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UP- RERA cracks down on conditional possession practices in real estate sector

Synopsis

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) is addressing complaints from allottees regarding promoters offering conditional possession of units through agreements that undermine their legal rights. These agreements differ from the original sale contracts and often force allottees to sign under duress. Additionally, many projects are being marketed with unapproved facilities, unauthorised changes to plans, and delayed possession timelines. Promoters are demanding payments beyond agreed costs and pressuring allottees to accept incomplete units without necessary occupancy or completion certificates. UP-RERA is poised to take action against guilty promoters to protect the rights and interests of the allottees.

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The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has received complaints from allottees regarding promoters who are offering conditional possession of units through declarations or agreements that differ from the original sale agreements. These conditions are deemed illegal as they restrict the allottees future legal rights. The authority is preparing to address these complaints to safeguard the rights and interests of the allottees, with appropriate action planned against any promoters found guilty. Additionally, there are reports that projects are being marketed based on facilities not approved by the competent authorities, with unauthorized changes made to approved plans and layouts without the consent of the allottees. Possession is also not being delivered within the timelines specified in the sale agreements.

Promoters are selling units based on misleading information and failing to provide the promised amenities. They are coercing allottees to sign agreements or declarations to obtain possession, which contain terms that prevent them from exercising their legal rights under the RERA Act. Sanjay Bhoosreddy, chairman of UP-RERA, stated that the complaints about conditional possession have been noted, emphasizing that promoters should sell units based on factual representations and approved layouts, ensuring possession is granted without deviating from the sale agreement to prevent allottees from feeling cheated or dissatisfied.

Complaints have also surfaced regarding some promoters in the state offering possession without the development of the amenities and facilities outlined in the sale agreement or builder-buyer agreement (BBA). Additionally, before possession is offered, these promoters are demanding payments exceeding the cost of the unit and not in line with the agreement's conditions.

Allottees are being pressured to accept incomplete units without the required registration formalities and without obtaining occupancy certificates (OC) or completion certificates (CC). Furthermore, projects are being marketed with descriptions of facilities lacking approval from the relevant authorities, and changes to the approved plans and layouts are being made without the allottees' consent, with possession not provided according to the timelines specified in the sale agreements.

In conclusion, UP-RERA's proactive stance against unfair practices in the real estate sector aims to uphold the rights of allottees and ensure compliance with regulations. By addressing complaints and enforcing accountability among promoters, the authority seeks to create a more transparent and trustworthy environment for homebuyers in Uttar Pradesh.

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