Magazine Store




Real estate


UP RERA Enforces Stricter Rule...


UP RERA Enforces Stricter Rules on Possession Letters, Sparking Debate

UP RERA Enforces Stricter Rules
The Silicon Review
12 June, 2024

Developers and homebuyers have voiced objections to the new model format for possession letters

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has mandated that developers can issue possession letters to homebuyers only after obtaining occupancy certificates (OCs) from the development authorities. This decision aims to protect homebuyers and curb the arbitrariness of developers in offering possession.

Developers and homebuyers have voiced objections to the new model format for possession letters. Builders are urging the authority to reconsider this decision, emphasizing the "deemed approval" clause in the Real Estate (Regulation and Development) Act (RERA). This clause stipulates that if the request for an OC or a completion certificate (CC) is not addressed by the authority within a set timeframe, the approval is automatically granted. Homebuyers, on the other hand, are concerned that the decision could exacerbate delays if builders fail to clear their dues to the authorities. This could result in further postponements in the handover of their flats.

According to UP RERA, once the OC or CC for a project is received, possession letters will be issued to the allottees via registered email, residential address by post, and SMS notifications. The significance of the presumed approval clause has been emphasized by CREDAI-NCR, the Confederation of Real Estate Developers Association of India NCR. They argue that this clause has been crucial in mitigating delays in OC/CC approvals, thus preventing project hold-ups and financial stress for both developers and homebuyers.

The ongoing debate highlights the complexities and challenges in ensuring timely and fair possession of homes in the real estate sector, balancing regulatory oversight with practical considerations for developers and buyers alike.