Category: HI & RERA

A pan-India homebuyers’ body has approached the Ministry of Housing & Urban Affairs (MoHUA), raising concerns over the functioning of conciliation forums established by the Real Estate Regulatory Authorities (RERAs) across several states.

The Forum for People’s Collective Efforts (FPCE) has called on the Ministry to take immediate action, urging it to issue guidelines that would ensure the independence and impartiality of such forums across all states. It has also requested a suspension of all conciliation forum activities until these guidelines are in place.

The association, for instance, has pointed out irregularities in the Conciliation Forum constituted by the Maharashtra Real Estate Regulatory Authority (MahaRERA). In a letter addressed to the ministry, the FPCE has alleged that the forum is heavily skewed in favour of developers, compromising the rights and interests of homebuyers.

The homebuyers’ association has raised issues regarding the very constitution of the MahaRERA Conciliation Forum, arguing that it oversteps the powers granted under section 32 of the Real Estate (Regulation and Development) Act, 2016 (RERA).

The section allows for the promotion of dispute settlement forums by consumer or promoter associations, but the FPCE asserts that MahaRERA has taken the authority into its own hands by not only constituting the forum but also playing an active role in it. The Secretary of MahaRERA currently chairs the forum, which the FPCE claims is a clear conflict of interest.

“The forum’s composition itself is evidence of its bias. With only one consumer organization represented compared to three developer organizations, and an individual representative ratio of two to six in favor of builders, the forum’s structure appears to favor developers,” Abhay Upadhyay, president, FPCE, told ET. The association also pointed out the lack of transparency in the selection criteria for consumer organizations, suggesting that these may have been handpicked to align with the forum’s pro-developer stance.

The FPCE alleges that complainants are being pressured to engage with the conciliation forum. Those who refuse and choose to pursue their complaints directly with MahaRERA are reportedly met with delays and postponements, with hearings being dragged out over the years. “This situation leaves complainants with little choice but to settle disputes through the forum, where they are unlikely to receive fair treatment,” said Upadhyay, who is also a member of the RERA Central Advisory Committee (CAC).

The FPCE has also criticized the lack of transparency surrounding the forum’s proceedings.

According to Upadhyay, there is no publicly available information on the outcomes of the cases handled by the forum, nor on how many of its orders have been enforced against non-compliant developers. The association contends that this opacity undermines the very purpose of RERA, which is to bring transparency and accountability to the real estate sector.

Moreover, the FPCE has expressed concerns about the broader implications of this forum, pointing out that once a case enters the conciliation process, it cannot be revisited in full by MahaRERA, even if the builder fails to comply with the conciliation orders. This, the association argues, further tilts the balance in favour of developers, who can easily bypass stricter regulatory oversight by engaging in the conciliation process.

In addition to its suggestions regarding conciliation forums, the FPCE has also recommended that a cooling-off period be instituted for RERA officials, barring them from joining real estate firms or associations for five years after leaving their positions.

The association’s concerns have been exacerbated by the fact that the former Chairman of MahaRERA, under whose tenure the conciliation forum was established, has since joined a developers’ organization. This has raised questions about the forum’s original intent, with the FPCE alleging that it was designed to protect the interests of developers rather than homebuyers.

Source: https://economictimes.indiatimes.com/industry/services/property-/-cstruction/homebuyers-body-seeks-housing-ministrys-intervention-over-rera-conciliation-forum/articleshow/112784409.cms?from=mdr

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has made it mandatory for real estate developers to mention the exact date by which facilities and amenities will be made available to homebuyers along with the expected date of obtaining the occupation certificate (OC).

It will now be mandatory for real estate developers to specify the proposed date of delivery of these facilities and amenities as well as the area they will cover in Annexure-I of the Agreement for Sale. This provision, which is expected to help homebuyers, is non-negotiable and developers will not be at liberty to alter the same, the MahaRERA said in a statement on July 31.

MahaRERA has also made it mandatory for developers to provide details of the expected date of Occupancy Certificate (OC) for the project, size of the facilities and amenities, whether it is a project being constructed by the developer or has been acquired, if the project is free of Floor Space Index or not as per the rules and regulations of the local planning bodies, said the MahaRERA statement.

MahaRERA said that at the time of booking an apartment, real estate developers often offer attractive facilities and amenities to homebuyers. However, in most cases, these facilities and amenities are not complete even after the buyers move into the project. It has therefore now made it mandatory for the developers to specify the date of delivery of these facilities in the Agreement for Sale’s Annexure-I.

The MahaRERA said that amenities for which the delivery timelines will have to be mentioned in the agreement for sale include swimming pool, tennis court, badminton court, theatres, club house, gymnasium, table tennis area, squash court, giant chess area, garden, senior citizen zone, jogging track, juice bar, children play area, among others.

The move will make it binding on the developers not to violate delivery of the facilities and amenities as committed to the homebuyers, MahaRERA’s statement said.

The MahaRERA, in April 2024, had published a draft order on the issue and invited public suggestions and opinions. Thereafter, based on the feedback received, the MahaRERA has taken this decision.

“When advertising their new housing projects, developers often promote a variety of attractive facilities and amenities alongside the actual apartments. However, there is no mention of when the proposed facilities and amenities will actually be made available,” said Ajoy Mehta, chairman of MahaRERA.

“It has been observed that many homebuyers have been affected by these shortcomings and have taken a serious note of this issue. After providing all stakeholders ample opportunity to express their views, it has now been made mandatory to specify the delivery timeline for all the promised facilities and amenities in the Schedule II of the Agreement for Sale,” Mehta added.

Usually, larger housing projects are spread over multiple phases and in such instances, often, multiple amenities are made available only on completion of the last phase. To ensure residents in the earlier phases are aware about the availability of the facilities and amenities, it now is mandatory to provide a phase-wise and date-specific information of the same, according to MahaRERA.

Additionally, MahaRERA has mandated that developers provide a comprehensive detail of the facilities and amenities in Schedule-II of the Agreement for Sale.

“In the eventuality of any major revisions or changes or corrections or relocation of the specified facilities and amenities or public areas, an approval from MahaRERA is a must. Without such an approval, any and all changes will be considered invalid and illegal,” the MahaRERA said in a statement.

“It will also be mandatory for the developers to obtain consent of two-third of the residents if changes are about location and numbers of families and amenities. In other words, developers will not be able to make changes unilaterally, the MahaRERA statement further added.

Source: https://www.hindustantimes.com/real-estate/maharera-makes-it-mandatory-for-real-estate-developers-to-mention-delivery-date-of-amenities-and-occupation-certificate-101722425501541.html

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced that a total of 5,260 real estate agents will appear for the fifth competency examination to be conducted by the Authority on July 29 across 24 centres in Maharashtra.

Of the 5,260 candidates, 3,081 are from the Mumbai Metropolitan Region (MMR), 1,533 from Pune, 518 from Nagpur, the MahaRERA said in a statement.

According to MahaRERA, till now four batches have appeared for the examination and 9,295 real estate agents have cleared it.

The MahaRERA in January 2023 had made it mandatory for real estate agents to undergo training and obtain the prescribed certificate of registration. A failure to do so will lead to MahaRERA suspending registrations of such real estate agents.

There are around 47,000 agents registered across Maharashtra. Of these, registrations of 13,785 agents have been cancelled due to non-renewal. In April, MahaRERA had suspended registration of over 20,000 agents who failed to comply with the training and certification requirements.

“They will have to comply with the mandatory requirement to resume operations in the real estate sector. Due to the action initiated, the number of candidates appearing for the upcoming test has increased to over 5,000 from around 1,700 in the previous edition,” the MahaRERA said in a statement.

“In the real estate sector, an ‘agent’ plays a crucial role for homebuyers and developers. Therefore, it is imperative for the agents to be well-versed in the provisions of RERA Act. Therefore, MahaRERA has made it mandatory for the agents to undergo training, pass an exam to obtain certification. Failure to comply within the stipulated time frame to obtain this certification will result in tough decisions,” Ajoy Mehta, Chairman of MahaRERA said.

In February 2023, the MahaRERA had directed real estate agents to make half-yearly progress reports public. This mandates furnishing information on projects where they have been designated by developers to handle sales.

Source: https://www.hindustantimes.com/real-estate/maharera-to-hold-fifth-exam-for-5-260-real-estate-agents-in-maharashtra-to-protect-home-buyers-interests-101721802816576.html

Details of real estate project grading are likely to be made public by the Maharashtra Real Estate Regulatory Authority (MahaRERA) in a month. The MahaRERA intends employing artificial intelligence (AI) tools to grade these projects, Ajoy Mehta, chairman of MahaRERA.

The MahaRERA in September 2023 had announced that it will start the process of grading real estate projects in Maharashtra. The regulatory authority had chosen four parameters based on information uploaded by developers. These are technical, financial and legal details, and project overview. Information about these parameters would be displayed for homebuyers to help them take a decision.

The MahaRERA is working on a system that will ensure that the real estate projects are graded with the help of artificial intelligence (AI) tools with minimal manual intervention.

‘Norms on what basis we will grade real estate projects are ready. We had put out a discussion paper for grading and we have already received suggestions and objections for the same, which have also been incorporated,” said Mehta.

“It will take time for the entire new IT system to be ready. However, we are hoping that the new system for grading real estate projects through AI-based tools will be ready in the next 15 to 20 days. I think we should be able to go live with the grading in the next one month,” he said.

According to MahaRERA, the grading matrix will be updated every six months of the financial year. “The first period will be from October 1, 2023 to March 31, 2024. The grading matrix shall commence once the due date for uploading the last quarterly progress report (QPR) is done by April 20, 2024,” MahaRERA had announced in September 2023.

In Maharashtra, more than 46,000 projects have been registered since MahaRERA came up in May 2017 and more than 15,000 projects have been completed. The MahaRERA, since its inception, has received more than 25,000 complaints of which more than 17,000 have been settled, according to the MahaRERA data.

Source: https://www.rprealtyplus.com/news-views/maharera-to-soon-announce-real-estate-project-grading-details-115971.html

Real Estate (Regulation and Development) Act 2016 places significant emphasis on the Quality of Construction.

Section 14(3) of the Act stipulates that “In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge within thirty days, and in the event of the promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act.”

While the Act does provide remedial measures for defect rectification, it is essential to recognize that the best approach to safeguarding the interests of homebuyers is not limited to offering remedies after defects have surfaced. Instead, the focus should be on establishing processes and standards that minimize the likelihood of defects occurring in the first place.

MahaRERA’s Proactive Approach to Quality Assurance

MahaRERA proposes a proactive approach centered on quality assurance as its primary objective. This approach supports preventing defects from arising initially, thereby obviating the need for costly rework. By ensuring rigorous standards of material quality and workmanship throughout the construction process, real estate projects can be executed with a defect-free outcome that adheres to strict quality standards.

This proactive stance not only benefits homebuyers by delivering high-quality homes but also contributes significantly to the sustainability and reputation of the real estate industry. It highlights the importance of quality assurance as a preemptive measure rather than just a reactive one, ultimately bolstering the trust and confidence of homebuyers in the real estate market.

In light of this, MahaRERA has developed a Quality Assurance Certificate wherein the promoter shall report on a yearly basis on the following four parameters:

1. Structural Design, Stability, and Testing
2. Quality of Input Materials
3. Quality of Workmanship
4. Miscellaneous

The declaration shall be displayed to homebuyers for informed decision-making. Therefore, MahaRERA has prepared a draft declaration on Quality Assurance to be given by the Site Supervisor/Site Engineer, duly certified and submitted by the promoter on a yearly basis. The proposed Form 2A shall replace the existing Form 24.

Source: https://maharera.mahaonline.gov.in/Site/Upload/Pdf/INVITING%20SUGGESTIONS%20ON%20DRAFT%20REGULATION%20FOR%20QUALITY%20ASSURANCE_1.pdf

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has kept the registration of 1,750 lapsed housing projects across the state in abeyance and has initiated measures to take similar action on additional 1,137 projects.

Of these 1,750 projects, the Mumbai Metropolitan Region has the highest number of 761 projects kept in abeyance. The Pune region, with 628 projects, has the second highest number of such projects, followed by North Maharashtra at 135, Vidarbha at 110, Marathwada at 100, Dadra Nagar Havel at 13, and Daman at 3.

The real estate regulator has urged homebuyers to be cautious while investing in any of these projects. The complete list of these suspended projects is available on MahaRERA’s website.

Mentioning the proposed date of the project’s completion is mandatory for developers applying for MahaRERA registration. If the project is completed after this declared project completion date, the developer will be required to submit an Occupancy Certificate i.e. Form IV to MahaRERA.

In case the project remains incomplete, the developer will have to initiate the registration renewal process. In the event of any challenges in starting the project, an application for the project’s de-registration is necessary.

If none of the above measures are taken by the developer, then such a project is declared as lapsed after its proposed completion date. Once a project is declared lapsed, its bank accounts are sealed. The developer is also barred from advertising, marketing the project, and selling and registering the flats in it.

Owing to such reasons, the MahaRERA had issued a 30-day show cause notice to developers of 6,638 projects across Maharashtra. Of these, 3,751 projects have either submitted an Occupancy Certificate or applied for renewal of registration, or filed for project cancellation.

Of the remaining 2,887 projects, MahaRERA has kept 1,750 in abeyance and initiated steps to suspend 1,137.

Source: https://realty.economictimes.indiatimes.com/news/rera/maharera-keeps-registration-of-1750-lapsed-housing-projects-in-abeyance/110871748

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed the builder of Godrej 24, a Hinjawadi-based project, to pay an interest amount for a delay in giving possession of a flat to an Army officer.

The officer had moved a petition against Pearlite Real Properties Private Limited also for providing him a stack parking slot while promising a covered car parking.

Lieutenant Colonel Pratap Rajnish Singh booked a flat in a project known as Godrej 24 in 2017. According to the terms and conditions mentioned in the agreement, the date of possession promised by the builder was September 30, 2021. Later, the builder obtained an extension for the said project as a grace period till September 30, 2022. However, the possession was given to the complainant in January 2023.

Singh had moved MahaRERA in this regard. Recently, the MahaRERA coram Mahesh Pathak partly allowed the complaint and directed the builder to pay interest for the delay from October 2022 for every month till the actual date of possession of the said flat to Singh till January 2023 on the actual amount paid by the complainant towards the consideration of the said flat at the rate of Marginal Cost Lending Rate (MCLR) of SBI plus 2% as prescribed under the provisions of Section 18 of the RERA.

Advocate Gandhar Sonis, who appeared on behalf of the complainant, highlighted that several issues like car parking and water supply etc. were still not solved despite the complainant making regular and timely payments to the builder.

The issue of car parking was solved only when the complaint was filed with MahaRERA. As per the mandate of Section 18(1) of RERA, which clearly states that “if the allottee does not intend to withdraw from the project, he shall be paid by the builder interest for every month of delay till the handing over of the possession at such rate as may be prescribed”, has to be taken into consideration and the legislative intent behind granting interest for delayed possession should not frustrate.

The respondent reiterated the facts stated in the written submission. Additionally, the respondent contended that the said project was constructed as per the approved plans and the contentions of the complainant to provide amenities as per brochure is false and no material record is placed on record.

The respondent stated that proper water connection and gas connection are provided in the said building as per the sanctioned plans and the project is complete in all aspects within time. Hence, the complaint of the complainant be dismissed.
The Occupancy Certificate (OC) for the said project was obtained on March 20, 2023, and the possession was offered to them in September 2022.

But after perusing the entire record the MahaRERA observed that the Builder failed to show any cogent documentary proof on record that they ever intimated the said OC to the complainant and offered possession of the said flat with OC despite directions being given to it.

The MahaRERA also put forth light on Section 19(10) of the RERA which provides that “every allottee shall take physical possession of the flat within a period of two months of the occupancy certificate issued for the said building”.

Source: https://punemirror.com/pune/others/maharera-tells-builder-to-pay-buyer-for-delay-in-giving-flat/cid1718881049.htm