In an attempt to ensure homebuyers get better quality homes, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has floated a Draft Regulation for Project’s Quality Assurance. Through the self-certification declaration of the same, the developer will have to provide detailed information on the project’s technical aspects.

The draft has been published on MahaRERA website seeking suggestions and views. The window to share the opinions to suggestions.maharera@gmail.com is open upto May 23.

In December, MahaRERA had released a consultation paper on the measures for better quality homes and pre-empt homebuyer complaints related to defects in construction or sub-standard construction quality. Based on the information received, a fresh document has been drafted .

It is proposed that during the initial phases, abiding by the new regulations will be optional. Names of those developers voluntarily adopting the system will be put up on MahaRERA website and will assist in adding credence to their reputation towards potential homebuyers. Once the transition phase is over, it will become mandatory for all the developers to follow suit.

The Real Estate (Regulation and Development) Act, 2016 has a provision on defect liability. The law safeguards flat purchaser’s rights by making a developer accountable to rectify any structural defects, at their own expense, which are brought to the notice within the initial five years. These have to be rectified within 30 days.

While the law provides remedial measures for defect rectification, it is essential to safeguard homebuyers’ interests. Therefore, the need to have processes and standards to minimise the occurrence of defects.

The need for such a regulation arose owing to repeated discussion and concerns over construction quality delivered by the real estate sector. This will alleviate concerns about the quality of construction in the real estate sector, MahaRERA emphasises the importance of structural design and stability. Already, multiple real estate stakeholders have been consulted to put together the draft. Prior to formalising the same, suggestions and opinions have been sought.

There are several essential questions that need to be addressed on-site. Some of those include, in terms of structural design and stability, is soil testing done before the design process? Are structural engineers appointed for the project? Are all the works getting periodically certified for quality control, and is a record of this maintained on-site? Is there an on-site testing facility to inspect raw material quality? Is there regular inspection of the construction site to ensure the quality of materials like cement, concrete, steel, electrical wires, plumbing fittings, etc.? In case of a multi-storied building, is there an anti-seismic system? Is there a flood prevention system in place? Is water quality testing done for construction purposes?

For the execution of all the civil works, it is important to have engineers and contractors overseeing important aspects such as electricity, water supply and sanitation. Any negligence or laxity should not be tolerated, and meticulous attention should be paid to avoid errors and discrepancies as basic as dampness in the wall and leakages.

Furthermore, after completion of the project, details regarding fire safety, earthquake-resistant measures, and other similar matters need to be documented and certified by the project supervisor and engineers. The promoter of the project will also have to re-validate these prior to submitting the “Self-Declaration on Quality Assurance” to MahaRERA.

Also Read: MahaRERA says only trained and certified agents to operate in the real estate sector

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Mehta said, “In Maharashtra, 1.6 crore citizens are waiting for homes and about 14 lakh homes are under construction. Hence, the Government recognises the importance of the real estate sector and good housing. While the foundation of regulation will remain the same, more emphasis will be laid on the issue of timely construction, delivery and quality of housing, as well, in order to make good housing available to all. MahaRERA will soon bring an Act to monitor the quality of construction and housing. This enactment will resolve disputes arising from quality issues. More than an impediment, it will ensure seamless delivery of housing.” He added, “If we are giving the RERA number, the house must be delivered on the day and with the quality promised. The enactment is currently at a discussion stage.”

The Real Estate Forum, 2023 organised by NAREDCO Maharashtra was inaugurated today at the hands of Atul Save, Minister of Housing, Government of Maharashtra in the presence of Ajoy Mehta, Chairman, MahaRERA; Dr Sanjay Mukherjee, Metropolitan Commissioner, MMRDA; Valsa Nair Singh, Additional Chief Secretary, Ministry of Housing, Government of Maharashtra and Pravin Darade, Secretary, Ministry of Environment, Government of Maharashtra. Also present were Sandeep Runwal, President, NAREDCO, Maharashtra, Dr Niranjan Hiranandani, Vice Chairman, NAREDCO and Rajan Rajan Bandelkar, President, NAREDCO National. 

Appreciating NAREDCO Maharashtra’s efforts to organise the Real Estate Forum, Atul Save, Minister of Housing, Government of Maharashtra said, “The Government understands the importance and contribution of the real estate sector in the State’s development. The Government aims to ensure good housing to every person in the State and in order to achieve this; it will sort out any issues of the real estate sector.”   

Welcoming the real estate sector fraternity to the mega Real Estate Forum, 2023, Sandeep Runwal, President, NAREDCO Maharashtra said, “When the real estate sectors in countries like China, USA are struggling, India’s real estate sector is a global bright spot. In Maharashtra, infrastructure projects are driving growth of the State while the RERA is evolving well to bring transparency and quality in functioning of development. In these interesting times, we foresee seamless growth of the State’s real estate sector with conducive policies from the Government and issues getting addressed in real time.” Mr Runwal further announced the launch of an ambitious  RealTech Fund (RTF) with an initial corpus of Rs 50 crore to propel technology innovations in the real estate sector and inculcate entrepreneurship. 

Dr Niranjan Hiranandani, Vice Chairman, NAREDCO National lauded India’s prominence globally as an emerging economy and the real estate sector’s contribution in the growth story. Calling Maharashtra’s strides in ensuring ease-of-doing-business, transparency through RERA implementation and infrastructure development phenomenal, Dr Hiranandani said, “Housing and infrastructure development in the state has grown significantly. With more urban infrastructure projects underway, the State and the city of Mumbai needs housing for all. The State’s real estate sector’s aspiration is to give a home to every person. We need a further slew of pro – housing initiatives like reducing stamp duty and registration charges to boost housing demand.”  

Rajan Bandelkar, President, NAREDCO National said, “The earlier decade was for Information and technology, telecommunications, but now it is of the real estate sector; mainly due to the Central and State Government’s focus on housing for all and making commensurate policies.” 

During the event, NAREDCO Maharashtra unveiled two new State Chapters of Karad (in Satara District) and Akola. NAREDCO Maharashtra also announced another flagship event Homethon, 2023 to be scheduledon 24, 25 & 26th November, 2023. The event also saw the launch of a NAREDCO – JLL Research Report titled: Unlocking Opportunities with Infrastructure Development. According to the report, residential sales value in Mumbai is projected to exceed INR 2 lakh crore by 2030.

The report further states that mid-segment projects still account for most of the market activity in Mumbai. However, with changing customer preferences, there is an increased focus on upper mid and premium segments. Mumbai has been the fastest-moving city in terms of its home purchase affordability index score and became an affordable market with its threshold hitting 100 in 2021.

Also Read: NAREDCO Maharashtra to launch nation’s first RealTech Fund to support start-ups and innovations ecosystem in real estate sector

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OF the 308 projects, 233 projects are in the Mumbai Metropolitan Region (MMR), this data is according to a list compiled by the Maharashtra Real Estate Regulatory Authority (MahaRERA).

MahaRERA, has started taking steps for micro control of all the projects, and as part of the same, it sourced the list of such projects under insolvency from the website of NCLT.

As per the information on the NCLT website collated by MahaRERA, various banks, financial institutions, and other credit providers have initiated insolvency proceedings against 308 real estate projects in Maharashtra.

MahaRERA, has published this information with names of the projects on their website, this is to ensure transparency and alert homebuyers to avoid being cheated.

“Hence, we are appealing to the citizens that they should go through this list before making a decision about home purchase,” read a statement issued by MahaRERA.

By clicking here you can have a look at this list, and save your investments.

Where are the projects?

According to MahaRERA, out of the total 308 projects under insolvency, 115 are ongoing, while registrations for 193 projects have lapsed.

Of the total 308 projects, 233 are in MMR, 63 in Pune, while Ahmednagar has five such projects, followed by four projects in Solapur, and one each in Ratnagiri, Chhatrapati Sambhaji Nagar, and Nagpur.

According to MahaRERA, out of the 115 ongoing projects, 32 have more than 50 percent booking, while 150 of the lapsed projects (out of the total of 193) have more than 50 percent booking.

Also Read: 16,000 builders sent show-cause notice by MahaRERA

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A homebuyer needs to have reliable information about the housing project in which he has invested from time to time. Therefore, as per RERA Act, every promoter has to submit his project information in various forms to MahaRERA and is obliged to update its project information on the MahaRERA website at certain intervals.

To update this information, MahaRERA had issued show cause notices to around 19,500 projects in January. MahaRERA has now issued a second show cause notice to around 16,000 promoters who did not respond to these notices or gave unsatisfactory responses.

These notices have been sent to the email given to MahaRERA at the time of project registration. These promoters are required to update the required clarifications and this information in various forms on the website of MahaRERA within 15 days of receiving the notice. MahaRERA has clarified in the notice that this will be the last chance for promoters who do not respond to this notice.

In this second notice, MahaRERA has also clarified that it will take serious note of the apathy towards the customers by promoters who do not respond even after this notice and will take further action as per RERA act. Moreover, MahaRERA has also highlighted in this notice that the risk, cost and consequences of this action will be the responsibility of the concerned promoter.

As part of enabling the Close Monitoring System of MahaRERA, MahaRERA has started reviewing the projects registered since its inception in May 2017 till March 2022. As a result, MahaRERA had issued show cause notices in January to 19,500 projects that did not update the mandatory project information as per section 11 of the RERA Act.

All these developers were given 30 days to rectify the mistake. It was to update the information in Forms 1, 2, 3 and 5. About 3500 promoters have responded After scrutiny, it was observed that 16,000 promoters have not given the expected response or the response given is not satisfactory. Therefore, another notice has been sent to them.

Because after registration of any housing project as per Section 11 of RERA Act certain information provided by the project promoter at the time of registration has to be updated every 3 months and financial details in Form 5 once in a year. From this, the project progress, cost and similar information will be available to the homebuyer.

It is essential for the homebuyer to know the project status from time to time. However, it was pointed out that most of the projects had not updated this information since registration.

Also Read: MahaRERA sends show cause notices to 19,539 Realty Projects

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Not only this, but as a result of these notices, 705 projects have applied to MahaRERA for renewal in the same month. This is the first time in the history of MahaRERA that so many projects have been completed in a single month and also for such a large number of applications for renewal.

Basically, by avoiding to update this information from time to time, the developers are raising questions on their own credibility for no reason. But the information that has come out this month will not only benefit the home buyers, but also increase the credibility of the real estate sector and help to improve the image of the sector as well as the related developer. Therefore, MahaRERA is appealing that all concerned should give similar response and update their information within the prescribed period.

More details about this: about 125-150 projects are completed by every month, this according to the MahaRERA website. Accordingly, in August 139, September 169, October 134, November 116, December 138 and in the month of January, this number has increased by several fold to 700.

The number of applications received for renewal of projects is also encouraging. Because this will give great relief to the investors who have invested in these projects.

The number averaged 120 per month. (Last 5 months were July 29, August 138, September 116, October 142, November 178. In December, January this number increased to 705 and this monthly average has tripled.

As part of enabling the Monitoring System of MahaRERA, MahaRERA has started reviewing the projects registered since its establishment in May 2017 till March 2022. As a result, MahaRERA has sent show cause notices to 19 thousand 539 projects which have not updated the mandatory project information as per Section 11 of the RERA Act.

All these developers have been given 30 days from the date of notice to rectify the errors. Even after this, those who do not respond, or carry out rectification of errors, such promoters will be liable for penal action by MahaRERA.

According to the RERA Act, developers have to update some information quarterly and some information once a year.

The following items are mandatory for developers to update every 3 months. Incremental changes in various building plan approvals; Physical progress of the project; Present status of booking of plots/Apartments/Units/garages; If the amount is not withdrawn within the prescribed period, the developer’s own declaration (Self certification of promoter in case of no withdrawal) is included.

As per Form 5 to the developer
Annual statement of accounts of the project chartered accountant and quality assurance certificate of the project engineer as per Form 2A are essential to be recorded on MahaRERA’s website every year.

Also Read: RERA is not a Monster… We are here to save the interest of Home Buyers and regulate the Industry: MahaRERA Chairman

The post Positive results of notices given to developers, Information about completion of 700 projects received appeared first on Square Feat India.

MahaRERA has now made an official arrangement to solve this problem. For this, MahaRERA has implemented a counseling system at the headquarters of BKC, Bandra East. The counseling group will have its office on the fourth floor of MahaRERA’s headquarters.

The needy can avail the services of these counselors during office hours. Maharera is the first regulatory authority in the country to implement this kind of facility and system.

After registering the house, the home buyer may have various questions like not getting possession of the house within the stipulated period, the quality of the house is not right, there are various problems in the completion of the project. Homebuyers request MahaRERA to resolve these issues. For that, how to apply to MahaRERA, what to take care of, how to get relief, it is not known to the common homebuyer.

But after coming to these counsellors, these counselors will guide them in filing the complaint. The affected homebuyers will be facilitated to understand how to file a complaint, what is the status of the complaint, when is the hearing and what is the current status of their complaint by meeting them face to face with the counsellors.

Project developers may face the same questions as home buyers. They may also need guidance. Developers are required to register every new housing project with MahaRERA. How to register the project with MAHARERA and then what matters need to be fulfilled from time to time as per RERA Act, what information related to the project needs to be updated every 3 months, home registration by home buyers. They can meet these counselors to understand how to account for the money received, how and when to conduct constitutional audit, and many other aspects related to such regulatory process.

Also Read: MahaRERA to counsel home buyers and even developers

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By Varun Singh

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has come out with a fresh circular for deciding the seniority of complaints.

The circular states, “RERA Act was enacted so as to establish the Real Estate Regulatory Authority having amongst others some of its objectives as being, protection of the interest of the consumers in real estate sector and to establish adjudicating mechanism for speedy dispute redressal.”

Section 31 of the Act, enables any aggrieved person to file a complaint with MahaRERA for any violation or contravention of the provisions of the Act or the Rules and Regulations.

Chairperson, MahaRERA is empowered with the powers of general superintendence and directions in the conduct of the affairs of the authority.
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In the interest of justice, equity, and good conscience it is necessary that complaints filed are heard and disposed of on merits in accordance with and as per their seniority.

The circular further states, hence, all complaints filed with MahaRERA shall be heard and decided on merits by the respective single benches of MahaRERA or the Adjudicating officer as the case may be as per the seniority of the complaint which shall be decided as per the date of filing/registration of the complaint before MahaRERA except in the following cases:

Where the complainant is suffering from a serious life-threatening illness and an application in that regard is submitted along with Doctor’s certificate.

Where a superior Forum/Tribunal/Court directs that the complaint is to be disposed of in a fixed time.

Where complaints in respect of the same project are clubbed together for hearing, then in that event seniority of the clubbed complaints shall be the date of filing/registration of the complaint filed first in point of time from amongst the clubbed complaints.

Where disputes have been settled between the parties before the Conciliation Bench.

Besides the above if due to unavoidable circumstances or in special circumstances if the seniority of any complaint has to be changed, in that event, a proper reason/justification shall be submitted before the Chairperson, MahaRERA and only on approval the seniority of such complaints could be changed.

Adv Sunil Kewalamani, who fights RERA cases said, “This is a great proactive step taken by the authority especially giving priority to complaints by people suffering from serious life-threatening illness on providing doctor’s certificate. This move needs to be appreciated.”

Also Read: Disputes Between Builders & Homebuyers To Reduce

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By Varun Singh

A homebuyer recently approached MahaRERA seeking refund for the booking amount that was paid by him to the builder.

Homebuyer Pranav Kelkar, had booked a flat on the 15th floor of the project Tokyo Bay Phase-1 in Thane by Sai Pushp Enterprises.

Kelkar booked the flat on November 11, 2019, for a total consideration of Rs 29.56 lakh. At the time of booking he paid an amount of Rs 56.678 towards the booking amount.

However, after booking his wife lost her job and hence he was not in position to borrow loan. Hence on November 23, 2019, he informed the developer for cancellation of the booking and sought refund of the entire booking amount.

Kelkar’s complaint was that he hadn’t received the refund of the booking amount, though the builder had sold the flat to other allottee.

The builder on the other hand resisted the claims of Kelkar. The builder stated that the homebuyer during booking signed the booking application form. Thereafter on November 23, 2019 Kelkar informed him that he wants to cancel the booking and asked for refund without specifying any reasons.

The builder stated that as per clause No 16 of the booking application form signed by Kelkar, since the homebuyer has cancelled the booking due to his personal reasons before issuance of allotment letter and within a period of 45 days from the date of booking, the amount paid buy him stands forfeited.

The builder also informed MahaRERA that till date no registered agreement for sale has been executed with respect to the homebuyers flat.

The builder pointed outed that there was no violation of any of the provisions of RERA and hence the homebuyer is not entitled to seek any relief from MahaRERA.

Dr Vijay Satbir Singh, Member 1, MahaRERA, examined the arguments and was of the view that as per RERA the builder is liable to refund the amount to the allottee on demand, if the agreed date of possession mentioned on the agreement for sale has lapsed.

“However, in the present case, there is no agreement of sale between the parties showing agreed date of possession. Hence, the homebuyer’s case is untenable,” noted Singh.

Singh further pointed out that the homebuyer is entitled to seek refund of the booking amount in case the developer violates the provision section 12 of RERA. In this case the homebuyer didn’t contend that he was given any misleading information at the time of booking whereby the homebuyer suffered any loss.

“Hence the claim of the homebuyer under section 12 of the RERA towards the refund of the booking amount cannot be considered.”

Dr Vijay Satbir Singh, Member 1, MahaRERA

Singh also noted in his order that the homebuyer due to his own personal reasons cancelled the booking.

MahaRERA therefore felt that there is no violation of any of the provision of RERA as stated by the builder.

Dismissing the complaint, MahaRERA, noted, that in absence of any allotment letter/agreement for sale, the parties are government under the provisions of the booking application form signed by both.

Also Read: MahaRERA Secy To Deal Non Compliance Application

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