3/27/2018 Uttar Pradesh Real Estate Law: Rules And Regulations

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All You Need To Know About UP RERA

 July 27, 2017   |   Sunita Mishra (https://www.proptiger.com/guide/author/Sunita-Mishra)

(Dreamstime)

The Chief Minister Yogi Adityanath-led Uttar Pradesh was among the states which notified the Real
Estate (Regulation & Development) Act, 2016, without the Centre having to nudge them. The Central
law came into force on May 1; soon after, rules were notified by the state government. However, it
was only on July 26 that UP was able to launch its Real Estate Regulatory Authority website

(www.up-rera.in (http://www.up-rera.in/)). According to media reports, the site slowed

down as a great number of complaints — as many as 15,000 in number — poured in right after the
launch. The sheer number of complaints is indicative of the troubles homebuyers in the state might
have faced in the past — not so anymore.

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3/27/2018 Uttar Pradesh Real Estate Law: Rules And Regulations

Let us look at the key features of UP's version of the law, and how it promises to guard the interests
of homebuyers.

What defines as an ongoing project?

Now, developers of the ongoing projects will have to register their projects with the state RERA. It is
only after doing so and receiving registration number that developers can promote and advertise
their projects. In case of any failure in this regard, they will have to pay 10 per cent of the value of the
project as fine or face a jail term.

That leaves us with one question, what falls under the definition of “ongoing projects”?

The Central law defines "ongoing projects" as those projects for which a completion certificate has
not been issued. Developers of such projects, says the Central law, will have to make an application
to the authority for registration "within a period of three months from the date of commencement of
this Act".

The UP version of the law is more specific about what is not covered under the law.

In UP, an ongoing project would be that for which development is going on and a completion
certificate has not been issued. Projects that meet any of the four conditions would not have to
register themselves with the authority:

If the work for maintenance has been issued to the local authority.

If the common areas and facilities have been handed over to the Residents Welfare
Association for maintenance.

If all the development work has been completed and the sale deed for 60 per cent of units has
been executed.

If all development work has been completed and an application has been made to the
competent authority for issuing a completion certificate.

What lies under the carpet?

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3/27/2018 Uttar Pradesh Real Estate Law: Rules And Regulations

While the Central law says the sale of an apartment now would only be based on carpet area. The UP
version says that developers of existing projects "should disclose the size of the apartment based on
carpet area, even if earlier sold on super built-up area or built-up area".

What are developers' responsibilities?

As prescribed in the Central version, developers in UP cannot make any changes to the plan that had
been sold without the written consent of the buyer. However, there are some points where the state
law is different from the Central law.The Central law mandates that developers are liable to provide
all documents related to the land upon which they plan to develop the project. This land must be
free of any encumbrances. However, in case there is any loss to buyers owing to

The Central law mandates that developers are liable to provide all documents related to the land
upon which they plan to develop the project. This land must be free of any encumbrances. However,
in case there is any loss to buyers owing to defective land title, the developer will be liable to
compensate buyers. While the UP law of the version does mandate developers to provide
authenticated documents involving land title, and the documents in case there are any
encumbrances, it does not speak on the point of compensation in case the land title is found faulty at
a later stage. Similarly, developers in UP will also not be responsible for fixing any structural flaws as
the state law is silent on that point. According to the Central law, developer will be responsible for
rectifying structural faults till five years of giving possession of a project without charging anything.

Need to know

The highest jail term for a developer who violates the order of the appellate tribunal of the
RERA is three years, with or without a fine.

Any delay in project completion will make the developer liable to pay the same interest as the
EMI paid by the buyer.

Every project measuring more than 500 square metres or more than eight apartments will
have to be registered with the RERA.

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