The only change made pertains to the definition of an ongoing project. Haryana town and country planning department had on April 28 notified draft rules under the Real Estate (Regulation and Development) Act, 2016. Haryana Real Estate Regulatory Authority (HRERA) had received a total of 1,874 objections and suggestions from Confederation of Real Estate Developers’ Association of India (CREDAI), other developers, resident welfare associations and individual consumers. The rules have been finalized after considering these. Centre’s Real Estate (Regulation and Development) Act, 2016, has come into effect from May 1 across country.
Builders as well as property dealers have to get themselves registered before July 31. One of the controversial points was interest payable by the builder to the allottee or the allottee to the builder in case of default of possession or installment. The rules have made it clear that the interest would be same for both. It will at same as State Bank of India’s (SBI) highest marginal cost of lending rate plus 2% or benchmark lending rates fixed by SBI for lending to the general public.
The state has amended the definition of term “ongoing project”. It means a project for which a licence was issued for development under the Haryana Development and Regulation of Urban Area Act, 1975, on or before May 1, 2017, and where development works were not completed on that date. It does not include any project for which an application under Rule 16 of the Haryana Development and Regulation of Urban Area Rules, 1976, or under sub code 4.10 of the Haryana Building Code 2017, is made to the competent authority on or before publication of these rules after completion of development works.
Also, the ongoing project does not include that phase of a project for which part completion or completion, occupation certificate or part has been granted on or before publication of these rules. The developer/promoter shall pay a registration fee of Rs 10 lakh for residential/industrial project of hyper/high potential (I&II) and Rs 5 lakh for medium and low potential project. However, for commercial/cyber park hyper/high potential (I&II) project, the builder will have to shell out Rs 20 lakh and for medium and low potential project Rs 10 lakh. The rules say that in case of residential/industrial plotted colony, the rate would be applicable for gross area of the colony.
However, in the case of Group Housing, Commercial or Cyber Park, rates are for 100 floor area ratio(FAR) and would be proportionately higher for higher FAR. In case of a project where an application is made to the competent authority on or before publication of these rules but the grant of part or completion or occupation certificate is refused whether before on or after July 31, 2017, the promoter shall have to make an application for registration of the project within 30 days of receipt of communication of refusal.