Residents’ associations challenge Haryana RERA in High Court

The residents of Haryana have filed a petition in the High Court challenging the Haryana Real Estate Regulation Act (H-Rera) on the ground that the state government has diluted provisions of the central Act. The Punjab and Haryana high court has admitted the petition on Tuesday. The HC bench of Chief Justice Shiavax Jal Vazifdar and Justice Harinder Singh Sidhu directed the state government to appear before it during the next hearing scheduled for November 23. The petition has been filed by Gurgaon Citizens’ Council and DLF Qutub Enclave Residents’ Welfare Association, accusing the Haryana government of cheating the allottees and buyers by changing the definition of ‘ongoing projects’ in the state rules. They alleged that the state government, by this one move, indirectly helped several developers stay out of the Rera ambit and thus avoid penalty in case of their failure to meet the completion deadline. According to the central Act, any project without a completion certificate as “incomplete” while the state Act says projects, for which developers have received an occupation certificate or have applied for an occupation certificate as of the date of the notification of the Act, will be not be termed as “incomplete”. As a result, over 90% of the residential projects in Gurgaon remain out of the purview of the state Act notified on July 28. Many buyers’ groups have expressed their disappointment over the issue, and are also planning to approach court against the state government. Government officials, on the other hand, have been claiming that the Act is pragmatic, which balances the interests of both buyers and developers. Under the given situation, real estate experts do not rule out chances of an amendment to the state Act.