The Real Estate (Regulation and Development) Act 2016 was enacted for the purpose of regulating and promoting the real estate sector ensuring that the sale of a property takes place in an efficient and smooth manner. The Real Estate Regulatory Authority is a body dedicated to the speedy resolution of real estate disputes.Continue reading
What is RERA?
Real Estate Regulatory Authority popularly known as RERA is a newly implemented law – THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 to ensure sale of plot, apartment of building, in an efficient manner and to protect the interest of consumers in the real estate sector. It also ensures a dedicated and speedy redressal mechanism.
What is the purpose and why did it come to place?
The act proposes and aims to create transparency in the real estate related transactions and to safeguard the consumer’s interests. This act is applicable to all the states within India excluding the state of Jammu & Kashmir. To ensure a speedy dispute redressal mechanism.
Why do you need a lawyer for filing a Complaint?
A well drafted complaint can make your respresentation stronger and can help the tribunal to undertand your grievances better. A lawyer always ensures that during the drafting as well as the argument stage the content of the complaint, legal grounds and the arguments are enunciated in a manner which makes your case stronger and clearer. The complainant might not be able to do the same themselves and hence they need a lawyer to represent their case.
When can you file a complaint?
Any homebuyer who seeks redressal for their grievances are welcome to file a complaint with the RERA. The problems which a homebuyer generally faces with the builders are as follows:
1. Delay in delivery of possession of the property
2. Mismatch in the guise of floor area & carpet area
3. Misrepresentation of design and construction parameters
4. Malpractices like improper amenities, ceiling leakage, improper drainage system, incomplete fire safety system, low quality of electrical wiring, improper water provisions.
5. Not providing occupancy certificate, or
6. any other deficiency in service
If one is facing, any of the abovementioned grievances, they can easily approach the forum to seek redressal.
Who can file a complaint with RERA and against whom can the complaints be filed?
Any aggrieved home buyer or the consumer under the ambit of RERA can bring a lawful suit against the developer or the promoter. The documentary procedure to file a complaint is represented below :
How can we file a complaint with RERA?
Filing complaint before Adjudicating Officer of Regulatory Auhtority
Duly filled "Form M" along with a fee of Rs. 1,000 paid using a demand draft payable where the seat of the said Regulatory Authority is situated.
Filing an appeal before Appellate Tribunal
Attested true copy of the order alongwith duly filled "Form L" along with a fee of Rs. 1000. The composition of the authority is :- Chairman + 3 members ; Chapter X of the act.
How is the interest to be paid calculated in RERA matters, as per the RERA guidelines?
Instead of an algorithm or a calculation on the rate of interest to be charged under the RERA guidelines, it is rather fixed and changes as per the SBI rate.
Approximate Rate of Interests :-
State Bank of India Prime Lending Rate plus two percent (paid by the promotors and the allottee).
How is the interest calculated when there is already a clause for liquidated damages, in the Agreement to sell between the parties.
It is the duty and obligation of the promotor/developer to obey and be governed by the terms and conditions of the agreement signed by him/her in lieu of the sale of the said apartment. Failure to obey such terms will make him liable for an action under the RERA act. Meaning thereby, that the sale agreement terms will take precedence over the default conditions set under the law until and unless the agreement stands in contravention to the RERA act.
How to determine the jurisdiction while filing the complaint?
Filing a complaint under RERA is governed as per the simple Civil Procedure code concept of Territorial Jurisdiction i.e. to be filed before the adjudicating officer of the area where the project/home lies or where the cause of action arose.
GST for Real Estate in India
Akin to the country's first Jawaharlal Nehru who had given the 'Tryst with Destiny' speech at the stroke of midnight on August 15, 1947, the current Narendra Modi government also chose the midnight of June 30 to have a tryst with GST.
Real estate sector being the most pivotal ranks second just behind agriculture.
GST shall bring a lot of transparency in the real estate sector and minimize unscrupulous transactions.
Now whether this benefit gets passed on to the end-consumer is unsure as pricing of real estate is driven by market forces than on costing principles.
Effective GST rate on under- construction real estate projects will be 12 per cent only.
The government had hiked the GST rate for the construction sector to 18 per cent from 12 per cent but removed land value from computation of tax liability.
According to Finance Minister Arun Jaitley, the products placed under the 28 per cent tax slab would not adversely impact the lower or middle class.
Cement will be taxed at the rate of 28% under GST. It is higher the current average rate of tax around 23-24% but a lot of additional taxes charged over the average rate would be subsumed under GST. Iron rods and pillars used in the construction of buildings is charged at the rate of 18% which is similar to the current average rate of 19.5%.
Bricks used in the construction of buildings and houses is taxed under GST at the rate of 28% except for the rate of ceramic building bricks which is kept under 5%. Currently, all bricks except the ceramic bricks are charged an average tax rate of 25-26% inclusive of all state and central level taxes. Logistics cost of transportation of bricks, cement or iron is going to reduce through the subsuming and streamlining of taxes
There is an positive & more sort of initial opening bumper for the reformative Modi Government when the
Stock Exchange Markets Hit Bright Spot.
The Stocks Opened at Above 31,000 on Monday 3rd july due to overall global appreciation of Modi Govt GST by Foreign Finance Index of Asian, US & European Countries claiming that no modern government in the entire World could ever be as bold as ours.
But, the procedures of filing returns in new GST regime are bound to be cumbersome, with businesses expected to file at least 37 returns in a year. This will be multiplied several times depending on the number of states in which one is transacting a business.
Although this cannot be deemed simple in any sense of the term.
But, its true that,
Developers/Builder's and Contractors would reap the benefit of many taxes which will be subsumed by GST.
Conclusively saying, there is going to be a substantial benefit from GST as it will bring a lot of required transparency and accountability.
#NarendraModi #GST #BJP #The Realty Paper