In some other places developers are coming forward to pay these compensation amounts or settle the issue of compensation by compromising with the concerned consumers to avoid forfeiture of their income. In this manner, Rs 4.71 Crore have been recovered out of the amount ordered by MahaRERA for compensation to 8 out of 11 consumers in Nagpur.

Nagpur City Tehsildar Office has begun the process of sealing the bank account of Hagwood Commercial Developers Pvt. Ltd. for recovery of the amount. As a result, this amount has been recovered. MahaRERA has so far issued 1,053 warrants for recovery of damages amounting to Rs 627.70 crore.

Out of these, MahaRERA has so far been able to recover an amount of Rs 133.56 crore against 190 warrants. MahaRERA is continuously trying to recover the remaining amount. In this, 18 consumers from 6 projects in Nagpur area were expected to get compensation of Rs. 10.03 crores. Out of which compensation of Rs. 4.71 crores has been recovered, making it easier for the affected customers to get compensation.

MahaRERA is trying its best to ensure effective implementation of orders passed by MahaRERA regarding payment of interest/damages/refunds by holding hearings from time to time. Also MahaRERA is committed to further strengthen and empower this particular regulatory mechanism.

Also Read: Indian real estate poised for growth with potential access to untappeddomestic institutional capital

The post Rs 4.71 Cr Recovered from a developer as compensation appeared first on Square Feat India.

This comes after a September 2023 announcement suspending registration of 388 real estate projects in Maharashtra. This was owing to non-compliance and violations of the RERA Act, 2016, by the developers.

MahaRERA said that this decision comes because 291 of the 388 realtors have still not complied with the RERA provisions, despite the suspension notices. Owing to this, the action will be taken post November 10.

On the announcement of suspension, a few developers had taken the initiative to comply, bringing the list of suspensions to 363.

“Of this so far, 72 projects have complied and paid a penalty of Rs 50,000 each. The scrutiny of these compliance is under process. However, there are 291 projects yet to respond. If there is no response, by November 10, we may go ahead with revoking registrations of these projects thereafter,” said MahaRERA in a statement on October 09.

Last month MahaRERA had issued a notice of suspension of registration of 388 projects – and restricted their further sales, marketing or advertising for failing to comply with regulations on uploading details online. Sub-registrars were also directed not to register sale agreements and sale deeds of flats in the suspended projects. All these projects were registered in January 2023. The regulator’s decision was taken to enforce compliance with regulatory provisions on making details of the projects available on its website.

The MahaRERA had issued notices to non-complying projects registered in January 2023. According to MahaRERA, 746 projects were registered in January.

The developers had time until April 20, 2023 to upload details of their projects such as the number of flats, the funds received and the funds utilised, on the regulator’s website. However, many developers did not do this. Hence, notices were issued to all of them followed by suspension of registration and levy of Rs 50,000 penalty.

Also Read: MahaRERA suspends registration of 388 developers for not providing quarterly updates

The post 291 Real Estate Projects May lose MahaRERA registration on Nov 10 appeared first on Square Feat India.

Compliance with this provision will remain an important criterion in the proposed grading of projects.

All developers should set up a “Grievance Redressal Cell” for their respective projects to resolve the grievances of home buyers. MahaRERA has appealed to all the developers through a circular. There should be at least one Grievance Redressal Officer dedicated to this cell and his name, contact number should be prominently displayed at the project site. Moreover, MahaRERA has also suggested that it should be prominently available on the website of the developer.

Initially, the marketing system of the project is in contact with the customer while buying or registering a house. Many projects do not specify who to contact later if there are any complaints or problems. In that case, the customer does not know where to go. As a result he has to face difficulties in resolving his complaint.

This often leads to misunderstandings and complaints due to lack of officially reliable information. It can also cause problems in project completion.

For this, it has been pointed out by MahaRERA that if all the developers set up a dedicated grievance redressal cell for their respective projects, this issue can be kept under control as the complainant will get official and reliable information on time. Moreover, MahaRERA has also received such feedback from experts in this field from time to time.

Therefore, MahaRERA through a special circular has urged all developers to set up a dedicated customer grievance redressal cell. The details of how many complaints have been received and how many complaints have been resolved by these developers should also be posted on the website. This will help increase the credibility of the project.

MahaRERA has already announced the grading of projects registered with MahaRERA from January 23 on the basis of certain criteria. MahaRERA has announced that the establishment of a project-wise dedicated grievance redressal cell will also be an important criterion.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd. Said, “Every industry, including banking, insurance, and consumer durables, has a grievance redressal mechanism to address post-sale issues and problems faced by customers. It is crucial for real estate developers to adopt such a mechanism in order to enhance the trust of home buyers and provide them with a sense of security. We appreciate the initiative taken by MahaRERA to establish a system for grading real estate developers based on the presence of a grievance redressal wing. In fact, it should be considered by RERA authorities of all states.”

Also Read: MahaRERA fine Builders for printing ads without MahaRERA number

The post Developers to redress complaints of home buyers have to set up Grievance Redressal Cell: MahaRERA appeared first on Square Feat India.

On April 20, the properties of Bhupesh Babu of NK Garden were successfully auctioned in Morbi Gram Panchayat of Panvel area. The proceeds from this auction were recently distributed among the 34 complainants in the case.Rs 31.57 lakh is the highest compensation amount and Rs 3.48 lakh is the lowest amount. Apart from this, 30 out of 34 complainants have been awarded a total of Rs 6 lakh cost towards complaint.

While the base price was Rs 3.72 crore, the auction fetched a bid of Rs 4.82 crore. As a result of which the principal amount of compensation was paid to 34 complainants in this case. This is the first instance of recovery of money from the auction and compensation to the complainants.

There is a possibility that property seizure and alternative auctions will be announced in some more places in the state in the coming time.

MahaRERA has issued warrants worth Rs 22.2 crore in 99 cases for delay and similar matters in 38 projects in Raigad district. Rs 6.50 crore was expected to be recovered from 33 warrants from Bhupeshbabu, the developer of NK Garden in Panvel Tehsil Office area. For this, the Panvel Tehsil Office had seized the properties of survey numbers 93/2/9, 93/3, 93/5, 93/6, 93/9, 93/11 at Morbe and held this auction.

As per the legal provision regarding distribution of the amount recovered in this auction, this amount was distributed through the local revenue system to the homebuyers in this project as per the compensation sanctioned by MahaRERA.

Also Read: 88 Realty Projects approach MahaRERA to cancel their Registration

The post Rs 4.78 crore compensation distributed to 34 Homebuyers appeared first on Square Feat India.

MahaRERA has introduced QR Code for each MahaRERA Project to assist Homebuyer to get Project related information easily.

Now the promoter shall prominently display Quick Response (“QR”) code on each and every Project promotion / advertisement published after August 1, 2023.

• The QR code must be published in a manner that is legible, readable, and detectable with software application.

• The QR code must be published besides the MahaRERA Registration Number and the Website Address.

• The mandate as mentioned in Clause (a) above shall apply to the following mediums of promotion / advertisement and in any other medium as may be directed by the Authority.

o Advertisements on Newspaper / Magazines / Journals etc.
o Printed Flyers / Brochures / Catalogues / Leaflets / Prospectus o Standees on Project Sites / Sales Office
o Websites/webpagesofProjects
o Social Media Advertisements
o Any other Advertisements where QR codes can be published.

This will enable homebuyers to get all details of the project.

This will bring in further transparency in the real estate industry and enable a homebuyer to take an informed decision in regards to real estate purchase.

Also Read: MahaRERA gets ₹8.57 Cr from 11 Developers, will give it to homebuyers

The post From Aug 1, Scan QR code to get Building Details appeared first on Square Feat India.

MahaRERA earlier this year announced that an examination shall be mandatory for all real estate agents who wish to practise the profession in the real estate industry.

Only when they pass the test prescribed by MahaRERA will they be allowed to get a registration number, which is mandatory to carry out the real estate business.

The test will be conducted at 10 different centres across the state of Maharashtra. These centres are at Mumbai, Thane, Pune, Navi Mumbai, Nagpur, Nashik and other areas.

While for every new registration of a real estate agent this particular test is mandatory, for the 39,000 registered agents it is mandatory that they pass the test by September 1.

Several developer bodies and other association organised training sessions for real estate agents.

This move was by MahaRERA, so as to empower real estate agents, the reason being that the estate agents who are to sell homes should be aware about the act as well as know what they are selling to the homebuyers.

Also Read: New policy soon for stalled redevelopment projects in Mumbai: Maha CM

The post In a first 457 Real Estate Agents to Appear for MahaRERA exam on May 20 appeared first on Square Feat India.

Under Section 4(2)(I)(d) of the Real Estate Act 2016, it is mandatory to have a single bank account for the project of one registration number for the proper completion of the housing projects registered. Meanwhile, the irregularity of 1781 projects linking their bank accounts to more than one project has come to light in the MahaRERA probe.

MahaRERA has taken cognizance of these irregularities and has so far issued show cause notices to 45 such projects. Show cause notices are also being sent to remaining projects.

In order to prevent this from happening in the future, changes have been made in the computer system so that if an attempt is made to link the designated account of one project with the bank account of another project, it will be blocked and cannot be done. Apart from this, now if the developer tries to change the mutual account, that will not happen. Now the MahaRERA issued a new order making the prior approval of the MahaRERA essential for this change.

A built-in discipline should be created in the real estate sector. MahaRERA is meant to bring financial discipline and transparency in the real estate sector so that the investment of every home buyer and similar investors in the sector is safe, the credibility of the real estate sector increases. That is why Maharera has started this micro-control claims the authority.

As per the Real Estate Act, the developer is required to maintain only one bank account with one RERA registration number.
The money received from registration in the respective project should be kept in this account only and used for the work of that project only. Elsewhere it should not be diverted. Because if this happens it can have an adverse effect on the project.

Not only this, the developer is also required to keep 70 percent of the money received from the registration of that project in this account. While working on this project, for withdrawing money from this account at each stage, unless the Project Engineer, Project Architect and Project Auditor have a certificate about how much the project has been completed, how much is left, how much money is needed. No withdrawals can be made from this account unless so certified.

Small and large housing projects are going on in the state. MahaRERA has taken steps for micro control of these projects. Financial transactions related to the projects are closely controlled by MahaRERA. MahaRERA has highlighted this irregularity by studying the information submitted by the developers themselves to MahaRERA.

Maharera has taken cognizance of this irregularity and by issuing show cause notices to all, they have been directed to submit all the details of the total number of flats in each project, the number of flats sold, the money received, the money withdrawn from the bank along with the evidence. Against this backdrop, after understanding the statement, further appropriate action will be taken.

Last week, MahaRERA red-flagged 313 projects and began a more thorough inspection of them. Show cause notices have already been issued to all these 313 projects. They are under scrutiny.

Also Read: 313 major projects on MahaRERA’s radar for anomalies

The post MahaRERA finds 1781 cases, where one bank account is connected with several projects appeared first on Square Feat India.

It has come to MahaRERA ‘s notice that some advertisements of projects are being published in newspapers without registration number of MahaRERA. MahaRERA has taken serious notice of these irregularities and action is being taken against them by sending notices to these projects.

MahaRERA has appealed, basically it is illegal to publish advertisements without MahaRERA registration number and since it is dangerous for home buyers to invest in projects without MahaRERA registration number, homebuyers should refrain from investing in such projects.

No developer can advertise a project, or sell houses in a project without registering and obtaining the registration number from the authority. However, some developers are flouting this rule and advertising without MahaRERA registration number or simply mention ‘Maharera Registered’.

According to the RERA Act, any project (including flats) of more than 500 square meters or 8 flats is required to be registered with MahaRERA. Home buyers should take note of this to secure their investment.

In order to ensure that the home buyers and the investment in the real estate sector as a whole are safe, the government has implemented the Real Estate Act and established the MahaRERA for proper regulation of this sector. MahaRERA takes care of many fundamentals on behalf of home buyers and other investors in the sector.

Thus it should be noted by Homebuyers that by visiting the MahaRERA website they should first check, that whether the project is registered with MahaRERA. Whether the completion date mentioned by the builder is same to the date mentioned in the MahaRERA website. Also whether the agreement being executed by the developer with the homebuyer is in accordance to the one, prescribed by the model agreement by MahaRERA. Homebuyer should also be particular about the fact that once the developer has been paid 10 per cent of the home price, the registration and execution of the agreement of sale be carried out.

Even when dealing with a real estate agent, homebuyers should check on MahaRERA website, whether the builder has mentioned the name of the agent in the list that it provides to MahaRERA.

If the project is registered with MahaRERA, developers have to fulfill several conditions under the RERA Act for the benefit of the customer.

An account should be opened in the bank according to the RERA registration number so that the amount received from the developer for house purchase and house registration is spent on the same project without being spent elsewhere. 70 percent of the money received from the investors for that project has to be kept in this account for the work of this project. The developer can never withdraw this money. Developer can withdraw the amount only after getting the percentage and quality of work certificate from the project engineer, architect and chartered accountant. Moreover, the developer is required to update the project status on MahaRERA’s website every three months. Home buyers can see what work is going on in the project, how the work is going on, how far the work has come on the website of MahaRERA.

Apart from this, the important thing is that from January 1, made it mandatory to record the DIN Number (DIN) of all directors along with the developer along with other project details while registering the new project. Home buyers can invest safely by studying all this information, testing the capabilities of the developer.

In all these processes, the home purchase agreement with the developer is a very important document. In this regard, MahaRERA has also announced an ideal buyer contract. Among them, divine calamity, carpet area defect liability period and project transfer agreement are required as per MahaRERA Act and no change can be made by the developer. Apart from this, the developer can make any changes to the model purchase agreement with the consent of the buyer. But it is mandatory to underline the change so that the buyer can understand it clearly.

Also Read: 313 major projects on MahaRERA’s radar for anomalies

The post Suo motu action on Developers advertising projects without MahaRERA registration appeared first on Square Feat India.

All these developers have been given 30 days from the date of notice to rectify the errors. Even then, those who do not respond, and rectify errors, those promoters will be liable for penal action by MahaRERA. They will have to pay 30 per cent penalty from their account.

Because after registering any housing project in MahaRERA, as per Section 11 of RERA Act, the project developer is required to update the information given at the time of registration on the website of MahaRERA every 3 months. It is essential for the homebuyer to know the project status from time to time. However, it was observed that most of the projects had not recorded this information since registration.

According to the RERA Act, the developer is required to keep 70 percent of the money received from the customers by opening a separate account as per the RERA registration number. At the time of withdrawing this money at each stage of construction from the bank, it is required to submit the certificate of project engineer, architect and chartered accountant on percentage of project completion, quality, cost of construction respectively. Quarterly inventory of how many flats and plots sold in the project is also mandatory to be updated on the website.

Most importantly, it is mandatory to audit the project account every six months and six months after the end of each year, it is mandatory to submit a Statutory Audit certifying that the amount withdrawn from this account has been withdrawn in proportion to the project completion and spent on the project itself.

All these promoters have to submit information for the period of five years from 2017-18 to 2021-22. As a one-time special concession, this information of 5 years has to been given in one form, together. However, for the year 2022-23, this information is to be updated on the Authroity’s website only on a quarterly basis.

Also Read: MahaRERA warrants to be executed in 27 cases on Friday

The post MahaRERA sends show cause notices to 19,539 Realty Projects appeared first on Square Feat India.

The October 2019 order had asked the web portals to register with the authority as real estate agents, the web portals challenged the order stating that they were not facilitating any sale, but merely were providing information via advertisements to the public.

The portals also claimed that they asked people visiting their websites that before making a decision, they should check details of a project from other authorities which even included MahaRERA.

In July 2018, the Mumbai Grahak Panchayat had filed a complaint with MahaRERA stating that the web portals be registered as real estate agents with MahaRERA.

A detailed hearing was conducted and the MahaRERA closed the matter for order/s after conclusion of arguments of all
the parties on February 8, 2019. The web portals in their appeal. pointed out that the common order was announced only on October 3, 2019, after an unexplained inordinate delay of more than six months of time interval from the date of closure of proceedings.

This is the legal point that the Appellate Tribunal held and passed a detailed order on January 6, 2023. In its order the tribunal held that, as per the view held by the Higher Courts, delayed delivery of judgment is held to be denial of justice making the order delivered after a period of 6 months, unsustainable even without examining the merits and demerits of the order.

The order passed by the Appellate Tribunal read, “In this case, the fact that the order in the instant Appeals is passed after more than 6 months of closing the arguments of the parties and reserving the same for order. We, therefore find substance in the preliminary objection raised by the Appellants herein and cannot accept the contentions of the MGP in view of the categorical view held on the issue by the Hon’ble Bombay High Court (supra). In that view of the matter, in our considered view, the impugned order cannot be sustained.”

After which the tribunal remanded the matter back to MahaRERA to hear and decide afresh by giving sufficient opportunity to the concerned parties.

Also Read: MahaRERA tells developers to inform all Company details where they are associated

The post MahaRERA to hear Real Estate Web Portals Matter afresh appeared first on Square Feat India.