Mint Primer Regulating real estate: Tips from Maharashtra

What do the new orders state?

The Real Estate (Regulation and Development) Act 2016 aims to regulate transactions, so that projects are completed and handed over in time. MahaRERA has now issued more orders for developers—on delivery dates, maintenance of bank accounts, parking space and complaint redressal. It kept the registration of 1,750 lapsed projects under suspension due to delays. Senior citizen housing project guidelines have also been issued. And the registration of 20,000 property agents has been suspended for a year. It also issued a framework for third-party monitoring of construction quality.

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Why are these important?

Buying a home is the biggest investment a person makes in their lifetime. However, homebuyers have been victims of delays and unkept promises by developers. The slew of new orders from MahaRERA addresses many of these challenges. For instance, it has noted that developers have not handed over amenities years after delivering the homes in many cases. In a first, all the details and exact delivery dates of amenities will be included in the sale agreement. MahaRERA will also start a project grading system, with legal, technical and financial details, so that homebuyers can make informed decisions.

How has the industry responded?

The Confederation of Real Estate Developers Association of India has expressed support, saying this will boost trust and confidence among buyers. The orders will also strengthen the integrity of the projects and the real estate assets, making them more attractive for investments. Developers would aim to set higher standards for buyers.

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How do other states compare?

MahaRERA continues to lead, with over 46,000 projects having been registered since its launch in May 2017. Uttar Pradesh RERA, which has received most consumer complaints, leads in complaint resolution. MahaRERA has been the most active among states in introducing new regulations. For instance, MahaRERA last year made it compulsory to include a unique QR code for a project and the RERA registration number in all project marketing and advertising material. UP RERA implemented the same this year.

How has RERA fared so far?

RERA brought in many changes by mandating project registration, delivery timelines and even transparency in transactions. But it remains work in progress. There are several instances where a RERA has issued orders for recovery of interest penalty or refund and compensation in favour of homebuyers, but builders have not complied with them. The execution of recovery orders has been dismal. As a result, homebuyers have had to reach out to other grievance redressal tribunals and forums.

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