July 27, 2017 07:04 PM

Chandigarh (Face2News)

Terming the allegations of certain provisions of Haryana Real Estate (Regulation and Development) Rules, 2017 being dilutive of the Central Act as ‘uninformed and baseless’, a spokesman of the Town and Country Planning Department has clarified that the Haryana Rules are not only fully consistent with the letter and spirit of the Central Act, but also ensure removal of all loopholes that might have arisen due to non defining of certain terms.

The spokesman said that the government used two cardinal principles to decide upon hundred of suggestions on whether to define some terms in the Rules or not. Wherever a term used in RERA Act has been defined in the RERA Act as well as in a relevant Haryana Act or Rules but the two definitions do not match, the final Rules should define that term to mean what it means in the Haryana Act or Rules. Any term that is used but not defined either in the RERA Act or any relevant Haryana Act, it should be defined in the final Rules.

He said that while applying the first principle, some significant terms like internal development works, external development works, common areas and facilities have been defined to mean what they mean in the Haryana Development and Regulation of Urban Areas (HDRU) Act, 1975 or in the Haryana Apartment Ownership Act, 1983. Further, applying the second principle, the term ‘parking’ has been defined in the Haryana RERA Rules. He said that it was decided to define the term ‘ongoing’ used in the first proviso of section 3(1) of the Act to clarify the grey area left open by the phrasing of the said proviso which reads “Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the commencement of this Act.”
He said that it was clear from the plain reading of section 3(1) that any project for which license for development is issued on or after the date of commencement of the Act viz May 1,2017, the promoter would get an unlimited time to register the project even as would not be able to advertise, market, sell or offer for sale, or invite persons to purchase any plot, apartment or building before such registration.

He said that the proviso of section 3(1) states that those projects which satisfy two conditions would get a window of time upto three months viz July 31,2017 for registration. These conditions are first, the project should be “ongoing” on May 1,2017 and the second is that “completion certificate has not been issued.” Since, no date has been prescribed on which the second condition is to be tested, the only tenable date for the test of this condition that could logically be construed is July 31,2017 that is three months from the date of commencement of the Act. He said that this is not only clear from a plain reading of the proviso, but also from the fact that a promoter invariably is allowed to file an application for issuance of completion certificate only after completion of the development work and the fact that it does take some time for the Competent Authority to carry out physical verification before issuance of completion certificate.

He said that the definition of the term “ongoing” would ensure that unlicensed projects are not able to register with RERA and it would also clear the apparent ambiguity stated above. Further, a new Rule 4(5) has also been added to ensure that a promoter whose project was ‘ongoing’ on the commencement of the of the RERA Act viz May 1,2017 is not able to get away from the responsibility of registering the project and thereby escape the embargo of section 3 on sale and of section 4 on spending the money on activities other than development of the project.

He said that the new Rule 4(5) reads as follows: “A project wehre an application under Rule 16 of the HDRU Act, 1976 or under sub code 4.10 of the Haryana Building Code 2017, as the case may be, is made to the competent authority on or before publication of these rules, but the grant of part completion or completion under the HDRU Act, 1976 or Occupation Certificate, part thereof, under sub code 4.10 of the Haryana Building Code 2017, as the case may be, is refused by the competent authority, whether before, on or after July 31,2017, the promoter shall have to make an application to the competent authority for registration of the project within 30 days of the receipt of communication of such refusal by the applicant.” He emphasised that this Rule was not there in the Draft Rules.


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