Tag: maharera

In 2023, 1,702 real-estate projects registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA) have lapsed, owing to delays, according to data provided by the authority.

With this, more than 7,700 projects have lapsed since the inception of MahaRERA in May 2017.

This means real-estate developers cannot advertise, market or sell apartments in these 7,700 projects.

What is a lapsed project?

Every real-estate project, which is registered with MahaRERA, is given three to four years or more for completion. After this, a registration number is issued for the project.

The registration number is to be published by the developer in every advertisement or promotion activity. However, a project is termed as lapsed when the timeline given for completion is not met, and the developer has not applied for an extension despite the project being incomplete.

Once the registration of the project is declared lapsed, the developer cannot advertise, market, book, sell or offer to sell, or invite people to invest in these projects. Such projects cannot be registered by the Registrar of the revenue department, according to the provisions of the RERA Act, 2016.

Year-wise data

According to MahaRERA, in 2017, a total of 66 projects had lapsed, 342 in 2018, 783 in 2019, 624 in 2020, 1,341 in 2021, 2,845 in 2022, and 1,702 in 2023. This takes the total number of lapsed projects to 7,703.

What is MahaRERA doing?

The MahaRERA had, in June 2022, launched a special vertical for lapsed projects that are stuck owing to several reasons.

Over the past 16 months, the lapsed project vertical of MahaRERA has issued several notices to developers to come forward and ensure the stuck projects get on track.

“We have issued notices, divided projects into several buckets, issued non-compliance notices over non-uploading of quarterly progress reports (QPRs) and so on. Action is happening as we speak. We are also in the process of issuing notices to developers who do not upload QPRs on the MahaRERA’s website,” said a senior MahaRERA official.

The MahaRERA had, in February 2023, announced dividing projects into four groups, according to their current status. The first group includes projects that can be completed without compromising the rights of home buyers.

The second contains those where there is a need to reconcile developers and home buyers. In the third group are projects that require the MahaRERA’s intervention due to certain issues with local authorities or lending banks. And in the fourth category are projects in which the developer is missing and home buyers can complete the project by replacing the developer.

Grading of developers

MahaRERA had announced, on September 4, that it will start grading real-estate projects in the state from April 2024. This, MahaRERA maintained, will help homebuyers make informed decisions.

The grading matrix will be updated every six months of the financial year. The first quarter that will be considered for grading of projects will be October 1, 2023 to March 31, 2024.

The MahaRERA has set several parameters based on which grades will be given. One is based on the information uploaded by the developer on the MahaRERA website, followed by other parameters like technical details about the project, financial declaration about the project, bookings made, legal complications, complaints filed against the developer in a particular project and the overall project overview compliance etc.

Source: https://www.moneycontrol.com/news/business/real-estate/1702-real-estate-projects-lapse-in-maharashtra-in-2023-11563171.html

In order to increase the accountability of real estate developers towards the quality of real estate projects, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has proposed that developers make six monthly declarations on the quality of projects undertaken by them. For this, MahaRERA has sought suggestions from developers; these can be sent in by October 31.

MahaRERA is considering regulations on monitoring the quality of construction. For this, it is in the process of drafting a discussion paper that is expected to be made public in the coming days.

“MahaRERA is of the opinion that the quality of construction of projects can be controlled if regulations and procedures for effective implementation are laid down,” said a statement by MahaRERA on September 16.

“Most people invest their lifetime earnings in buying a home. After taking possession of the house, it is the developer’s responsibility to resolve these complaints free of cost for up to five years as per the defect liability period. However, in such a case, MahaRERA has decided to insist on quality construction in advance to ensure that homebuyers do not face problems after taking possession of the house,” said Ajoy Mehta, Chairman of MahaRERA, said.

He added, “Therefore, certain procedures and standards to be followed during construction are being decided. This will not only help in securing the interests of the customers but will also help in increasing the credibility of the real estate sector.”

Current provision under RERA Act for quality

Section 14(3) of the RERA 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 30 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 recognise 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 minimise the likelihood of defects occurring in the first place, said MahaRERA in a letter to the developers’ association.

It added, “MahaRERA proposes a proactive approach centred 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.”

“In light of this, MahaRERA is desirous of developing a framework for quality assurance reporting. It is proposed that developers should report on the quality of materials used, workmanship, etc. on a bi-yearly basis, which shall be displayed to homebuyers for informed decision-making. In this regard, we kindly request your valuable input for the development of a Framework for Quality Assurance for Real Estate Projects in Maharashtra. Please submit your input to suggestions.maharera@gmail.com by the deadline of 31 October 2023, MahaRERA’s letter to the developers added.

Source: https://www.moneycontrol.com/news/business/real-estate/maharera-proposes-bi-yearly-declaration-on-construction-quality-seeks-suggestions-from-developers-11531381.html

MahaRera has levied a cumulative fine of Rs 0.2 million on six developers in the Mumbai Metropolitan Region (MMR) for failing to include QR codes of project registration in their advertisements. Out of a total of 107 cases, show-cause notices were issued to 74 developers who did not print or display QR codes in their ads.
MahaRera has heard 25 of these cases related to MMR projects and imposed fines in six instances. For promoters who claimed their ads were issued without their knowledge, MahaRera has advised them to file cases with the cybercrime cell. The regulatory body is still in the process of hearing and determining penalties for the remaining cases and plans to send show-cause notices to the remaining 33 developers. MahaRera had mandated the inclusion of QR codes in all housing project advertisements from August 1.

MahaRera has been monitoring advertisements in newspapers and on online and social media platforms like Facebook, Twitter, and Instagram. They observed that a significant number of advertisements on online and social media platforms lack QR codes. Some promoters have claimed that the advertisements were not authorised by them or were issued without their knowledge, prompting MahaRera to direct them to involve the cyber crime cell. Advocate Avinash Pawar commended the move to penalise developers for non-compliance with QR code display rules but urged MahaRera to ensure the enforcement of earlier orders and fill vacancies within the regulatory body.
MahaRera has also urged homebuyers to exercise caution when viewing advertisements on social media to avoid potential scams. In addition to QR codes, homebuyers can verify project details by entering the registration number on the MahaRera website, where comprehensive project information is available.

Earlier this year, MahaRera imposed a collective fine of Rs 1.8 million on 90 developers for advertising projects without MahaRera registration numbers.

MahaRera has levied a cumulative fine of Rs 0.2 million on six developers in the Mumbai Metropolitan Region (MMR) for failing to include QR codes of project registration in their advertisements. Out of a total of 107 cases, show-cause notices were issued to 74 developers who did not print or display QR codes in their ads.
MahaRera has heard 25 of these cases related to MMR projects and imposed fines in six instances. For promoters who claimed their ads were issued without their knowledge, MahaRera has advised them to file cases with the cybercrime cell. The regulatory body is still in the process of hearing and determining penalties for the remaining cases and plans to send show-cause notices to the remaining 33 developers.
MahaRera had mandated the inclusion of QR codes in all housing project advertisements from August 1. MahaRera has been monitoring advertisements in newspapers and on online and social media platforms like Facebook, Twitter, and Instagram. They observed that a significant number of advertisements on online and social media
platforms lack QR codes. Some promoters have claimed that the advertisements were not authorised by them or were issued without their knowledge, prompting MahaRera to direct them to involve the cyber crime cell. Advocate Avinash Pawar commended the move to penalise developers for non-compliance with QR code display rules but
urged MahaRera to ensure the enforcement of earlier orders and fill vacancies within the regulatory body. MahaRera has also urged homebuyers to exercise caution when viewing advertisements on social media to avoid potential scams. In addition to QR codes, homebuyers can verify project details by entering the registration number on the MahaRera website, where comprehensive project information is available. Earlier this year, MahaRera imposed a collective fine of Rs 1.8 million on 90 developers for advertising projects without MahaRera registration numbers.

Source: https://www.constructionworld.in/latest-construction-news/real-estate-news/maharera-fines-developers-for-missing-qr-codes/45105

The Maharashtra Real Estate Regulatory Authority (MahaRERA) became the first real estate regulatory authority in the country to mandate an online examination for over 44,000 registered real estate agents in the state to obtain a MahaRERA Real Estate Agent Certificate of Competency before September 1, 2023.

However, less than 10 percent or around 3,400 of the real estate agents in Maharashtra have given this examination so far and cleared. Owing to this, the MahaRERA is working towards extending the deadline.

The competency exam clearance by MahaRERA means that the particular real estate agent is certified real estate agent where they are asked several questions in the written examination about consumer rights, RERA Act, and other knowledge of the real estate sector.

Meanwhile, homebuyers looking to invest in real estate in the festive season that will begin with Ganesh Chaturthi, should keep in mind the following things while choosing a real estate agent.

1) Check MahaRERA registration

The MahaRERA has made it mandatory for all real estate agents to register with the regulatory authority since May 2017. The MahaRERA has also mandated that real estate agents must display their RERA registration number and QR code on all promotional activities being carried out by them.

2) Check if the agent has appeared for competency examination:

The MahaRERA had in January 2023, mandated that all registered real estate agents should appear for a competency examination by September 01, 2023. As mentioned earlier, only around 10 percent of the agents have appeared for and cleared the same.

Hence, homebuyers should check if the real estate agent they are dealing with has cleared the competency examination or not.

The MahaRERA will issue a certificate to every real estate agent that clears the exam, and homebuyers can ask the agents to furnish this certificate.

3) Check if agent has progress reports on projects

The MahaRERA in February 2023, directed real estate agents to make half-yearly progress reports public from financial years 2023-24. In the progress report, MahaRERA had mandated that real estate agents will have to furnish information on developer projects they are representing, and other details, including transactions made in a particular real estate project, excluding the individual financial gains.

The real estate agents were asked to upload all these details on their respective web pages. Hence, homebuyers should check if the real estate agents they are dealing with are complying with the above regulations of MahaRERA.

4) Check if the developer has uploaded details of the registered real estate agent

Homebuyers should keep in mind that all real estate develoopers are mandated to deal only with real estate agents that are registered and compliant with MahaRERA regulations.

The developers are also expected to upload details of real estate agents they intend to deal with in particular projects on the MahaRERA web-page. Hence, homebuyers can find the names and details of real estate agents that are MahaRERA compliant, on these web-pages.

5) Cross verify details

Homebuyers should cross verify all the details given by real estate agents about a particular project with the MahaRERA web-page and the developers before investing in a particular project. Several details such as the carpet area, project completion date, amenities, litigation if any, permission status should be available on the MahaRERA portal along with details of the developer.

Source: https://www.moneycontrol.com/news/business/real-estate/5-things-homebuyers-in-maharashtra-must-look-for-in-their-real-estate-agent-11356661.html

PUNE: The MahaRERA cleared 323 of the total 1,100 project registration applications in the last three months following due verification by the respective local bodies.

A majority of the applications cleared (117) was from Pune district, followed by Raigad (52), Thane (48) and Mumbai suburban (35). From June 19, the Maharashtra Real Estate Regulatory Authority (MahaRERA) started granting registrations only after verification of commencement certificates (CC) issued by the civic bodies. “Only 323 applications have been cleared in the last three months. The rest are in the process,” a senior MahaRERA official said on Tuesday.

The local bodies have been directed to either integrate their website with that of the real estate authority or send separate emails with the CC. “Only Brihanmumbai Municipal Corporation (BMC) has initiated the process of integrating its website with that of MahaRERA, while the others are sending emails to the authority,” the official said. Seventy-five builders submitted the CCs personally to MahaRERA, but their applications were not cleared. “Unless MahaRERA receives the CCs from the civic bodies concerned, we will not clear the registration applications,” the official said.

MahaRERA officials said after the local authorities email the CCs, they are compared with those provided by the developers. “The authority made the clearance mandatory from the local authority after bogus documents were submitted for project registration in Kalyan-Dombivli, which led to the de-registration of the projects. A similar issue came to fore in in the Vasai-Virar area last month,” another MahaRERA official said.

Following such fake documents, MahaRERA had asked the state’s urban development department to put in place a system wherein all approvals granted for real estate projects, such as commencement and occupation certificates, are displayed on a dedicated portal by the respective competent authorities to be verified by both the buyers as well as MahaRERA.

“A coordinated system from local authorities will help bring in necessary checks,” said Murli Nair, who recently booked a flat in a MahaRERA registered project in Pune. Maharashtra Society Welfare Association chairperson Ramesh Prabhu
said, “MahaRERA needs to engage the services of some agencies for physical inspection of sites and documents before granting registration to avoid any fraudulent activity.”

Source: https://realty.economictimes.indiatimes.com/news/rera/maharera-clears-323-project-registration-applications-in-three-months/103489846

The introduction of RERA has not only brought transparency in the real estate segment but also made timely completion of projects a buyers’ right, averred Ajoy Mehta, IAS and chairman, MahaRERA, on Saturday.
Speaking as a chief guest at the special general body meeting of CREDAI Pune Metro here, he said, “In projects launched pre-RERA, MahaRERA has had received complaints against 23 per cent of the projects, whereas in projects launched post RERA, complaints have been received against 3-5 per cent of projects only.”

Emphasising the benefits of RERA, he informed that “Before RERA came, there was a lack of transparency in the real estate sector. The buyers did not even know if the developer had all the necessary permissions to start the project. Timely completion was a privilege earlier, not a right. However, post the introduction of RERA, it is a legal right.” Mehta further said that a regulatory body like RERA was needed for the real estate sector because of its sheer magnitude of scale in terms of customers and financials.

“Almost 60 per cent of the resources of middle-class home buyers are utilised for buying a home. Today, in Maharashtra, about 14 lakh home buyers are waiting for the delivery of their homes. The investments that have gone in these projects are to the tune of Rs 1.6 lakh crore,” he added. Mahesh Pathak, IAS, member 1 MahaRERA, office-bearers of CREDAI Pune Metro including Ranjit Naiknavare newly elected president, Shrikant Paranjape, Manish Jain, Ashwin Trimal and Aditya Javdekar were also present on the dais on the occasion. While, representatives of other associations related to real estate and about 200 members of CREDAI Pune Metro were present for the meeting.

Source: http://www.uniindia.com/rera-brought-transparency-in-real-estate-segment-maharera-chairman/business-economy/news/3020595.html

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/