Real Estate Regulatory Authority (MahaRERA) regarding the registration of property portals as real estate agents. The tribunal has instructed the authority to reconsider the matter. In 2019, the real estate authority had ordered the web portals to register as real estate agents. However, the web portals contested this ruling, claiming that they simply provide information to the public through advertisements and do not participate in any sales.Read more

The Nagpur division of the Bombay High Court has recently raised concerns about the sluggish pace of illegal structure removal in the city. The court directed the three civic bodies - NMC, NIT, and NMRDA - to expedite the process of removal and also called for the police to provide security teams during these operations. The court's directives were made during a hearing for a suo motu public interest lawsuit (PIL No.1/2022), which brought to light that only 227 of the 4,668 unauthorized structures in the city have been demolished since June of the previous year.Read more

The Bengal government is taking steps to modernize a 68-year-old law, The West Bengal Land Reforms Act 1955, to allow for commercial and industrial use of government land. In an effort to increase revenue for the state, the government is expected to introduce a bill in the state assembly during the budget session that would offer lifelong possession of land parcels to commercial entities, instead of the previous norm of 99-year leases. The proposed bill is expected to unlock government land for the industry, with the exception of khas land (used for personal cultivation) and land under bargadari.Read more

Earlier last week, the Bombay High Court directed the State Environment Impact Assessment Authority (SEIAA) clear out the back log of pending approvals for real estate projects that have been stuck for years due to the deferral of environmental clearance requests by the State authority. The High Court has given the body eight weeks to do the needful, providing much relief to builders and homeowners of these deferred projects. The High Court has directed SEIAA to consider and decide each proposal by applying the provisions of DCPR 2034 or UDCPR and to make a decision on the merits of the proposals.Read more

Earlier last week, the Haryana Real Estate Regulatory Authority (RERA) stopped Bank of Baroda from auctioning plot of land in Sector 109, Gurugram containing a commercial project by CHD Developers Limited located as several claims of the allottees for the project remain unresolved. The authorities also demanded a forensic analysis of CHD Developers Limited's financial records because the company has been accused of diverting funds intended for the project. The promoters and allottees were informed of the auction through newspaper advertisements.Read more