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Saturday, 19 October 2024

WBRERA Rules

The circular from the Government of West Bengal outlines the guidelines related to the registration of real estate projects under the West Bengal Real Estate (Regulation and Development) Rules, 2021 (WBRERA Rules), which are based on the national Real Estate (Regulation and Development) Act, 2016 (RERA Act). Here is an explanation of each key point:


1. **Purpose of WBRERA Rules (2021)**:

   The government enacted the West Bengal Real Estate Regulation Rules in 2021 to implement the Real Estate (Regulation and Development) Act, 2016 in West Bengal. The aim is to ensure transparency, regulation, and promotion of the real estate sector while protecting the interests of homebuyers in the state.


2. **Establishment of WBRERA**:

   The West Bengal Real Estate Regulatory Authority (WBRERA) was set up on July 29, 2021, following the provisions of the RERA Act. The authority regulates the real estate sector in West Bengal. The official website (www.rera.wb.gov.in) became functional on January 31, 2023, and from that date onwards, developers are required to register their real estate projects online.


3. **Compulsory Registration of Real Estate Projects**:

   Under **Section 3** of the RERA Act, and a government notification dated June 6, 2023, any real estate project must be registered with WBRERA if:

   - The land area being developed is more than 200 square meters (about 2.99 katha).

   - The project includes more than 6 flats/apartments/plots.


   Even if one of these conditions is met, the developer (referred to as the "Promoter") must submit an online application to register the project. This registration is project-specific, not promoter-specific.


4. **Exemptions from Registration**:

   If a project is intended solely for personal use by the developer and will not be marketed, advertised, sold, or offered for sale, then it is exempt from mandatory registration with WBRERA. The project can be for the developer's own use without needing WBRERA approval.


5. **Problem of Non-Compliance**:

   The circular notes that a significant number of real estate projects are not being registered with WBRERA. Despite being mandatory, many projects are obtaining Completion Certificates, Partial Completion Certificates, or Occupancy Certificates from local bodies (Corporations, Municipalities, Panchayats) without WBRERA registration.


6. **Action by the State Government**:

   Under **Section 33** of the RERA Act, the State Government has the authority to set policies for the real estate sector. To ensure compliance, the circular states that local bodies will no longer issue Completion, Partial Completion, or Occupancy Certificates for projects unless they are registered with WBRERA or have an active WBRERA registration.


7. **Mandatory Submission of WBRERA Registration Certificate**:

   Henceforth, when applying for Completion Certificates, Partial Completion Certificates, or Occupancy Certificates (either online or offline), developers must submit their WBRERA Registration Certificate for those projects where registration is compulsory. 


8. **Declaration Requirement for Exempt Projects**:

   For projects that are exempt from WBRERA registration (i.e., those for personal/own use), developers are required to submit a **Declaration** stating that the project will not be marketed, sold, or advertised. This declaration must be submitted when applying for Completion Certificates, Partial Completion Certificates, or Occupancy Certificates, using the format prescribed by the respective authorities.

This circular from the Government of West Bengal's Housing Department outlines important guidelines concerning the mandatory registration of real estate projects under the West Bengal Real Estate (Regulation and Development) Rules, 2021 (WBRERA Rules), in line with the Real Estate (Regulation and Development) Act, 2016 (RERA Act). Key points are as follows:


1. *Mandatory Registration*: 

   - Real estate projects involving more than 200 square meters of land or more than six units (flats, apartments, or plots) must be registered with the West Bengal Real Estate Regulatory Authority (WBRERA). This rule applies to both residential and commercial projects or a mix of both.

   - The registration process is project-specific, not promoter-specific.

   - Projects intended solely for personal use by promoters/developers are exempt from this registration, provided no marketing or selling activities are conducted. However, a formal declaration is required in such cases.


2. *Online Portal for Registration*:

   - WBRERA’s online portal (www.rera.wb.gov.in) became operational on January 31, 2023. All registrations of real estate projects must be done through this portal.


3. *Issues Identified*:

   - It has been noted that several real estate projects are obtaining completion certificates, partial completion certificates, and occupancy certificates from local authorities without proper registration with WBRERA, even when registration is mandatory.


4. *New Mandate for Local Authorities*:

   - To address this issue, the circular stipulates that no completion certificate, partial completion certificate, or occupancy certificate shall be issued by any municipal corporation, municipality, or panchayat body if the project is not registered with WBRERA when registration is compulsory.

   - The WBRERA registration certificate must be submitted as part of the application for these certificates.

   - For projects exempt from WBRERA registration (i.e., for personal use without marketing or sale), a declaration must be submitted in the prescribed format at the time of application for the relevant certificates.


This move is designed to ensure compliance with the RERA Act and enhance transparency and protection in the real estate sector for homebuyers in West Bengal.

**Conclusion**:

The government is taking steps to ensure compliance with RERA regulations by making WBRERA registration mandatory before issuing any certificates from local authorities. Developers must adhere to these guidelines or face delays in obtaining the necessary approvals for their real estate projects.

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