Tag: maharera

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

Maharashtra’s realty regulator on Thursday said it has suspended the registration of 20,000 real estate brokers, leaving only 13,000 such registered agents in the state. There were a total of 47,000 agents registered with the regulator, which began the registration of the middlemen for property transactions in 2017.

Earlier this year, it cancelled the registration of 13,785 agents for not renewing their licenses.

The registrations of an additional 20,000 agents have been suspended for one year for not obtaining MahaRERA’s real estate agent certificate of competency or not uploading the certificate on the watchdog’s website, an official statement said.

Licenses of these 20,000 agents can be renewed if they complete training, obtain the certificate of competency, and upload the same on the portal within a year, it added.

According to an official, about 5,500 new candidates are likely to appear for the examination to get registered as agents next month. The body’s chairman Ajoy Mehta said an agent plays an important role and it is essential for them to be well-versed with the Real Estate (Regulation and Development) Act, 2016 regulation.

“MahaRERA has made it mandatory for agents to undergo training, clear the examination, and obtain certification. This decision was taken on January 10, 2023, and was extended multiple times before finally becoming binding for all agents on January 1, 2024,” he said.

Despite this, around 20,000 agents operating are still unqualified and their approval was suspended, he said, warning that the regulator will not hesitate to cancel the registration of developers who will continue to engage with the unqualified agents.

Source: https://realty.economictimes.indiatimes.com/news/rera/maharera-suspends-registration-of-20000-real-estate-brokers/110366477

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced comprehensive regulations and specifications for retirement and senior citizen housing, applicable across Maharashtra. These guidelines, detailed in a recent circular, focus on essential aspects such as building design, green building principles, lifts & ramps and safety and security.

Compliance with these minimum physical specifications is mandatory for executing these projects. Developers will now need to incorporate these provisions in the agreement for sale, as the regulation takes effect across Maharashtra.

Previously, in February, MahaRERA had issued a circular on draft model guidelines for retirement and senior citizen housing projects, inviting suggestions and views from stakeholders. The positive response led to the inclusion of several useful suggestions, enhancing and strengthening the final guidelines.

The draft guidelines were based on model guidelines issued by the Ministry of Housing and Urban Affairs. MahaRERA’s objective is to ensure a standardised code for all senior citizens’ housing projects, according to officials.

Key provisions include the requirement for all buildings with more than one floor to have an elevator accessible for wheelchairs and
mobility equipment.

Internal and external building designs that facilitate the free movement of wheelchairs, including ramps, door openings not less than 900 mm with a preference for sliding doors, lifts equipped with audio-visual signage, at least one elevator large enough to accommodate a stretcher and paramedic staff, and staircases with a width of not less than 1500 mm, among others.

These guidelines are now in effect in the state. Any future project proposal for senior citizen housing must comply with these guidelines during implementation, MahaRERA states.

Source: https://indianexpress.com/article/cities/mumbai/maharera-specifications-retirement-homes-senior-citizen-housing-9333631/

INTRODUCTION: The Maharashtra Real Estate Regulatory Authority (MahaRERA) is soliciting feedback on its Draft Regulation for Quality Assurance, emphasizing the importance of proactive measures in ensuring the quality of construction. Under the Real Estate (Regulation and Development) Act, 2016, MahaRERA is empowered to enforce standards that safeguard the interests of homebuyers.

DETAILED ANALYSIS

1. LEGAL FRAMEWORK: Section 14(3) of the Act mandates promoters to rectify defects within a specified period. However, MahaRERA seeks to go beyond mere rectification by instating measures to prevent defects in the first place.

2. PROACTIVE APPROACH: MahaRERA’s focus is on quality assurance as a preemptive measure rather than a reactive one. By ensuring strict adherence to quality standards throughout the construction process, the aim is to minimize the occurrence of defects and subsequent rework.

3. QUALITY PARAMETERS: The proposed Quality Assurance Certificate encompasses four key parameters: Structural Design, Stability, and Testing Quality of Input Materials Quality of Workmanship Miscellaneous Factors

4. RESPONSIBILITY: The certificate, to be submitted annually, holds the promoter accountable for maintaining standards prescribed by MahaRERA. It emphasizes the importance of structural integrity, material quality, skilled labor, and adherence to regulatory requirements.

5. CONSULTATION PROCESS: MahaRERA invites stakeholders to provide suggestions and views on the draft regulation, underscoring the collaborative effort to enhance quality standards in the real estate sector.

CONCLUSION: MahaRERA’s initiative to solicit feedback on the Draft Regulation for Quality Assurance signifies a proactive stance towards ensuring high standards in real estate development. By incorporating preventive measures and rigorous quality checks, MahaRERA aims to instill confidence in homebuyers and elevate the reputation of the industry. Stakeholder participation is pivotal in shaping regulations that promote sustainable and quality-centric practices, ultimately benefitting both buyers and developers.

Complaints that MahaRERA receive are of various nature, such as, building’s beam obstructing parking of vehicle, vehicle cannot be parked in the parking, vehicle door cannot be opened to exit, manoeuvring space inadequate, etc.

Mumbai: Several complaints have been received by the Maharashtra RealEstate Regulatory Authority (MahaRERA) with regards to parking spaces sold and allocated by the developers. Taking serious cognizance of this and to prevent a recurrence, the housing regulator has made it mandatory to include all details related to parking as part of annexures to the Allotment Letter and Agreement for Sale.

The complaints that MahaRERA receive are of various nature, such as, building’s beam obstructing parking of vehicle, vehicle cannot be parked in the parking, vehicle door cannot be opened to exit, maneuvering space inadequate, etc.

MahaRERA has issued a model draft clause as per of circular’s annexure, to be included in the legal documents, which includes all the details regarding the parking lot number, parking length, height, width, location of the parking block, etc. in the building. This
standard clause is to prevent any ambiguity or disputes at a later stage and is mandatory for promoter to annex this with Allotment letter and Agreement for Sale.

Details of model agreement for sale, issued in december 2022

In the Model Agreement for Sale, issued in December 2022, mention of Force Majeure, Carpet Area, Defect Liability Period and Transfer Agreement have been made mandatory in every agreement for sale. Now, parking in another aspect that has been made non-negotiable and any changes made despite the consent of a homebuyer, will not be accepted by MahaRERA.

Therefore, MahaRERA insists on strict adherence to the circular and the standard draft clause stating complete details about a parking slot. This will prevent any inconvenience and agony over parking premises that a homebuyer otherwise faces after moving into a new residence.

MahaRERA’S project grading system aims to empower homebuyers with transparent insights into real estate projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) had suggested last year, a project grading system in order to help homebuyers make an informed decision. That plan may soon see the light of the day, as MahaRERA is expected to launch the grading system soon.

The grading will be based on four key parameters—technical, financial, legal, and project overview; and will evaluate projects every six months in a bid to keep homebuyers aligned with the construction progress. As a part of this process, all projects launched from January 2023 onwards will be graded.

However, since this is still a pilot project, MahaRERA is expected to first provide project information/analysis without assigning a grade to the project. This information would enable homebuyers to evaluate if the project is on the right track; the actual grades could take a few more years to be rolled out.

Industry experts, however, also feel that a few more parameters should be taken into account in order to provide a holistic overview.

Some of the key parameters are as follows:

Construction Quality: Assessing the track record of the developer in terms of construction quality, materials used, and adherence to building codes and regulations.

Environmental and Sustainability Factors: Considering the project’s impact on the environment, its compliance with sustainability standards, and the incorporation of energy-efficient measures, waste management systems, and green building practices.

Track Record of Developer: Assessing the reputation and past performance of the developer, including timely completion of previous projects, compliance with regulatory norms, financial stability, and adherence to customer commitments.

Customer Feedback: Incorporating feedback from existing customers of the developer or similar projects to assess customer satisfaction, and after-sales service, and address any potential issues.

– Ritesh Mehta, senior director and head (North and West), residential services and developer initiative, JLL India

Promptly updating grades assigned to each project on MahaRERA’s website, explaining how each parameter is assessed and graded, ensuring that the website’s interface is user-friendly enabling homebuyers to check grades with ease, and an effective feedback mechanism for homebuyers to raise concerns or grievances related to project evaluations should be implemented to make this grading system more robust and effective. Additionally, engaging competent third-party agencies for these audits will make them more authentic,” adds Ravi Shankar Singh, managing director, of residential transaction services, at Colliers India.

“MahaRERA could also take initiatives to educate buyers on how to interpret these grades and reports, helping them understand what these evaluations mean for their investment. There should also be a clear and fair process for developers to appeal their grades if they believe the evaluation was not accurate or fair. MahaRERA could consider incentives for projects that achieve high grades, such as faster approval processes or recognition in MahaRERA publications, to encourage quality and compliance,” suggests Prashant Sharma, president, NAREDCO Maharashtra.

Developers are optimistic about this move, however, there are a few concerns, “The process of information seeking from developers for this rating should be minimalistic in its philosophy, as developers are already providing a vast amount of data for RERA registration. An ideal way would be to integrate the data requirement in one place rather than two separate data requirements. It should also be mandatory for every developer to display the project rating prominently along with the RERA registration number,” suggests Harmohan Sahni, CEO, Raymond Realty. “Overall, the sector will benefit from this proactive approach, which fosters responsible practices and builds trust between buyers and developers,” concludes Manju Yagnik, senior vice president, NAREDCO Maharashtra.

The Maharashtra Real Estate Regulatory Authority’s (MahaRERA) strict action against erring developers violating RERA rules have resulted in developers filing the quarterly progress reports (QPR) on the MahaRERA portal on their own, the authority said in a statement.

The quarterly progress report (QPR) provides quarterly updates on project status to home buyers and prospective investors about the way the project will be developed. It is imperative that all developers registered under the RERA update the QPR on time. However, even after notices on strict actions, a sizable number of developers don’t update their QPR page on the MahaRERA portal.

The MahaRERA had taken stringent action against developers including serving notices on suspending their projects in January 2023 when the ratio was 2 out of 746 developers (0.03%) complying with MahaRERA. In June 2023, the number improved with 333 out of 633 developers (52.6%) following the rules mentioned under the RERA Act and filing QPRs on time.

“In order to closely and effectively monitor these regulatory provisions, MahaRERA has implemented a financial quarter-based project progress reporting system from the first quarter of the projects registered from January 2023. MahaRERA has also taken action to suspend direct registration of projects that do not submit quarterly forms,” mentioned Ajoy Mehta, chairman, MahaRERA, according to media reports.