Maharashtra Real Estate Regulatory Authority
Introduction
Government of India has enacted the Real Estate (Regulation and Development) Act 2016 and all the sections of the Act shall come into force with effect from May 1, 2017. Under this Act, Government of Maharashtra established Maharashtra Real Estate Regulatory Authority (MahaRERA), vide Notification No. 23 dated 8 March 2017, for regulation and promotion of real estate sector in the State of Maharashtra.
The key components of Real Estate (Regulation and Development) Act, 2016 are as follows:
1. Real Estate Regulatory Authority and Appellate Tribunal
Under this Act, appropriate government shall establish Real Estate Regulatory Authority for regulation and promotion of the real estate sector in the State / UTs. The Authority shall strive to facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector while protecting the interest of allottees, promoters and real estate agents. The authority shall also establish an adjudicating mechanism for speedy dispute redressal regarding registered real estate projects. The key responsibilities of the Authority shall be as follows:
- Ensuring Disclosures of Real Estate Projects by Promoters
- Real Estate Projects Registration
- Real Estate Agents Registration
- Complaints Redressal
- Provide recommendations to appropriate Government on in matters relating to the development & promotion of real estate sector;
The appropriate Government shall also establish Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority. Any person aggrieved by any direction or decision or order made by the Authority or by an adjudicating officer may file an appeal before the Appellate Tribunal and the appeal shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal within a period of sixty days.
2. Real Estate Projects Registration
All commercial and residential real estate projects will have to register except in projects where
- area of land proposed to be developed does not exceed five hundred square meters
- number of apartments proposed to be developed does not exceed eight inclusive of all phases
- promoter has received completion certificate for a real estate project prior to commencement of this Act
- for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project
No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area within Maharashtra, without registering the real estate project with the Maharashtra Real Estate Regulatory Authority (MahaRERA). Promoter of ongoing real estate projects, in which all buildings as per sanctioned plan have not received Completion Certificate, shall also be required to be registered for such phase of the project which consists of buildings not having occupation or completion certificate.
If any promoter fails to register as per Act, he shall be liable to a penalty which may extend up to ten per cent of the estimated cost of the real estate project. On continued violation, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent of the estimated cost of the real estate project, or with both.
Apart from Registration, the promoters shall be required to provide quarterly updates on the status of the project to the authority.
3. Real Estate Agents Registration
All Real Estate Agents should register under this Act. No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, without obtaining registration under this section.
If any real estate agent fails to register, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated
4. Filing of complaints
Any aggrieved person may file a complaint with MahaRERA or the adjudicating officer, as the case may be, with respect to any registered real estate project, for any violation or contravention of the provisions of this Act or the rules and regulations made there under. The Authority shall establish an adjudicating mechanism for speedy redressal of such complaints.
Any person aggrieved by any direction or decision or order made by MahaRERA or by an adjudicating officer may file an appeal before the Appellate Tribunal
Any person aggrieved by any decision or order of the Appellate Tribunal, may file an appeal to the High Court
5. Financial Discipline
The Act strives to ensure greater financial discipline in the real estate sector. Some of its provisions are as follows:
- A promoter shall not accept more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale
- Seventy per cent of the amounts realized for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose
- Withdrawal from such accounts shall be in proportion to the percentage of completion of the project, which shall be certified by an engineer, an architect and a chartered accountant in practice.
- Promoter to compensate buyer for any false or incorrect statement with full refund of property cost with interest
- Project Accounts to be Audited / FY. Copy to be submitted to MahaRERA
- Provision for MahaRERA to freeze project bank account upon non-compliance
- Provision for stronger financial penalties for MahaRERA non-compliances
6. Transparency
The Act shall drive great transparency in the real estate sector as follows:
- Details of all the Registered Projects shall be available online for citizens including:
- sanctioned plans, layout plans, along with specifications, approved by the competent authority
- Proposed Plan, Proposed Layout Plan of the whole project and Floor Space Index proposed to be consumed in the whole project, as proposed by the promoter
- Proposed Number of building(s) or wing(s) to be constructed and sanctioned number of the building(s) or wing(s).
- the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.
- quarterly update of the list of number and types of apartments or plots, as the case may be, booked
- quarterly update of the list of number of covered parking, garages booked;
- quarterly update of the list of approvals taken and the approvals which are pending subsequent to commencement certificate;
- quarterly update of the status of the project; and
- such other information and documents as may be specified by the regulations made by MahaRERA.
- The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of MahaRERA, wherein all details of the registered project have been entered and include the registration number obtained from the Authority
7. Citizen Centricity
- Citizens shall be able to view, on MahaRERA website, all disclosures pertaining to registered projects. This shall enable data driven informed decision making.
- Promoter cannot make any additions and alterations in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities etc. without the previous consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in such building.
- If the promoter fails to complete or is unable to give possession of an apartment, plot or building, in accordance with the terms of the agreement for sale, he shall be liable to pay interest for every month of delay. Further, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him with interest
- Promoter to enable formation of Legal Entity like Cooperative Society, Company, Association, Federation etc. within three months from the date on which 51 per cent of the total number of Purchasers in such a building or a wing, have booked their apartment.
- Promoter shall execute a registered conveyance deed in favour of the allottee within three months from date of issue of occupancy certificate or 51 per cent of the total number of Purchasers in such a building or a wing, have paid the full consideration to the promoter, whichever is earlier.
Real Estate (Regulation and Development) Act 2016 is a step towards reforming the real estate sector in India, encouraging greater transparency, citizen centricity, accountability and financial discipline.
(1) Acts
(2) Rules, GRs & Circulars
(3) Regulations
(4) Orders and Circulations of MAHARERA
(5) MAHA Reat ( Maharashtra Real Estate Apeallate Tribunal)
(1) Acts
- The Real Estate (Regulation and Development) Act, 2016
- Notification of Government of India regarding commencement of Act dated 26th April 2016
- Government of India’s Real Estate Removal of Difficulties of Act Order dated 28th October 2016
- Government of Maharashtra Notification for establishment of Maharashtra Real Estate Regulatory Authority under section 20 of the Act dated 8th March 2017
- Notification of Government of India regarding commencement of Act dated 19-4-2017
(2) Rules, GRs & Circulars
- Constitution and Operations of Real Estate Regulatory Fund
- Revenue and Forest Department Government Circular No. – Issue – 1/2 / Pr. No. 1/2 (Policy)
- Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, Registration of real estate agents, rates of interests and disclosures on website) (Amendment) Rules, 2019
- Government Circular on Maharashtra Right to Public Service Act, 2015
- Government Circular on Registration of Co-operative Housing Society Dated March, 2016
- Government Resolution by Housing Department on Deemed Conveyance Dated September, 2017
- Maharashtra Real Estate (Regulation and Development)(Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017 vide Notification No. REA 2016/CR No.79/DVP-2 Dated 20th April, 2017
- Maharashtra Real Estate Regulatory Authority, Officers and Employees (Appointment and Service Conditions) Rules, 2017 vide Notification No. No. REA 2016/CR No. 79/DVP-2.Dated 17th April, 2017
- Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017 vide Notification No. REA.2016/CR No.79/DVP-2. Dated 20th April, 2017
- Maharashtra Real Estate Appellate Tribunal, Officers and Employees (Appointment and Service Conditions) Rules, 2017 vide Notification No. Dated April, 2017
- Maharashtra Real Estate Regulatory Authority (Form of Annual Statement of Accounts and Annual Report ) Rules, 2017 vide Notification No. REA2016/CR.No.123/DVP-2 Dated 18th April, 2017
(4) Orders & Circulations of MAHARERA
- MahaRERA Order dated 14th April 2021 as per Order of Government of Maharashtra dated 13th April 2021 regarding Break the Chain.
- Committee for Capacity Building and Certification of Real Estate Agents in Maharashtra
- Disclosure of sold/ booked inventory
- Standardized formats for Legal title report and consent of flat buyers.
- MahaRERA Order dated 30th January 2021 as per Order of Government of Maharashtra dated 29th January 2021 regarding Lockdown due to COVID-19.
- MahaRERA Order dated 30th December 2020 as per Order of Government of Maharashtra dated 29th December 2020 regarding Lockdown due to COVID-19.
- MahaRERA Order dated 30th November 2020 as per Order of Government of Maharashtra dated 27th November 2020 regarding Lockdown due to COVID-19.
- Order on delegation of powers under Section 40 of the Real Estate (Regulation and Development) Act,2016 to the Secretary, MahaRERA.
- MahaRERA Order dated 31st October 2020 as per Order of Government of Maharashtra dated 29th October 2020 regarding Lockdown due to COVID-19.
- MahaRERA Order dated 01st October 2020 as per Order of Government of India dated 30th September 2020 and Maharashtra Government dated 30th September 2020 regarding Lockdown due to COVID-19.
- MahaRERA Order dated 01st September 2020 as per Order of Government of India dated 29th August 2020 and Maharashtra Government dated 31st August 2020 regarding Lockdown due to COVID-19.
- MahaRERA Order dated 30th July 2020 as per Order of Government of India dated 29th July 2020 and Maharashtra Government dated 29th July 2020 regarding Lockdown due to COVID-19.
- MahaRERA Order dated 30th June 2020 as per Order of Government of India dated 29th June 2020 and Maharashtra Government dated 29th June 2020 regarding Lockdown due to COVID-19
- Standard Operating Procedure for online hearings through video conferencing
- MahaRERA Order dated 01st June 2020 as per Order of Government of India dated 30th May 2020 and Maharashtra Government dated 31st May 2020 regarding Lockdown due to COVID-19
- MahaRERA Order Invoking Force Majeure for Covid – 19 Pandemic
- Order on closure of MahaRERA office till 31st May 2020 as per directions of Government of India regarding extension of Lockdown
- Order on closure of MahaRERA office till 17th May 2020 as per directions of Government of India regarding extension of Lockdown
- Order on closure of MahaRERA office till 03rd May 2020 as per directions of Government of India regarding extension of Lockdown
- Order on revision of Project Registration Validity and Extended Timeline for Statutory Compliances, in view of Covid 19 Pandemic
- Order on closure of MahaRERA office till 15th April 2020 as per directions of Government of India
- Order on closure of MahaRERA office from 23/3/2020 to 31/3/2020
- Rescheduling of hearing due to Coronavirus epidemic.
- Additional mandatory document along with application for registration of projects.
- Order on Conversion of Applications filed before MahaRERA Conciliation and Dispute Resolution forum to Suo-Motu Complaints by MahaRERA
- Order on Further directions with regards to filing of complaints with MahaRERA
- Clarification regarding Registration of Agreement for Sale / Sale Deed for Real Estate Projects
- Order on Self-Regulatory Organization (SRO) for Promoters
- Release of additional charge as Adjudicating Officer of the Member-2/MahaRERA
- Procedure for transferring or assigning promoters rights and liabilities to a third party updated
- Order on Revocation of Registration of Project
- Approval of Association of Allottees for order under Section 7 subsection 3 of the Act
- Circular on Disclosure of Information Regarding Project Professionals
- Circular on SOP for Handling Complaints on Non Registered Projects
- Procedure for referring complaints to MahaRERA Conciliation and Dispute Resolution Forum by MahaRERA or Adjudicating Officer of MahaRERA
- Circular on SOP for Handling Information on Non Registered Projects
- Quality Assurance Certificate Form 2A
- Circular on Display of sanctioned plan layout plan at Project Site
- Circular on Payment for Source Information
- Revised Standard Operating Procedure (SOP) for handling complaints
- Circular for Delegation of powers of the authority under section – 39 of Real Estate (Regulation & Development) Act 2016.
- MahaRERA Divisional Office Address of Pune & Nagpur
- Appointment of Adjudicating Officer on the Panel of MahaRERA
- Statement of Projects Where Penalty is Paid for Delayed Registration
- Circular regarding Formation of MahaRERA Conciliation and Dispute Resolution Forum
- Office Circular: MahaRERA Office Working Hours
- Amendment to the Circular on Standard Operating Procedure for Updating Registered Projects and Revising/Correcting information with respect to Registered Project and Agents
- Co- Promoter is known as Promoter (Land owner/ Investor)
- Land Owners/Investors having Area/Revenue Share in Real Estate Project to be treated as Promoter (landowner/investor)
- Procedure for Transferring or Assigning Promoter’s Rights and Liabilities to a Third Party
- Order Passed in the MahaRERA Authority Meeting held on 8th September 2017 in Regards to Online Applications Received after 16th August 2017 for Registration for Ongoing Projects
- Order Passed in the MahaRERA Authority Meeting held on 10th August 2017 in Regards to Online Applications Received after 2nd August 2017 for Registration for Ongoing Projects
- Order Passed in the MahaRERA Authority Meeting held on 2nd August 2017 in Regards to Online Applications Received on 1st and 2nd August 2017 for Registration for Ongoing Projects
- Standard Operating Procedure for Handling Complaints
- SOP for Updating Registered Projects and Revising /Correcting Information with respect to Registered Projects and Registered Real Estate Agents
- Clarification on CA Certificates
- Clarification regarding Project Registration Process
- Fees for updating of website, database management and maintenance of the website
- Definition of Co-promoter: Individual/other than individuals, having share in revenue/Share in total area developed in the Real Estate Project
- Office order making Local address mandatory for Promoter/Agent for Registration
- Clarification regarding “License Number” of Engineers
- Recognition of heads of Finance Department of government controlled development authorities, autonomous bodies etc.
- Self Declaration to be submitted by the Promoters to the Bank
- Clarification on Calculation of Carpet Area
- Designation of Adjudicating Officer
- Clarification regarding the period within which promoter has to transfer the title by executing conveyance
- Clarifications on Operating Designated Bank Account
(5) MahaReat
- MahaREAT Calendar for the year 2021
- Maharashtra Real Estate Appellate Tribunal [General] (First Amendment) Regulations, 2019
- MahaREAT Calendar for the year 2020
- Maharashtra Real Estate Appellate Tribunal, Officers and Employees (Appointment and Service Conditions) Rules, 2017 vide Notification No. Dated April, 2017
- Maharashtra Real Estate Appellate Tribunal Regulations 2019
- Appellate Tribunal Rules