Wednesday 29 August 2018

Can land be considered as a product under consumer protection act 1986?

To an extent yes, For eg: If the land you are talking about is brought from a real estate developer and there has been deficiency in service like wrong pricing, cheating or not delivering the land as per your expectation, then yes. You can file against the builder or developer telling that there is deficiency service like you brought a TV from a showroom.


Otherwise also you can give try the Real Estate (Regulation and Development) Act, 2016


Real Estate (Regulation and Development) Act, 2016 - Wikipedia


The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry.


An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment of building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.


Provisions


Registration


The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. For on-going projects which have not received completion certificate on the date of commencement of the Act, will have to seek registration within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed. Real estate agents who facilitate selling or purchase of properties must take prior registration from RERA. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him.


Protection of buyers


The Act prohibits unaccounted money from being pumped into the sector and as now 70 per cent of the money has to be deposited in bank accounts through cheques. A major benefit for consumers included in the Act is that builders will have to quote prices based on carpet area and not super built-up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets.


Real Estate Regulatory Authority and Appellate Tribunal


It will help establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover. Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities to dispose of complaints in 60 days while no time frame was indicated in earlier Bill.


RERA Rules


The Act under S.84 contemplates that within 6 months of the RERA Act being enforced, State Governments shall make rules for carrying out the provisions of Act. The said Rules are to be notified by the respective State Government.


As late as October 31, 2016, Central Government, released the Real Estate (Regulation and Development) (General) Rules, 2016, vide Notification by the Ministry of Housing & Urban Population (HUPA). The Rules so issued by the Central Government are applicable to the five Union Territories without Legislature viz., Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh. The Rules have been issued after prior release of Draft for comments.


For Delhi, the Ministry of Urban Development is in the process of finalisation of rules while the state governments have to notify the rules on their own.


States like Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu tag behind in implementation of the Rules, with their Rules still not notified. The saving grace being that they are at the advanced stages of finalising the Rules. Maharashtra has issued Rules for consultation also.


Uttar Pradesh is the one of the first States to publish Rules for its respective State.

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