Maharashtra Real Estate Regulatory Authority

Central Government has enacted Real Estate (Regulation and Development) Act, 2016 and all the Kalam's implementation is being done from 01 May 2017. Following this law, the Government of Maharashtra has set up the Regulation Authority of Maharashtra Real Estate Regulatory Authority (MahaRERA) to regulate real estate sector, notification No. 23 dated 08 March 2017.
The main components of Real Estate (Regulation and Development) Act, 2016 are as follows:

Under this Act, the Government has to establish a Real Estate Regulatory Authority, with the aim of regulating and promoting the real estate of their state. This Authority will endeavor to promote the interests of beneficiaries, promoters and agents in the real estate sector, as well as healthy, transparent, efficient and competitive growth in the real estate sector. Similarly, the said Authority will set up the Niwada system for speedy disposal of complaints regarding the registered property projects. The major responsibilities of the Nidwa system will be:

  • Ensure promoters to disclose real estate project information
  • Registration of Real Estate Projects
  • Registration of real estate agents
  • Grievance Redressal Mechanism
  • Making the recommendations appropriate to the development and development related to the real estate sector

Establishment of appropriate appellate tribunal to appeal to the judge, directive or order given by the Real Estate Regulatory Authority or the decision officer. The person, who does not accept the decision, direction or order given by the authority, will appeal an appeal before the Appellate Authority and the Appellate Tribunal will, however, prepare for it as soon as possible, within 60 days.

All commercial and residential real estate projects must be registered, leaving the mentioned projects below

  • The area which is proposed for development is not more than 500 square meters.
  • The number of proposed tents to be developed is not more than 8. (A project with phase-building)
  • Before the implementation of this law, the promoters have got the certificate of construction completion.
  • Under this law whose renewal, repair or redevelopment, in which the marketing, marketing or sale of apartments, plots or buildings should not be allotted new

Without the registration of the Real Estate Regulatory Authority, no promoter will be able to invite their real estate project or advertisement of its part, the sale of the market, the registration of the beneficiary, the sale or sale of the beneficiary, or invite to buy a plot, tenement or building. In the ongoing projects, promoters who have not received the full certificate or occupation certificates according to the approved plan, must submit their real estate to the real estate regulator.

According to the law, if the promoter does not register the project, penal action will be taken against it, according to which the estimated cost of the project / penalty up to 10% of the cost can be levied. If the above promoter has violated the law, he will be punished with imprisonment of up to three years or more than 10% of the cost of the project, or both.

Without the registration of the project, the progress of the project and current status is conveyed to every quarterly authority.

All the agents working in the real estate sector are required to register under the law. The applicants can not deal with the sale / sale of house / plots / plots in the project or they can not be mediated for the person / person’s behalf. If the applicant fails to register or fail to register, then a penalty of rupees ten thousand will be charged every day. Also, the penalties will be charged from the day of registration to the day of registration till date, and together with 5% of the cost of the building, the tenement, plot (which is applicable) in relation to the purchase or sale of such amount.

Any person affected, may report to the Authority regarding the complaint to the Authority or the Authority, regarding the violation of the provisions of this Act and the action against the provision. However, the proposer / project has to be registered, the project has to be registered with the Authority. The Authority may establish a mechanism for speeding up the grievance / resolution of the complaint. The person who is hurt by a copy, directive or order can appeal / appeal before the Appellate Tribunal.

A person suffering from decision or order of authority Appeal in High Court

The person distressed by decision or order of the Approval Authority Appeal in High Court

In the case of real estate, financial discipline will be emphasized. Some of the provisions are as follows

  • The promoter shall not accept more than 10% of the expense of any person, apartment, plot or building, in advance, with the application or in the form of an application, even after the registration of a written agreement of sale.
  • The beneficiary has to deposit 70% of the amount for the real estate project, the amount collected from time to time, by opening a separate account in the schedule bank, from which construction expenses and the cost of land can be spent, the amount received / deposited should be used for the same purpose.
  • As per the progress of the project and the amount can be withdrawn from the account by the amount. It has to be certified by the certificates of progress and expenditure, project engineer, architect, and working chartered accountant.
  • If the promoters give false or inaccurate information, the buyer will give the full refund with the interest to the buyer.
  • According to the financial year, the documents of the project are to be inspected and submitted to Mahararera.
  • If this is not settled, the bank has a right to frozen bank accounts.
  • If this does not happen, then the owner has the right to impose severe financial penalties

The Real Property Act has high transparency, as follows:

With the following information, detailed information about the registered project is made available to the citizens on the website, in which:

  • Plan of approved plan, map, plan plan, features,
  • Proposed plan, the layout / design of the entire proposal and the constituent coordinates used for the entire project proposed by the promoter
  • Number of proposed buildings or number of wings to be constructed and the number of buildings or buildings sanctioned or wing.
  • Timetable Project Completion Schedule which includes water, sewerage and electricity etc.
  • Quarterly information about the type wise plot / house sold which has been sold.
  • Quarterly report- Number of inventory overloaded garages / inventory
  • List of approval criteria and number of pending approvals / list for each quarter after getting the certificate of starting / commissioning of construction
  • Quarterly state of the project
  • The information / related information and related documentation mentioned in the regulation of the Authority
  • Regarding registration number registered by the Maharashtra State Real Estate Authority and on the detailed information given on the website / details of the Authority, similarly, the project’s advertisement, information booklet and all the documents that are published will be highlighted by the promoter.

  • Citizens can view details of the registered project on Mahararera’s website. Citizens can make the right decision by that.
  • In addition to the promoter / sanctioned plan, draft, sanctioned facility, adjustment / replacement in the house, equipment etc., in addition to the promoter, at least two-thirds of the beneficiaries of the buildings in the building can not be altered / modified without consent.
  • They will be eligible to pay interest on the delay of each month if the promoter fails or is unable to do the work of the tenement, plots or buildings and in accordance with the conditions mentioned in the possession / sale agreement. The delay is due to the beneficiaries, if the project has to be withdrawn, the beneficiaries should return the full amount paid to the promoter.
  • Within three months from the date of issuance of occupancy certificates within three months from the date of sale of 51% of the building or wings, the promoter will initiate the process of establishing the capacity of legal entity such as cooperative organizations, partnership bodies, organizations, federation etc.
  • 51 percent of the house holders in the building or wing have to make the registered transfer holder of the property within three months from the date of payment to the full amount of the tenants.

Real Estate (Regulation and Development) Act 2016 is a step towards reforms in India's real estate sector, in which full transparency, citizen centering, accountability awareness and financial discipline will be followed.

Corporate Office Address

Kanakia Spaces Realty Pvt. Ltd.
215-Atrium,10th floor, Next to Courtyard by Marriott Hotel,
Opp. Divine Child High School, Andheri Kurla Road, Andheri (East),
Mumbai - 400 093, India

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