Caution against unregistered housing projects

Caution against unregistered housing projects
01/02/2018 , by , in News/Views

Forty developers who have not registered their projects with the Tamil Nadu Real Estate Regulatory Authority will not be allowed to sell any space in the project, according to official sources.
A senior official told Express that the TNRERA had issued notices to the promoters of the buildings advising them to apply for project registration as they fall within the ambit of the RERA.
The owners or promoters of these buildings have replied that their buildings are meant for own use and not for sale to the general public.

As such, we have notified the public that the promoters or developers of these projects are not authorised to sell any space in the project under Section 3 of the Real Estate (Regulation and Development) Act, 2016.

To a query whether the TNRERA would also intimate the Registration department over sale of property by the developers, the official said they would look into it.

A real estate expert said that most of the developers may be trying to avoid registration due to the GST impact. “Why would they take risk to face the GST. They could sell the property once the project is completed,” said the expert.

Former national president of the Builders’ Association of India R Radhakrishnan agreed that a developer would avoid marketing of his project in the initial stage itself. He would rather complete the project and then market his property.

Meanwhile, officials did not rule out that developers could sell the property by transferring the project in the name of relatives. “We will try to ensure they don’t misuse the norms,” said the official.
New housing projects with a minimum of eight units should be registered with the TNRERA. Under Section 3(1) of the Real Estate (Regulation and Development) Act, 2016, no promoter shall advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment or building in any real estate project or part of it without registering the project with the TNRERA.

About admin