Key Revisions

1. Increased Interest Rates:
   • The interest rate for new installment proposals has been raised from 8.5% to 12% per annum.
   • For defaulted payments, the interest rate will be 15% per annum for the first six months from the due date, and 18% for the following six months.
2. Default Payment Installments:
   • Defaulted amounts can now be paid in four installments within one year, which will include both regular and penal interest.
   • If the first installment is not paid within three months, a stop-work order will be issued immediately.
3. Payment Conditions:
   • Project proponents must submit a registered undertaking committing to the revised payment schedule.
   • Stop-work orders will only be lifted after the first installment has been paid.
4. Applicability:
   • The revised interest rates will apply only to new installment proposals not yet approved by the Deputy Chief Engineer (Building Proposals) at the time of the circular’s issuance.
   • Proposals approved under the previous installment scheme will remain unaffected.

This policy revision aims to improve the recovery process for building permission fees, ensuring timely payments while maintaining fairness and financial accountability. The circular will be issued for immediate implementation following approval from the Additional Municipal Commissioner (Projects) and the Municipal Commissioner.

Background

The installment payment facility was initially introduced to assist project proponents by providing a deferred payment option for building permission fees. The increase in interest rates comes in response to financial considerations and delays in payments by some proponents. The updated policy demonstrates the BMC’s commitment to enhancing governance and maintaining financial discipline while offering a structured payment mechanism for developers.

Also Read: BMC to take over empty residential buildings for quarantine

The post BMC Revises Interest Rates for Installment Payments on Building Permission Fees appeared first on Square Feat India.

By Varun Singh

Dear flat buyers, before you make an investment in the real estate sector, please read this article carefully.

There is an important update from Maharashtra Real Estate Regulatory Authority (MahaRERA) for flat buyers.

This update will have to be followed by developers and will let the flat buyers know the intricate and important details of the project, in which they wish to invest.

On Monday, MahaRERA came out with circular asking developers to declare an important aspect related to their project.

The circular quotes section 4(2)(c) & (d) of RERA Act and Rules & Regulations. It states that this section provides for enclosing a valid and authenticated copy of approvals and commencement certificate, sanctioned Plan and layout, etc. approved from the competent authority.

The circular signed by Dr. Vasant Prabhu, Secretary, MahaRERA states, “It is observed that Layout Approvals although obtained for the entire project. many a time other approvals are obtained in stages including the Commencement Certificate up to a Plinth /Zero FSI / or commencement certificate up to a particular floor level.

The flat buyers are unaware of these stage-wise approvals, therefore, MahaRERA decided to prescribe a declaration by the Promoter (developer) to certify the exact stage of the Commencement certificate, so that buyers will be aware of the same.

This Declaration format will be called “Format -D” of the circular and the Promoter will be required to upload it while registering the project, alongside the Commencement Certificate (CC).

The promoter will be required to update it as soon as further Commencement Certificate / Approvals are obtained by him, at every later stage.

Experts have hailed this move of MahaRERA as homebuyer friendly and also as a move towards transparency.

Adv Sunil Kewalramani says, “This will bring further clarity and transparency for homebuyers. Now the buyers can check the details about the available CC and other approvals online before they buy the property.”

This means if a builder is promising something to the home buyer, the buyer can check whether the builder has approvals for constructing and fulfilling those promises or not.

Also Read: Tenancy Act: Read This Before You Rent A Home

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