The Maharashtra Real Estate Regulatory Authority (MahaRERA) will not extend the deadline of July 31 for developers to register projects under the Real Estate (Regulation and Development) Act, 2016 (RERA). MahaRERA chairman Gautam Chatterjee on Friday said the preparedness in the state with regards to implementation of RERA was far better than in some other states. As such, there was no question of extending the deadline even if the central authority considered an extension. “We want to bring in transparency into the system and developers will have to be compliant before the deadline of July 31,” Chatterjee said. Industry estimates put the number of real estate projects in Maharashtra at about 30,000. Some market experts believe that nearly half of these could remain unregistered at the end of the month. So far 307 projects have registered and another 15,000 projects should get registered by the end of the month, Chatterjee said. “The pace of registrations has been picking up and we are getting about 200 registration applications a day now,” he added. According to the Confederation of Real Estate Developers Association of India (Credai) there are around 30,000 projects in Maharashtra that need to get registered.
Speaking to FE, Chatterjee said the projects that do not get registered by the end of the month will be in violation of the provisions of Section 3 of RERA and could be penalised for non-compliance. “We will soon be putting up an email ID on our website where one can write to us if they come across any violations and we will proceed on the complaint as a source-based information and take action if required,” Chatterjee said on the sidelines of the CII Realty and Infrastructure Summit in Mumbai.
Section 3 of the Act states that developers/promoters cannot advertise, market, book, sell or offer for sale, etc, without registering the project with the RERA authority established under RERA. The Act provides that the projects that are to be covered under the Act shall make an application to the authority for registration within three months of commencement of the Act.
The penalties under the Act for non-compliance of registration norms for real estate agents and promoters are also defined lucidly. In case a promoter is found to be in violation of the provisions under Section 3, he can be made liable to pay a penalty of an amount up to 10% of the estimated cost of the project.
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If the promoter continues to default even after the order imposing penalty, he can be imprisoned for up to three years or asked to pay a fine of 10% of the estimated cost of the project or both. The Act states that the quantum of penalty and the estimated cost of the project is to be determined by RERA.
Additionally, if any real estate agent is found to be in violation of the provisions of the Act, there is a penalty of Rs 10,000 for every day during which such default continues, which may cumulatively extend up to 5% of the cost of plot, apartment or building, as the case may be, of the real estate project for which the sale or purchase has been facilitated as determined by the authority.
In the first penalty under RERA norms, earlier this month MahaRERA fined a Chembur-based real estate consultant firm Rs 1.2 lakh as a fine for a misleading advertisement of an ongoing construction project.
RERA came into effect from May 1. Maharashtra has been one of the first states to notify its rules and establish a regulatory authority in the form of MahaRERA.