Stakeholders Urge Clarity on UKRERA Regulations in Uttarakhand Real Estate

In a world where the real estate sector's growth is closely tied to regulatory clarity, stakeholders in Uttarakhand are voicing their concerns over the lack of transparency in the state's real estate regulations. At a recent workshop organized by the Uttarakhand Real Estate Regulatory Authority (UKRERA), real estate professionals and buyers alike raised alarms over the ambiguity surrounding the rules that govern promoters and allottees in the state. The lack of clear guidelines has not only led to confusion but also fostered an environment where misinformation thrives, negatively affecting relationships between developers, buyers, and regulators.

Regulatory Changes and Lack of Clarity

Since the introduction of RERA (Real Estate Regulatory Act), regulations have evolved significantly. However, the shift has left many developers from earlier eras, familiar with the more relaxed practices of the 1990s, struggling to adapt. Manoj Joshi, Chairman at the National Real Estate Development Council, Uttarakhand chapter, highlighted that while regulatory changes have been frequent, the communication of these changes remains insufficient. "The practices of the past are still ingrained in the development community. The confusion often leads to unintentional mistakes, resulting from a trickle-down of fragmented information," he said.

Buyers Seek Protection and Clarity on Rights

Buyers at the workshop also expressed their concerns, particularly regarding builder-buyer agreements. Some even referred to these agreements as a form of "blackmail." However, UKRERA officials reassured attendees that the draft of the Sale Agreement is available on the RERA website, and buyers can challenge deviations from the standard terms. Furthermore, the authority clarified that, for five years from the date of possession, any structural or quality-related maintenance issues remain the responsibility of the promoter. However, many buyers remain unaware of this due to the frequent omission of such clauses in builder-buyer agreements.

Issues with Super Area Calculation and Lack of Resolution Channels

One of the most contentious issues raised during the workshop was the ongoing discrepancy in the calculation of area for registration and taxes. While RERA guidelines specify registration based on carpet area, developers continue to use the super area, which affects calculations for house tax and commercial electricity charges. SK Jain, President of a local Resident Welfare Association (RWA), expressed frustration with the ongoing problem, stating, "Years after partial handovers, fire safety systems often fail, despite receiving NOCs from relevant departments. There is no clear resolution path for these issues."

The Need for Real-Time Progress Tracking

As digital transactions grow in prominence, real-time tracking of developers and their projects is becoming increasingly important. While UKRERA has acknowledged this need, its current capacity to provide such tracking has been limited due to manpower constraints. However, Naresh Mathpal, a member of the authority, assured attendees that a new website is in development. This platform will provide transparent updates on project statuses, enabling buyers to track the progress of their investments. He emphasized that the RERA team is committed to incorporating stakeholder suggestions to improve the user experience and build trust.

Grievance Redressal and Promoter Accountability

Another significant development highlighted at the workshop was the upcoming directive requiring promoters to set up grievance redressal cells. These cells will serve as a first point of contact for buyers seeking resolution for issues with their properties. Additionally, Advocate Aman Rab called on allottees to be more proactive about their rights and take action against violations by promoters through RERA.

UKRERA’s Growing Role

Since its establishment in 2017, UKRERA has seen substantial growth in terms of applications and complaints. As of March 31, the authority had processed over 650 applications and registered 576 real estate projects. With the increasing number of developments in Uttarakhand's capital and surrounding areas, RERA’s role in ensuring fairness and protecting buyers has become more critical than ever. "The authority has a critical job ahead, particularly as cities continue to expand. It will play a pivotal role in ensuring that development remains sustainable," remarked one of the stakeholders at the event.

Conclusion: Ensuring Transparency and Sustainable Development

With the stakes higher than ever, UKRERA is at a crossroads. Stakeholders have made it clear that clearer regulations and greater transparency are essential to fostering trust and ensuring sustainable growth in Uttarakhand’s real estate sector. As cities continue to expand and more developers enter the market, the regulatory body’s commitment to improving its processes will be crucial for maintaining a balanced and thriving real estate ecosystem.