Newsdetail

UPRERA Hand over flats to buyers if OC is delayed

By Rishabh Chamoli | 2023-03-27

To pressurise the authorities to work with tight deadlines, the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) announced that flat possession must be provided to buyers with all necessary amenities if the Occupancy Certificate (OC) is delayed beyond stipulated time.

The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) issued an order according to which flat owners shall receive the possession in case the Occupancy Certificate (OC) is pending for approval beyond seven days. The authority shall consider the situation as deemed approval.

How effective has UPRERA been in resolving homebuyers disputes?
As per UP RERA, the body received around 47,000 complaints from 2017 to 2022, and the authority addressed almost 90 percent of them. Over 75 percent of these complaints were from complainants across the National Capital Region (NCR), i.e. Noida, Ghaziabad, and Greater Noida.

The authority further stated that 45,000 plus complaints were against the builders, 500 were against the allottees, and around 200 grievances were towards real estate consultants. Shedding some light on the subject, homebuyers stated that UPRERA is able to show a high number of complaint resolutions because it considers a case resolved once an order is issued. As the authority does not have directive powers, these orders are often not implemented, which continues homebuyers disappointment.

What does the RERA state about property possession?
To apprise, Section 11 (4) (b) of the Real Estate (Regulation and Development) Act, 2016 (RERA) makes it mandatory for the promoter to obtain an Occupancy or Completion Certificate (CC) from the competent authority, as the case may be. Upon submission of the intimation by the developer regarding the completion of the project, the authority has to take a decision within seven days and intimate the deficiencies to the developer, if any.

What is UPRERAs stand on the issue?
As per Abrar Ahmed, Former Secretary, UPRERA, the property must have necessary amenities like electricity, water, sewerage, and other internal infrastructure like roads, and certificates of electrical safety, fire safety, structural engineering, and the lifts installation and safety certificate. If these certificates with completion certificate application are submitted, and the file is not rejected within the following seven days, the authority will treat it as deemed approval. The authority will further direct the promoter to execute the sale deed or sub lease deed and give possession of the property to the owners.

What is the homebuyers reaction to the decision?
While the decision seems to benefit the homebuyers who have been waiting for the possession of their apartments, it will allow developers to cover up their malpractices. Firstly, receiving the CC/OC within seven days seems challenging. But in case the authorities do so, the chances of inappropriate scrutiny are high, and homebuyers will have no option but to accept the possession or else they will be required to pay interest.

With UPRERA trying to provide a quick resolution to aggrieved parties, the authority may want to reconsider their stand, as speedy decisions may not always be prudent.