Tag: maharera

Real Estate regulator Maharashtra Regulatory Authority of India (MahaRERA) has issued notices to 563 real estate developers in Maharashtra warning of cancellation of their registration owing to non-compliance of uploading details on the website of MahaRERA for the homebuyers.

Out of the total 563 developers, Pune tops the list with 124 developers being non-compliant despite being issued notices earlier.

Background

The MahaRERA had in May 2023, issued notices to around 746 developers for non-compliance of uploading quarterly progress reports and other project details including financial disclosures on the website of the MahaRERA. Out of the 746 developers, 183 developers complied and uploaded details.

However, according to MahaRERA, 563 developers have not complied by not uploading details in the public domain despite receiving notices.

Warning notice giving 45 days:

“If the required information is not updated and responded within 45 days, the registration of the project will be canceled and all transactions like bank, construction, new registration of the project will be stopped,” the MahaRERA said in a statemen issued on July 18.

The notice issued by MahaRERA to developers reads, “You have chosen not to comply with the above-referred provision of Section 11(1) of the Act despite issuance of service of the notice. Please note that, if you fail show cause within the time period of 45 days mentioned herein, necessary orders as deemed fit shall be passed by the Authority entirely at your risk as to cost and consequences.”

Under the RERA Act, developers are required to submit project status, the financial position of the project, booking numbers, annual reports and other details.

Where are the projects?

According to a list shared by MahaRERA, out of 563 developers who have not complied, maximum non-compliant 124 developers are from Pune district, 98 in Nashik district, 71 in Thane district, 48 in Nagur district and 38 from Mumbai etc.

Non-compliance ratio

On February 18, Moneycontrol reported MahaRERA’s statement of around 75 to 80 percent of ongoing registered projects in Maharashtra not regularly uploading quarterly progress reports on the project status and finances.

Sanjay Deshmukh, Nodal Officer for MahaRERA’s lapsed project vertical, during a panel discussion on February 17, had said, “As per the RERA Act, a developer is supposed to submit quarterly and annual reports. However, for about 75-80 percent of the ongoing projects, quarterly reports were not uploaded. We have issued notices and developers have begun the compliance process.”

Source: https://www.moneycontrol.com/news/business/real-estate/maharera-issues-notices-to-563-developers-for-non-compliance-in-project-detail-uploads-pune-tops-the-list-10982511.html

The Maharashtra Real Estate Regulatory Authority (MahaRERA) will not register any new real estate project unless the commencement certificate is verified by local planning authorities.

Local authorities such as Corporations, Councils, Nagar Panchayats and Metropolitan Planning authorities were given time till 19 June, 2023, with the option of either integrating their website with MahaRERA or sending independent mails regarding project registrations.

The commencement certificates now received from local authorities will be compared with those provided by the respective developers and only after the completion of this procedure, registration will be granted.

The initiative has been taken in the light of the growing number of fraud cases in which several developers submitted fake documents to obtain MahaRERA registration certificates.

A construction permit in the form of a commencement certificate issued by a competent authority allows the promoter to begin the development works on an immovable property as per the project plan.

Source: https://www.projectstoday.com/News/Verification-of-commencement-certificates-mandatory-for-registration-of-projects-MahaRERA

Eighty-eight real estate developers have applied to the Maharashtra Real Estate Regulatory Authority (MahaRERA) for deregistration of their real estate projects, following which the regulator has sought objections, if any, from stakeholders.

MahaRERA had in February 2023 allowed deregistration of projects that were unviable or are were in trouble. Only projects in which claims of the homebuyers or other concerned stakeholders have been settled can be deregistered.

1) What does MahaRERA say?

In an order dated June 2, 2023, MahaRERA said promoters of 88 projects had applied for their deregistration. “Any person/legal entity having any objections to the deregistration of the real estate projects as mentioned in the displayed list are hereby called upon to submit their objections within 15 days from the date hereof. The objections be submitted to the following email secy@maharera.mahaonline.gov.in,” it said.

2) What are the prominent projects proposed for deregistration and developers who want to deregister them?

According to a list issued by MahaRERA, Kalpataru Group wants to deregister Kalpataru Centrino in Yerwada, Pune. Arihant Superstructures Limited wants to deregister Arihant Aakarshan Phase-2 in Navi Mumbai followed and Hubtown Group the Solaris project in Mumbai and Siddhi in Thane.

Hubtown could not be reached for a comment. Queries sent to Arihant did not elicit a response. The 88 projects are located in the Mumbai Metropolitan Region, Pune and Nagpur.

“We would like to clarify that the said entire land parcel (admeasuring approx. 5855.80 sq. mtrs. plus open space area adjacent thereto) was sold during Q2 of last financial FY 22-23. Further, we have not sold any units nor received any advance in relation to any unit(s) in our erstwhile project, Kalpataru Centrino. Therefore, the project is required to be de-registered, suspended or cancelled in accordance with the applicable regulations,” Kalpataru said in a statement.

Post the aforesaid sale of land, registration of the said project has become infructuous. Accordingly, we have duly applied for the de-registration of the project with MahaRERA as same is no more required in accordance to the order, regulations and process set by MahaRERA, it said.

3) What is the provision for deregistration?

MahaRERA said that under Section 34 of the Real Estate (Regulation and Development) Act, one of its functions is to register and regulate real estate projects and real estate agents. There are instances of developers registering projects on which they are unable to commence and complete construction, requiring the regulator to deregister them, it said.

4) Under what circumstances is deregistration allowed?

Lack of funds, projects not being economically viable, litigation, disputes including family disputes, and changes in government/planning authority notifications are some of the reasons cited for deregistration of real estate projects. In such cases, keeping these projects registered with MahaRERA will serve no useful purpose, nor would they be beneficial to any stakeholders, MahaRERA said in its February 2023 order.

5) What are the conditions for deregistration?

MahaRERA has listed four conditions under which real estate projects can be taken up for deregistration. The first is a real estate project that has zero buyers and the second is one in which the part that is sought to be deregistered has no allottees.

The third condition is that projects which have bookings shall be considered for deregistration if the rights of such allottees are settled by the promoter and documents to that effect are submitted for verification.

The fourth condition is that when de-registration of part of a real estate project affects the rights of the rest of the allottees in the balance part of the project, two-thirds of the allottees provide their consent for deregistration.

6) Is it an easy way out for developers?

According to legal experts, the deregistration applications should be considered only if the conditions laid down by MahaRERA are being followed by the developers to ensure they do not misuse the provision.

“As per the spirit of the MahaRERA circular issued regarding deregistration, these applications should be considered as per the conditions laid down in the Circular. Interest of homebuyers, financial institutions etc will remain protected provided conditions of the circular issued by MahaRERA are followed,” said Trupti Daphtary, a lawyer based in Mumbai.

She added: “This is a good move by MahaRERA and a wider publicity of this information will help the applications to be decided after consideration of the objections received. Further, other states must also borrow from these practices to allow applications only after following a prescribed procedure keeping in mind the rights of all stakeholders.”

Source: https://www.moneycontrol.com/news/business/real-estate/mc-explains-six-things-you-need-to-know-about-proposed-deregistration-of-88-real-estate-projects-in-maharashtra-10744691.html

Of the 423 real estate agents who appeared in the first-of-its-kind certification examination organized by the Maharashtra Real Estate Regulatory Authority (MahaRERA), 405 have cleared the test.

As per a recent order issued by the regulatory agency, it is mandatory for all 39,000 agents registered with MahaRERA and unregistered agents to obtain the MahaRERA certification by September 1 to practice as property agents.

A MahaRERA official said that the objective to have certified real estate agents is that they play an important role as mediators between the seller and the buyer and,they should be well informed about the decisions and new rules introduced by MahaRERA.

Source: https://indianexpress.com/article/cities/mumbai/405-real-estate-agents-clear-maharera-test-8637662/

According to officials, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has approved the deregistration of two projects in the state out of a total of 60 applications received for the same.

The authority issued an order in February allowing developers to deregister their projects under specific conditions. The procedure has been permitted because many developers are unable to begin and complete building construction.

Deregistration of real estate projects with no allottees (homebuyers) is now permitted under MahaRERA. If there are homebuyers, deregistration will be considered only if the developer resolves the homeowners’ rights and claims, according to the ruling issued on February 10 of this year.

According to the authorities, while two developers have been allowed to deregister under the conditions outlined above, the remaining 58 petitions are being reviewed. “We are carefully reviewing all applications.” “We have only allowed the deregistration of two projects so far,” stated a MahaRERA official.

Homebuyers added that if projects are deregistered, it should be noted on the MahaRERA website, and a notice should be posted at the building site. “The authority should ensure that the developers explain the reasons for not proceeding with the project on their website and they should also indicate the same at the construction sites,” said advocate Godfrey Pimenta, trustee of the Watchdog Foundation.

Source: https://www.constructionworld.in/latest-construction-news/real-estate-news/deregistration-okayed-for-two-projects-in-state-by-maharera/40969

Homebuyers can now get details such as the progress of the construction, promoter’s name, hurdles in completion of a project, to registration date among other crucial details by just scanning a QR code on project registration certificates.

In a first-of-its-kind initiative, the Maharashtra Real Estate Regulatory Authority (MahaRERA) started a QR-code-based technological service that will help homebuyers get transparent information in a single scan.

Last week, MahaRERA issued the first QR-code-based project registration certificate to the Gera Planet of Joy Project in Wagholi, Pune. All newly registered projects will carry the QR code. The authority will also install the QR code on older project registration certificates in a phased manner.

Homebuyers can simply scan this QR code on project registration certificates visible on MahaRERA portal and the scan will generate relevant information about the project, including the name of the project, the promoter’s name and details, the completion date, the registration date, the statutory approvals received by the project etc.

The QR-code scan will also provide critical information to buyers like any changes in the approved plan of the project, and any extensions given to the project’s validity, any recovery warrants issued against the project. Homebuyers will get to know if there are any problems with the finances and timely delivery of the project using the information on complaints and warrants issued against the project.

“Now, homebuyers can also get crucial information under Form 5. Under RERA norms, it is mandatory for developers to provide updated information about the construction progress and financial updates every quarter and half-yearly. Home buyers will be able to access this information by simply opening the registration certificates of newly registered projects and scanning the QR code,” said a MahaRERA official, adding that the registration certificates for older projects will also be updated with the QR-code over a period of time.

Over 40,000 projects are presently registered with MahaRERA out of which 11,099 are completed. Over 20,783 complaints have been filed, and 14,049 orders have been issued on these complaints.

Stealing a march over other states, MahaRERA was the only state RERA authority portal which went live on May 1, 2017, the day Real Estate (Regulation and Development) Act 2016 came into existence. It is also the first to start the Conciliation Forum, an alternative grievance redressal mechanism where home buyers and developers can sit across the table with MahaRERA-appointed conciliators and settle complaints out of court. It was the first authority to geo-tag projects with information about social infrastructure around a registered project.

Source: https://www.hindustantimes.com/cities/mumbai-news/in-a-first-maharera-brings-in-qr-codes-to-help-homebuyers-get-transparent-info-101679942257557.html

As many as 3,244 property registrations took place in Mumbai on March 11 alone, generating Rs 249.42 crore in stamp duty and registration fees. The Maharashtra Department of Registration and Stamps informed that 46,811 conveyance deeds were also recorded on the day and a revenue of Rs 877.79 crore was generated.

Currently, the stamp duty fee is 6 per cent and registration charge is 1 per cent, excluding other taxes like metro cess and local body tax. Women homebuyers get a rebate of 1 per cent in stamp duty.
Real estate experts say that property registrations will do well in the high-budget luxury section as the tax on capital gains will come into effect from April. February also saw the highest revenue collection in Mumbai.

One of the major reasons behind the rise in sales in high-budget homes in Mumbai and other cities is believed to be Union government’s recent move to limit capital gains tax deductions to Rs 10 crore.
MahaRERA, the real estate regulatory authority, is also raising awareness among the homebuyers on how to save their money from getting stuck in any stressed project. It advised the property buyers to purchase only RERA-registered properties after a detailed background check.

MahaRERA also issued a list of dos and don’ts for real estate developers to update all such information in the public domain.

Source: https://www.timesnownews.com/mumbai/mumbai-sees-over-3000-property-registrations-in-11-days-article-98586266

To prevent fraudulent practices on the part of builders and developers, the Urban Development Department of the Maharashtra government Thursday directed all local bodies to upload permissions granted for commencement of construction and occupancy to builders for new and upcoming residential and commercial projects on their website and integrate them with the Maharashtra Real Estate Regulatory Authority (MahaRERA) before March 31, 2023.

These permissions are in the form of Commencement Certificates (CCs) that allow builders to start construction of a building and Occupancy Certificates (OCs) permitting residents to move into the building once the construction is complete.

In case the local bodies do not have websites for this purpose, the Urban Development department directed them to design and activate the websites and integrate them with MahaRERA before March 31, 2023. Meanwhile, all local bodies have been directed to email the permissions to MahaRERA. The local bodies will have to communicate updates in the permissions to RERA each time. A government resolution to the effect was issued by the Urban Development department on Thursday.

“In case of Mumbai, Brihanmumbai Municipal Corporation (BMC) already has a mechanism to publish these permissions online and integrate it with RERA,” an official said.

Last year, it had come to light that builders in Kalyan Dombivali constructed buildings without requisite permissions from the local bodies and sold apartments in these buildings by creating fraudulent documents of permission. A senior official said, “These documents are submitted to RERA with a self-declaration from the builder, who submits an affidavit. However, until now, there was no way for RERA to verify if these documents are original. If a fraudulent document is submitted with the signature of the concerned authority, it is taken as an original permission.”

“RERA wrote to the Urban Development department last year requesting it to develop a mechanism where documents can be verified, following which these provisions were made,” the official said.

Source: https://indianexpress.com/article/cities/mumbai/govt-local-bodies-construction-permissions-websites-maharera-8464551/

The aim of the MahaRERA mechanism is to bring transparency in the sector to help the homebuyer, its chairperson Ajoy Mehta said on Saturday.

He was speaking at a function organized by National Real Estate Development Council (NAREDCO) on ‘RERA Updates and Insights’ in Navi Mumbai.

“Only when the real estate industry survives will the homebuyer gain. We will hold workshops organised by MahaRERA and NAREDCO to help developers gain clarity over compliances,” he said.

While builder and NAREDCO vice-chairperson Niranjan Hiranandani said MahaRERA must speed up the process of giving approvals, Sanjay Dutt of Tata Realty and Infrastructure said institutional funds were flowing into the real estate industry at a good pace.

The industry is likely to attract investments of Rs 3 lakh crore over the next three to four years, Dutt claimed.

The Real Estate Regulatory Authority has helped the real estate sector gain respect due to regulations and professionalism, including the option for exit through deregistration of a project, NAREDCO president Rajan Bandelkar said.

Meanwhile, Sanjay Deshmukh, MahaRera nodal officer for lapsed projects, urged developers to improve the quality of the uploaded data.

“Around 75-80 per cent of participants were falling short on quarterly filing timelines,” he said. PTI COR BNM BNM

Source: https://theprint.in/india/maharera-brings-transparency-into-real-estate-sector/1381736/

The Maharashtra Real Estate Regulatory Authority (MahaRERA) on Friday issued an order laying down conditions that include protecting the rights of homebuyers.

The developers can now deregister their real estate projects themselves.

MahaRERA Secretary Dr Vasant Prabhu, in the order, cited instances where promoters who have registered their projects are unable to commence and complete the construction, or have commenced the construction but are not in a position to complete the construction.

The reasons could be lack of funds, economically unviable projects, litigations, inter se disputes, family disputes, change in planning, or government notifications. Keeping these projects registered with the authority is not beneficial for stakeholders, the regulatory body has said.

MahaRERA’s conditions for de-registration

Therefore, MahaRERA has now set out conditions for deregistration. Only projects where not a single booking has been received will be considered. In case there are purchasers, the onus to settle the rights of such allottees will be on the affected developer.

Additionally, if a part of the project getting deregistered is affecting the rights of the remaining project, two-third consent from allottees is mandatory while submitting the deregistration application. Aggrieved persons other than the builder can move MahaRERA by lodging a complaint.

Mixed reactions from real estate industry

In the real estate industry, this order has been received with mixed reactions. While realtors have welcomed it as it provides them an exit, the buyers are somewhat unhappy. Purchasers said there is a need to lay down more stringent conditions as the developers are known to not just keep home purchasers but also MahaRERA in the dark by not updating the status of the project. Moreover, the orders passed by the regulator are barely honoured by the real estate fraternity, earning MahaRERA the monicker of a toothless tiger.

Source: https://www.freepressjournal.in/mumbai/mumbai-maharera-offers-exit-option-to-realtors-but-with-conditions