Middle-class home buyers get clarity to avail loan subsidy under Pradhan Mantri Awas Yojna
The government has set guidelines for implementation for home purchasers in the mid-income group (MIG) sector of the System of Credit-Related Supply System (CLSS). The move is intended to reduce the EMI for the middle class by over 2000 Rs per month.
All mid-size home buyers earning over Rs 6 lakh per year, with a cumulative annual income of Rs 18 lakh, will be entitled to receive interest subsidy on loans under Pradhan Mantri Awas Yojna (Urban) 2017. Investment subsidy for home loans for building or buying a house with a carpet area of 90 square metres shall be given by the people earning up to 12 lakh annually and 110 sqm by those earning up to Rs 18 lakhs annually. No fee shall be paid from applicants under CLSS by banks or housing financing firms. The term of the loan can be no more than 20 years and the lower one is preferred by the home buyer. The scheme gives priority to widows, single women working, men from scheduled tribes and scheduled castes, backward classes, transgender people, and differently-abled.
In the case of the low revenue segment (EWS) and low-income category (LIG) which had earnings of Rs 3 lakh and Rs 6 lakh per year, the CLSS portion of PMAY(Urban) was introduced in June 2015 and was applicable already. Interest subsidies of 6.5% for a home loan of up to Rs 6 lakh are charged to the citizens in this community.
Real Estate Regulatory Authority (RERA) Act in Karnataka
With effect from 1 May 2017, the Real Estate Regulatory Authority (RERA) Act came into force. The Karnataka Real Estate Regulation and Development Rules of 2017 were authorized and notified by the Karnataka government on 10 July 2017, under the RERA Act. Its goal is to reform the Indian real estate market citizenship, promote more openness, accountability, and financial discipline.
Some of the most significant features of RERA Registration of compulsory real estate projects and real estate agents planning to sell any plot, apartment, or house with (RERA), and Public disclosure requirements mandatory for all projects registered, and establishment in each State / UT of one or more real estate regulatory agencies
Key Components in RERA Act
RERA for Promoters
Promoters will have to furnish the following information and documents such as a Self-attested copy of the PAN, an annual report including audited profit and loss account, cash flow statement, balance sheet, and the auditor’s report for registration of a real estate project with the regulatory authority
RERA for Real Estate Agents
Real Estate Agent shall furnish personal and enterprise details, details of the real estate agent, a Self-attested copy of the PAN card, a Self-attested copy of the address proof of the place of business for registration along with the required forms with the regulatory authority.
RERA for Buyers
By implementing these laws, residents of the State will now be able to access details and select appropriate apartments/houses / locations without having to worry about the implementation of the project and with recourse to complaints and appropriate measures against defaulting developers/agents. This Act provides a forum in the state for customers to make complaints to a promoter/agent and complaints.
A complaint can be sent to the Regulatory Authority for breach under the Act to any aggravated person, would complain to the Adjudicating Officer. However, the payment of INR 1,000 in DD should be made as to the fee.
Haryana RERA to issue notices to developers
The Haryana Real Estate Regulatory Authority (Haryana RERA) will soon be sending notices to builders and developers who offer guaranteed returns for attracting additional investment in their homes and businesses.
Officials confirmed that many state developers provided guaranteed returns, including fixed rental income for their residential projects. On the other hand, for commercial ventures, a guaranteed return of 12 percent is available.
The guaranteed return schemes are an unusually high-return financial fraud. Strict steps against developers who publicize such schemes shall be taken. The Authority also calls on agents to approach the project if any developer insists on selling it in safe returns. If the developer has been found guilty, his entry is cancelled. The Authority has instructed the buyers to withdraw from these arrangements. Around 25-30 complaints about such systems were issued by the Authority, which was already dismissed. However, in two cases FIR was reported with the investigation of two more allegations.