Two residents’ associations in Haryana have filed a petition in the Punjab and Haryana High Court challenging the Haryana Real Estate Regulation Act (HRERA) on the grounds that the state government has diluted certain provisions of the central Act, especially the definition of ‘ongoing projects’ to ensure that “maximum ongoing projects remain out of the ambit of the real estate regulatory authority.’

The Punjab and Haryana High Court has admitted the petition filed by Gurgaon Citizens' Council and DLF Qutub Enclave Residents' Welfare Association and directed the state government to appear before it for the next hearing on November 23.

Members of the two associations have been impacted by the “purported enlargement of the definition of ongoing projects,” says the petition, adding that the government has framed the rules as to be “totally in favour of the builders with a callous disregard to the interest of the consumers.”

It notes that the new definition of ‘ongoing projects’ is against the provisions of the Central Act as it puts “arbitrary and whimsical conditions so as to ensure that maximum ongoing projects remain out of the ambit of the real estate regulatory authority.”

The Central RERA Act clearly states that all developers who have ongoing projects at the time of RERA coming into force and who have not received a completion certificate shall have to within a period of three months seek registration of the project under the purview of RERA.

The Haryana government excludes and exempts all developers who have a part completion certificate or an occupancy certificate from HRERA. “This is a complete mockery of the RERA Act and effectively stifles any chance of relief that buyers could have hoped for from RERA,” the petition says.

“There are still projects sanctioned in the 1980s that have still not been granted a completion certificate and buyers of these projects have been cheated out of the remedy assured to them under the Act of 2016,” said RS Rathee, president, Qutub Enclave RWA, one of the parties that has filed the petition.

In Haryana alone there are more than 500 projects in which an occupancy certificate has been issued or a partial completion certificate granted, but even after 30 years the developers have not obtained a completion certificate.

“A vast majority of builders in Haryana are operating on the concept of partial completion certificates despite having transferred possession. While the Central RERA Act brings them under the purview of the regulatory authority, the rules framed by the state of Haryana exempt them. The homebuyers’ prayer is that this expanded definition of 'ongoing projects' in HRERA be struck down as it is against the Central RERA Act,” says Vaibhav Sharma, advocate-on-record.

The petition also says that the developers are expected to give possession of the flat only after completion of facilities such as finishing work, water supply, sewerage disposal, electricity, installation of generators, operational lifts and common entry and exit areas.

“These essential requirements cannot be overridden by resorting to the practice of part completion certificate as this would be a violation of the Central RERA Act,” the petition adds.