RERA Maharashtra, the Real Estate Regulation and Development Act of 2016, was finally set into motion in May of 2017. This law aimed to implement, guide, and supervise the real estate sector in the state of Maharashtra. The Maharashtra Real Estate Regulatory Authority, which is known as the Maharashtra RERA or MahaRERA for short, is the body that governs the real estate sector in the state.
RERA stands for Real Estate Regulatory Authority. It is a government body that aims to create a more fair and transparent real estate market in India.
• Here Are Some Key Points About Rera:
- Established In 2016: RERA was established under the Real Estate (Regulation and Development) Act, 2016 to regulate India's real estate sector.
- Regulation Of Real Estate Projects: RERA regulates residential and commercial real estate projects. It ensures that developers register their projects with RERA and provide details about the project, including the project plan, timeline, and costs.
- Protection Of Homebuyers: RERA aims to protect homebuyers from fraudulent activities by developers. It provides a platform for homebuyers to file complaints against developers who violate the RERA rules.
- Registration Of Real Estate Agents: RERA also regulates real estate agents. Agents must register with RERA to practice in the real estate sector.
- State-wise Implementation: RERA is implemented state-wise. Each state has its own RERA authority, which is responsible for regulating the real estate sector in that state.
- RERA ID: Each project registered with RERA is assigned a unique RERA ID. Homebuyers can check the RERA ID of a project to ensure that it is registered with RERA.
- Complaint Redressal: RERA has a complaint redressal mechanism. Homebuyers can file complaints against developers who violate RERA rules, and RERA will investigate and take appropriate action.
-Penalties For Non-compliance: Developers who violate RERA rules can face penalties, including fines and imprisonment.
• The Benefits of RERA Maharashtra
1. Sper High Levels Of Transparency:
Before the introduction of the RERA Act, there was a void in the space of transparency that existed in the real estate sector. Because of this, the buyers were left at the mercy of developers to obtain possession of property that they have/had purchased. Also, promoters and developers could publish non-factual advertisements, etc, and this would mislead the people. Though, now, with the introduction of Maharashtra RERA registration, the consumer is provided with all the necessary information that is related to the project that he/she has purchased. The developer has to, by the law, adhere to the registration of the project with RERA. The builder is also expected to report on its progress, intimate about delays if any. If delays are incurred, for whatever reason, the developer may be penalised. In addition to the above, the buyers have the right to question each step involved in both the development and promotion of the construction and the advertising of the home.
2. Adherence To Law And Order:
Now, post-RERA Maharashtra coming into force, there is no scope for developers to channel the funds that are collected from investors and then redirect them to some of their other projects. The down payment rate has also been fixed at 10%. And, noncompliance to RERA provisions attracts penal action of imprisonment for a span of up to 3 years in addition to a financial penalty.
3. Accountability:
It has been made mandatory for the developers to deposit a sum of 70% of all the funds that are paid towards a particular project into a single account. These funds are then to be used only for construction or cost of land purposes exclusively. The developers must also report progress periodically on the project to the regulatory authorities, and failure to do so could lead to recrimination.
4. Increased Trust:
Perhaps the most significant benefit that customers have is the reinforced trust in the real estate sector because of RERA Maharashtra. This has led to a reinvigoration of the industry and greater confidence among property buyers.
The RERA Maharashtra portal is indeed one of the best-equipped tools online with provisions, that make it easy for the user to find their abodes at their convenience, keeping in mind MAHA RERA rules
Also Read: Affordable Properties From Thane Urban Navi Mumbai
• Which Projects Can Get Rera Approval?
Below are the basic characteristics of a RERA registered project👇
-Commercial and residential developments, as well as plotted developments.
-Projects with a total area of more than 500 square metres or eight units.
-Projects that were not completed before the Act went into effect.
-The project will not be covered by RERA if it is solely for renovation, repair, or redevelopment and does not include re-allotment, marketing, advertising, selling, or fresh allotment of any plots, apartments or buildings in the real estate project.
-Each phase will be treated as a separate real estate project that will require a new registration.
• How To File A Complaint Under RERA ?
- Step 1: Visit the State's official website and search for the page of Complaint Registration
- Step 2: Click on the complaint registration link
- Step 3: Fill in the required information such as:
- Complainant name
- Complainant type (Promoter/ Real Estate Agent / Allotee / Other)
- Nature of interest in the project
- Address of existing office/residence of the complainant
- Step 4: Submit the complaint and attach the required documents
- Step 5: Pay the required fees for filing the complaint
- Step 6: Wait for the authority to process and respond to your complaint
Additionally, you can approach the MahaRERA Conciliation Forum for dispute resolution with the help of neutral mediators
(A) Following offences are alleged to have been committed by builder in connivance with each other under Indian Penal Code 1860.
-When such an act is criminal by reason of its being done with a criminal knowledge of
-intention : Section 35
-Effect caused partly by act and partly by omission : Section 36
- Co-operation by doing one of several acts constituting an offence : Section 37
-Persons concerned in criminal act may be guilty of different offences : Section 38
-Abetment of a thing : Sections 107 and 108
-Furnishing false information : Section 177
- Using evidence known to be false : Section 196
-False statement made in declaration which is by law receivable as evidence : Section 199
- Intentional omission to give information of offence by person bound to inform : Section202
-Giving false information respecting an offence committed : Section 203
-Theft : Section 378
- Extortion : Section 383
-Dishonest misappropriation of property : Section 403
- Criminal breach of trust : Section 405
- Cheating : Section 415
- Cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect
- Cheating and dishonestly inducing delivery of property : Section 420
-Dishonest or fraudulent removal or concealment of property : Section 424
- Mischief : Section 425
Making a false document : Section 464
FalsiIication of accounts : Section 477A
Criminal intimidation : Sections 503 and 506
r/w
Acts done by several persons in furtherance of common intention : Section 34
Criminal conspiracy : 120B
Circular dated 01/07/2016 issued by the
In which justiIies
FIR against the erring builders.
Request to police authorities to refer the matter to Economic Offences Wing.
(B) The following offences under the Indian Contract Act being alleged by my clients to
have been committed against them by the abovenamed builder.
Fraud : Section 17
Misrepresentation : Section 18
Coercion : Section 15
Breach of contract : Chapter 6
(C) The following offences under the Maharashtra Ownership of Flats Act being alleged
to have been committed against them by the builders.
Not disclosing nature of title and not giving true copy of title Certificate and not giving true
cop of all documents of title relating to the land on which the Flats are constructed or are to
be constructed : Sections 3, 4 and 13 and Rules 3, 4 and 5 and model agreement in Form-V
Not disclosing encumbrances on land and not giving true copy of all documents relating to
encumbrances: Sections 3, 4 and 13 and Rules 3, 4 and 5
Not giving inspection of approved plans and Specification of building : Sections 3, 4 and
13 and Rules 3, 4 and 5 and model agreement in Form-V
Not disclosing nature of Textures, Fittings, amenities : Sections 3 and 13 and Rule 3 and
model agreement in Form-V
Not disclosing materials to be used in construction : Sections 3 and 13 and Rule 3
Not disclosing agreements entered by builder/promoter with architects and contractors
regarding design, materials and construction of building : Sections 3 and 13 and Rules 3
and 4
Not disclosing date by which possession of the Ilat is to be handed over : Sections 3, 4 and
13 and Rules 3, 4 and 5 and model agreement in Form-V
Not disclosing list of Flats with their numbers, the price charged/agreed to be charged
Sections 3, 4, 5 and 13 and Rules 3, 4, 5 and 10 and model agreement in Form-V
Not disclosing the nature of the organization of persons to be constituted and to which
title is to be passed : Sections 3, 4 and 13 and Rules 3, 4 and 5 and model agreement in
Form-V
Not disclosing all outgoings : Sections 3 and 13 and Rule 3 and 4
Not disclosing other prescribed information : Sections 3, 4, 5 and 13 and Rules 3, 4 and 5
Not disclosing true copies of documents as asked for : Sections 3 and 13 and Rules 3 and 4
and model agreement in Form-V
Not disclosing all the documents, plans and/or Special actions at the site and not
permitting inspection thereof : Sections 3, 4 and 13 and Rules 3 and 4 and model
agreement in Form-V
Not disclosing the carpet area of the Ilat : Sections 3, 4 and 13 and Rules 4 and 5 and model
agreement in Form-V
Not making agreement on the basis of carpet area of the Ilat : Sections 3, 4 and 13 and Rules
3, 4 and 5 and model agreement in Form-V
Not disclosing the price of the Ilat including the proportionate price of the common areas
and facilities : Sections 3, 4 and 13 and Rules 5 and 10 and model agreement in Form-V
Not disclosing the nature, extent and description of the common areas and facilities :
Sections 3, 4 and 13 and Rule 5 and model agreement in Form-V
Not entering into a registered written agreement for sale as per the prescribed format in
spite of taking the full booking amount : Sections 4 and 13 and Rule 5 and model
agreement in Form-V
Not specifying liability of the promoter to construct the building according to the plans
and Specifications approved by the local authority : Sections 4 and 13 and Rules 3, 4 and 5
Not specifying the percentage of undivided interest in the common areas and facilities
appertaining to the Ilat agreed to be sold : Sections 4 and 13 and Rule 5 and model
agreement in Form-V
Not disclosing statement of the use of which the Ilat is intended and restriction of its use :
Sections 4 and 13 and Rules 5 and 10 and model agreement in Form-V
Not maintaining a separate account in any bank of sums taken as advance or deposit :
Sections 5 and 13 and Rule 10 and Form-I, Form-II, Form-III and Form-IV
Not disbursing the moneys collected for the purpose for which they were given : Sections 5
and 13 and Rule 10 and Form-I, Form-II, Form-III and Form-IV
Not making full and true disclosure of all transactions in respect of the said account :
Sections 5 and 13 and Rule 10 and Form-I, Form-II, Form-III and Form-IV
Making alterations in the structures without consent of my clients : Sections 7 and 13
Creating third-party rights on the Ilat after execution of agreement : Sections 4, 5, 9 and 13
and Rule 5 and model agreement in Form-V
Not registering co-operative society / company : Sections 10 and 13 and Rule 8
Not Iixing his title for the land : Sections 11 and 13
Not executing conveyance : Sections 11 and 13 and Rule 9
Not passing on documents of title : Sections 11 and 13 and Rule 9
All persons being in charge of the company/companies becoming liable to be proceeded
against : Section 14
(D) Alleged Violations of RERA Act
Functions and duties of promoter. Sec.11
Obligations of promoter regarding veracity of the advertisement or prospectus. Sec.12
No deposit or advance to be taken by promoter without First entering into agreement for
sale. Sec.13
Adherence to sanctioned plans and project Specifications by the promoter. Sec.14
Obligations of promoter in case of transfer of a real estate project to a third party. Sec.15
Obligations of promoter regarding insurance of real estate project. Sec.16.
(E) Penalties under RERA Act
Punishment for non-registration under section 3. (sec. 59).
Penalty for contravention of section 4. (sec. 60).
Penalty for contravention of other provisions of this act. (sec. 61).
Penalty for non-registration and contravention under sections 9 and 10. (sec. 62.).
Penalty for failure to comply with orders od Authority by promoter. (sec. 63).
• OBLIGATION OF DEVELOPER:-
1. The Promoter has to register the project before he starts any form of advertising, marketing, booking, selling, offer for selling or inviting people to purchase plots, apartment or buildings.
2. It is mandatory for the Promoter to re register the project with the RERA and obtain a valid registration number before proceeding.
3.The Promoter must deposit 70% of the payment received from the consumers in an escrow account and ensure that the amount is solely used for the development of the project for which it was taken.
4.Every phase will be considered a standalone real estate project and the Promoter have to obtain registration under this Act for each phase separately. If the project is being done phase wise and in the 1st phase we are not providing common amenities like Club House etc., then promoter cannot put ads and make brochures showing common amenities.
5. At the time of registration, the Promoters shall provide the details of past 5 years projects done and even what was the possession date promised and when was possession given.
6.The Promoter shall provide the details of FSI proposed and approved.
7.The Promoter must adhere to the project plan at all times.
8.Estimated Iigures given can be changed. But there is lot of information which cannot be changed. Therefore, the Promoter shall be careful while putting information.
9.Both the developers and the landlord or any such party which is the beneficiary of a sale of a project & receives payments from consumers as real estate developers (Promoters) are liable to adhere to the Act. That's even true where the land owner is a CHS in case of ReDevelopment.
10. The Promoter must share quarterly progress report of the project, receipt of pending approvals and other such declarations which are related to project delivery on a regular basis.
11. Sale or allotment of Open Parking Areas by the Promoter is not permissible. However, the Covered Parking and Garage as deIined is permitted to be sold
12. Promoter shall execute a registered conveyance deed in favour of the allottee within three months from date of issue of occupancy certificate or Fifty one per cent of the total number of Purchasers, in such a building or a wing, has paid the full consideration to the promoter,whichever is earlier.
13. The File size limit is 1MB per File and only PDF Files can be uploaded on the application. The Promoter shall upload copy of the organization's PAN Card
14. If your project has no encumbrances, then you can upload a self-certiIication stating that your project has no encumbrances.
15. MOFA has not been repealed, however, in case of inconsistent provisions; the provisions of the Central Act (RERA) shall prevail.
