Include non-RERA projects in the rescue fund of Rs 25k-cr: the homebuyers agency FPCE urges PM

New Delhi, November 8 () The FPCE housing buyers body on Friday asked Prime Minister Narendra Modi to modify the eligibility conditions for the ransom fund of Rs 25,000 million of real estate to include the financing of housing projects that are outside the scope of the RERA law due to various laws in some states

In a representation before the Prime Minister, he also wanted the government to set up a working group to better control the fund and prevent its misuse.

The president of the Forum for Collective Efforts of the People (FPCE), Abhay Upadhyay, asked the Prime Minister to modify the condition that the projects must be registered in RERA to the projects must be prior to the RERA period to be fair and fair with All buyers of delayed projects.

He sought the constitution of a working group to bring more transparency and better control over the funds and prevent their misuse.

On Wednesday, the government approved a fund of Rs 25,000 crore to help complete 1,600 stagnant housing projects, including those that have been declared NPA or admitted for insolvency proceedings. The measure is likely to help 4.58 lakh housing units across the country. Only projects registered in RERA with a positive net worth will receive funds.

The Real Estate Law (Regulation and Development), which became effective as of May 2017, establishes the creation of regulators in each state. The law required developers to register all ongoing projects that have not received the certificate of completion.

The association noted that West Bengal, which has chosen not to implement RERA, has enacted its own law: the West Bengal Housing Industry Regulation Act, 2017 (WBHIRA).

This constitutes a serious violation of the Constitution and a complete disregard of a parliamentary law. However, we have questioned the constitutional validity of WBHIRA before the Supreme Court, said Upadhyay.

In addition, the association said there are some states such as Telangana, Haryana, Uttar Pradesh, Andhra Pradesh, Karnataka, Tamil Nadu, Punjab, Maharashtra, Madhya Pradesh and Chhattisgarh that through their standards under RERA have illegally maintained all ongoing projects or Some outside the realm of real estate law to please builders.

There are others, such as Himachal Pradesh and Kerala, where regulatory authorities have just been established and, therefore, a significant number of projects have not yet been registered, he said.

It is worth remembering that the West Bengal act of promulgating WBHIRA and ignoring RERA; or that of some States of illegally eliminating 'ongoing projects' from RERA or delaying the implementation of RERA, has been beyond the control of homebuyers. Despite our repeated calls to state governments, there is no respite for homebuyers from these delays/illegalities, Upadhyay said.

Homebuyers of delayed projects in all these states cannot be punished without their fault, he added.

This special window has not been created under RERA nor will its disbursement be subject to the provisions of RERA. Therefore, the selection criteria should be modified to include all ongoing projects launched before RERA, Upadhyay said.

Apart from that, the association demanded more transparency in the criteria for selecting real estate projects for financing from a special window and in its disbursement. Taking into account the history of the builders who are responsible for the NPAs of the banks for a sum of ninety thousand rupees, they must be kept at a distance and funds should not be disbursed directly to them. This is also necessary because we still do not. having such a mechanism to track the diversion of funds or their misuse, he said. MJH ANZ ABM