In this article we are going to be discussing RERA and more specifically MahaRERA, looking into its salient features
Along with banking and infrastructure, real estate forms one of the strongest pillars of the indian economy. Any kind of disruption or slump in this market has the potential to bring down the entire economy even if the other sectors are performing well.
This is why the government takes legislative measures to regulate the sector wherever necessary without encroaching into the space of free markets at the same time. This is a delicate balance to maintain. RERA is one such regulatory step taken by the government to ensure transparency and proper governance in this sector.
In this article we shall take a closer look at RERA and specifically MahaRERA which is applicable in the state of Maharashtra, which has Mumbai, the most expensive and proactive city in terms of real estate.
What Is MahaRERA?
MahaRERA stands for Maharashtra Real Estate Regulatory Authority, initiated under the Real State (Regulation & Development) Act in 2016. It deals with the issues that arise from real estate market transactions.
Under this act, it is mandatory for all the ongoing projects to be registered with the real state regulator. This includes both residential and commercial projects. None of the promoters and developers in the state are allowed to book, sell, or advertise their projects unless they are compliant and registered with Maha RERA.
The main objective behind the initiation of this act was to ensure liability towards property buyers. To be more precise, RERA applies to all the promoters, builders, and landowners in Maharashtra. It is illegal to own an unregistered plot. MahaRERA has earned a good reputation for speedy settlement of RERA complaints. About 4,090 complaints have been received, and 2,370 orders have been passed according to the recent statistics, which is available on the MahaRERA website.
Objectives Of MahaRERA
The primary objectives of MahaRERA are as follows:
- To protect the home buyer’s interests.
- Establishes settling methods for dispute settlement quickly.
- To ensure the sale of a building, plot, or an apartment in the real estate sector to be efficient and transparent.
- Make an Appellate Tribunal for hearing the complaints and make the decisions and orders of the RERA.
Builder To Adjust Money With Buyers For Carpet Area Shortfall
Suchita Upadhyay, a home buyer, logged a complaint to MahaRERA that she booked an apartment in Borivali West. She further said that the carpet area mentioned by the builder in the agreement was 875 sq ft. The total area was only 647 sq ft.
During the hearing, the developer said that the exact carpet area of the buyer`s apartment is 806 sq ft, and the same was mentioned on the MahaRERA website at the time of registration.
The MahaRERA directed the developer to reduce the cost of the plot after the home buyer complained about it. The developer agreed to adjust the pertinent amount from the total amount of 13 lakhs due from the buyer for the shortfall of 69 sq ft. The chairperson of MahaRERA, Gautam Chatterjee, said that the respondent should demand the balance amount from the person who has complained at the time of handing over the possession of the plot or the apartment.
Another RERA complaint was lodged by a home buyer, Krishna Kumar Neduguil. He reported that although he paid a substantial amount to book a plot in a project named Sapphire I, the developer had changed the date of possession from December 2016 to December 2017 and then March 2019 at the time of registration on the MahaRERA website.
According to the developer, the delay was due to certain uncontrollable reasons. The chairperson, Gautam Chatterjee ordered the promoter of the Sapphire I project to sign the registered agreement before December 2017 with the possession date of March 2019. The developer then promised to complete the project with the OC (Occupancy Certificate) before the deadline of March 2019.
In two other separate orders, the chairperson of MahaRERA directed two developers to instantly execute registered agreements for sale to the home buyers. Soumitra Buildicons Pvt. Ltd. complained to MahaRERA against Conwood Realty Pvt. Ltd. that though they had paid about 50% of the total cost for 5 apartments, the developer had only given the allotment letters and failed to effectuate the registered agreements for sale.
During the hearing, the developer of Conwood Realty Pvt Ltd made multiple comments. He said that he did not obtain the CC (Commencement Certificate) for higher floors then. He further added that according to the practice in Thane, registered agreements for sale can only be executed after the issuing of the CC. However, the developer offered to pay back the investments made by the buyers if they wanted to withdraw the project.
The chairperson of MahaRERA asked the developer to execute the agreements of the five apartments within 45 days from the issuing of the commencement certificate as per section 13 of RERA. He said in his order that no demands for payments could be raised by the respondent until the agreements are executed as the complainant has already made a payment of 50% of the total amount.
The RERA approval is obligatory
The Indian government initiated the Act in the real estate industry for quick settlement of disputes. As per the act, every state and union territory of India must establish its own RERA. This is to protect the consumer’s interest. The developers must register their projects under RERA. Buyers are also advised to purchase the property which is registered under RERA. Because of some significant reasons provided below:
- Non-registered real estate projects are illegal. And the buyers might face some difficulties in the future.
- The regulatory body for atonement might question the buyers on purchasing an unregistered property.
- The promoters shall have to pay the penalty for non-registration along with imprisonment in some cases.
Moreover, the developers must mention the registration numbers of all their projects in all their promotions. This is to ensure their compliance with the regulatory body. These edicts are essential to meet the objectives of the RERA.
Benefits from RERA registration
Authenticity
The RERA certification assures the authentication to promoters as well as to the brokers. In the future, it will attract more potential buyers.
Flexibility
MahaRERA provides convenience and flexibility for the promoters in choosing the delivery date of the project as per their consent.
Complaints
Buyers, promoters and brokers are all allowed to raise a complaint to the authority regarding any matter.
Click here to know more about Benefits of the RERA Act
MahaRERA Login Page
The MahaRERA website is the most consumer-friendly among the other RERA websites. You can find all the details of the ongoing projects or when you can get the possession of your house or apartment, with just one click on the MahaRERA login page. You may also check the reliability of the brokers of different projects on this page.
Conclusion
The MahaRERA has been successful in regulating the real estate industry as well as streamlining itself. Therefore, it is apt to say that MahaRERA has become a blessing for the people of Maharashtra. As they can buy their dream home without falling prey to any fraudulent actions. If you have any other queries with regard to regulatory or legal matters in real estate get in touch with us and our team of legal experts will be happy to address any of your concerns and assist you with any requirements that you may have.
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