MahaRERA instructs L&T to take only 2% when canceling an NRI homebuyer’s reservation

Posted on May 4, 2024 by supriya

A second criticism leveled at the prospective buyer came from the state real estate regulator for failing to fulfill payment obligations despite numerous reminders.

While considering a complaint submitted by an Abu Dhabi homebuyer, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has instructed Larsen & Toubro (L&T) to take only 2% of the amount already paid and return the remaining amount.

This is the regulator’s second decision following a comparable case involving Godrej Properties.

The conglomerate’s real estate division, L&T Realty, developed a project in Mumbai’s Kurla neighborhood. The non-resident Indian (NRI) paid more than Rs 25 lakh toward the project’s overall cost of Rs 2.29 crore.

However, because the remaining amount was not paid, L&T eventually canceled the reservation. With a cancellation charge of more than Rs 8 lakh, or roughly 3.49 percent of the total flat price, L&T offered the buyer Rs 17 lakh.

When a booking is terminated, MahaRERA’s order instructs L&T to deduct no more than 2 percent of the total amount paid.

On April 8, Moneycontrol reported that MahaRERA had ordered Godrej Greenview Housing Private Limited, a division of Godrej Properties, to take out a mere 2 percent, instead of 5 percent, and return the remaining funds to a buyer who had reserved and canceled an apartment worth Rs 92 lakh at the Godrej Emerald development in Thane, close to Mumbai.

The case

The buyer, currently in the United Arab Emirates, reserved a unit and got an allotment letter in March 2018 at the Emerald Isle-T10 project in Kurla, Mumbai.

The buyer paid approximately Rs 25 lakh, which made up 10.50 percent of the total cost.

Due to the bank subvention scheme’s termination, the buyer could not finish the transaction.

In a subvention scheme, the buyer, developer, and buyer’s lender enter into a three-way agreement whereby the buyer contributes up to 10% of the total cost, with the financial institution bearing the remaining amount. Equivalent monthly installments start once the buyer receives possession of the property.

The developer argued before MahaRERA that the complainant (homebuyer) failed to appear to sign the sale agreement despite its efforts, an assertion that the buyer challenged.

The developer said at the MahaRERA conciliation forum that he was willing and able to reimburse the buyer for Rs 17 lakh.

They could not agree on the sum and thus couldn’t sign the consent terms.

For his inability to travel to India and carry out the sale agreement, he cited COVID-19.

Apart from refunding the allegation of sufficient funds, he asserted that he had enough cash on hand and that the sale agreement was unsigned, so he was not required to pay the developer.

Despite the developer’s request in June 2019, the MahaRERA stated in its order dated March 11 that the buyer had not explained why he had not paid the stamp duty and registration fees required to complete the sale agreement.

“The MahaRERA order stated that despite the respondent’s repeated correspondences, all of these facts point to the complainant’s flimsy justifications for avoiding timely payment and the execution of the sale justifications for avoiding timely payment and the execution of the sale agreement.”

Given that the homebuyer had requested to leave the project along with a refund, MahaRERA ordered the developer to return the money paid without interest after deducting 2 percent of the total consideration (value).

MahaRERA directs Godrej, a real estate developer, to reimburse a portion of the amount that the buyer forfeited.

Posted on April 25, 2024 by supriya

Experts predict that more real estate developers may encounter situations similar to the one described in the ruling, in which the amounts forfeited due to booking cancellations exceed the legally allowable limit.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered Godrej Greenview Housing Private Limited of Godrej Properties to refund the remaining amount to a homebuyer who canceled their booking of an apartment worth Rs 92 lakh at the Godrej Emerald project in Thane, near Mumbai, and only deduct 2% instead of 5%.

Ajit Dabhade, the buyer, paid an earnest money of Rs 5 lakh in June 2019 to reserve a flat worth Rs 92.17 lakh. However, Dabhade opted to revoke the reservation because of difficulties getting the promised loan to cover registration and stamp duty. Godrej Properties then lost all of the money that Dabhade had paid.

MahaRERA ordered the developer to deduct only 2% of the flat’s total consideration value in response to Dabhade’s complaint; this would mean that the homebuyer would receive a refund of the remaining amount.

Dabhade claimed that his inability to receive the entire loan amount as promised made it difficult for him to move through with the purchase. Dabhade chose to cancel, which led to Godrej Properties’ Forfeiture even though the developer offered an amnesty program in 2021 to lessen the interest that has to be paid.

In its March 11, 2024 ruling, MahaRERA found the developer’s forfeiture of the entire amount be unlawful, citing provisions under the Real Estate (Regulation and Development) Act, 2016 (RERA).

Although the booking application form permitted forfeiture of up to 5%, the authority clarified that Godrej Properties’ actions went beyond the bounds of the law.

Upon canceling the booking, the developer lost all the funds the buyer had paid, which amounted to over 5% of the flat’s total consideration value. According to the terms of the booking application from dated June 22, 2019, the developer has forfeited this amount. But according to the RERA’s provisions, the developer’s forfeiture of this amount– more than 5% of the flat’s total consideration — is not right or appropriate,” the MahaRERA order stated.

Additionally, MahaRERA upheld its previous August 2022 order, allowing a maximum forfeiture of 2% of homebuyers who decide to cancel. The authority clarified that Godrej Emerald and other registered projects are subjected to its directives retroactively.

As a result, Godrej Greenview Housing Private Limited has been given 45 days from the order’s receipt to return the money Dabhade paid, less than 2% of the entire flat value.

Godrej Properties did not respond to an email request for comments.

MAHARERA Cancels 13,785 Real Estate Agents’ Registrations

Posted on March 15, 2024 by supriya

The Maharashtra Real Estate Regulatory Authority (MAHARERA) took a significant step and revoked the registrations of 13,785 real estate agents. This ruling demonstrates the authority’s dedication to upholding integrity in the real estate industry and enforcing regulatory compliance.

The reason for the cancellation of registrations is that the individuals did not follow the regulations and did not behave professionally and ethically. To protect the interests of stakeholders and homebuyers, MAHARERA has taken strict action to enforce accountability and transparency in real estate transactions.

A wide range of real estate agents in Maharashtra have had their registrations revoked, underscoring the authority’s proactive stance in resolving non-compliance issues within the sector. Enforcement actions by MAHARERA function as a disincentive to unscrupulous practices and emphasize the significance of conformity to regulatory standards.

Deactivating registrations creates a ripple effect in the real estate market, making things more transparent and accountable for buyers and sellers. It highlights how vital regulatory supervision is to maintaining moral behavior and just business practices in the sector.

Stakeholders expect increased trust and confidence in the real estate market as long as MAHARERA maintains regulatory standards and monitors compliance. By acting decisively, the authority sets a clear precedent that failure to comply is unacceptable, encouraging a culture of professionalism and integrity within the industry.

MahaRERA reports that the success rate of agreements between developers and homebuyers is approximately 50%

Posted on March 12, 2024 by supriya

The RERA Act mandates that MahaRERA provide a forum for consumer or promoter associations to establish dispute resolution to promote the peaceful resolution of conflicts between developers and homebuyers.

The success rate of MahaRERA’s conciliations in settling disputes between real estate developers and homebuyers was 35 to 50 percent. Data given to MahaRERA indicates that approximately half of them proceed with hearings following the failure of conciliation.

According to MahaRERA’s data, since the conciliation forum’s establishment in 2018, the organization has handled over 1,200 cases.

“The conciliation process is going well, with a 35-50% sensation. As things are closed, it is much faster, and there are no more appeals. We do handle cases that go back to us. Ajoy Mehta, Chairman of MahaRERA, told Moneycontrol 50% of the cases, which is a respectable rate.

Of the 1,231 conciliation cases handled, 1,061 have been settled, and 170 are still pending. However, according to MahaRERA, the success rate of conciliation is between 35% and 50%.

Conciliation forum

As per the Real Estate (Regulation and Development) Act, 2016, Section 32 (g), MahaRERA must allow developers and homebuyers to settle their disputes amicably using dispute resolution forums established by the promoter or consumer associations.

The forum consists of promoters’ association representatives from Mumbai Grahak Panchayat. This forum handles disputes between developers and homebuyers resulting from the RERA Act.

It occurs following the buyer’s registration with the conciliation forum. The MahaRERA conciliation forum holds hearings after the developers approve the request to resolve conflicts.

Homebuyers can file a complaint with MahaRERA if the developers refuse to participate in conciliation. If a developer or homebuyer fails to comply with the terms of the agreement reached at the conciliation forum, the aggrieved party may choose to complain with MahaRERA.

Grievances

The MahaRERA has received 24,379 complaints from homebuyers against developers, or vice versa; orders have been in more than 16,474 cases from Maharashtra.

Ways to raise the rate of success?

Members of the conciliation forum assert that party-centricity is the cornerstone of any mediation or conciliation process, and the success rate will only rise when all parties involved approach the process with a settlement mindset.

“A conciliator functions as a mediator, and for there to be a settlement, all parties must cooperate. According to Hitesh Thakkar, a partner at Prem Group and conciliator of the MahaRERA conciliator forum on behalf of NAREDCO, the apex body of developers, “the hearings at the forum do not happen on merits, and all concerned parties have to come with that mindset considering the success of conciliation is also depending on that.”

The MahaRERA and the Advertising Standards Council will use artificial intelligence to monitor real estate advertisements.

Posted on February 20, 2024 by supriya

Artificial intelligence (AI), according to MahaRERA, will be used to identify ads published without a QR code or MahaRERA registration number. As defined by the RERA Act, any project larger than 500 square meters or eight apartments registered with the MahaRERA.

On February 15, the Advertising Standards Council of India (ASCI) and the Maharashtra Real Estate Regulatory Authority (MahaRERA) announced their partnership to identify developers advertising projects without QR codes and registration numbers. To identify developers advertising projects without QR codes and registration numbers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) and the Advertising Standards Council of India (ASCI) announced their collaboration on February 15.

Artificial intelligence (AI) will identify advertisements published without a QR code and MahaRERA registration number.

To defend consumer interests on websites, social media, television networks, newspapers, and other media, ASCI is a voluntary self-regulatory organization for the advertising industry.

MahaRERA and the ASCI have signed a Memorandum of Understanding (MoU) to safeguard the interests of homebuyers, according to a statement released on February 15. Manisha Kapoor, the CEO of ASCI, and Vssant Vani, the administrative officer of MahaRERA, are signatories to the agreement.”

By the agreement, advertisements published without a MahaRERA registration number and QR code will use artificial intelligence. In response, the statement announced the formation of a core group tasked with tracking, observing, and evaluating these ads to eventually bring them to MahaRERA’s attention.

Developers are prohibited from advertising a project unless it has been filed with MahaRERA. We have taken ex officio legal action against developers who have displayed advertisements without a registration number.

To allow prospective homeowners to obtain comprehensive information about a project with just one click, it is now necessary for advertisements to include a QR code, according to MahaRERA Chairman Ajoy Mehta.

He went on, “There are newer forms of advertising emerging in the new age media, which we cannot ignore. Therefore, to recognize and stop such deceptive or incomplete advertisements across all media, we need the aid of ASCI, a self-regulatory organization, and industry experts. The most recent action will aid in reducing these false and deceptive commercials.”

MahaRERA is tightening its grip on developers.

Since 2023, MahaRERA has been taking measures against publications of advertisements that do not include a QR code or registration number. Aside from the traditional media, the authority has expanded the reach of new-age media.

MahaRERA projects may get property cards soon

Posted on March 28, 2022 by zeeshan

A plan to issue property cards to apartment owners may soon begin with projects registered with MahaRERA, a senior tax official said. The scheme of issuing individual property cards for apartments (vertical objects) was approved by the state cabinet in 2019. All apartment owners were to receive these property cards with information about carpet areas, utility rooms, loan information, and 7/12 extract (Utara) of the land.

Committee to solve objections

However, the project gave rise to a number of proposals and objections, after which a commission was set up to make recommendations to the state before the project was launched. The purpose was to map the vertical growth in cities and rural areas and maintain an independent rights register and registers of flats and individual apartments units.

“The Committee on Vertical Property Cards presented its recommendations to the government and proposed a gradual implementation of the scheme. Discussions are underway with the Maharashtra Property Regulatory Authority (MahaRERA). The final decision will be made by the government,” the official said.

The state issues property cards for urban areas and 7/11 declarations for rural areas that define the property rights of one or more persons. However, there is no document confirming the ownership of a person who owns an apartment in a house built on a particular site.

With this in mind, the Ministry of Revenue decided to adapt the Maharashtra Land Revenue Code, the Property Register and Apartment Registration and Building Codes to the Maharashtra Land Revenue Code of 1966. This allows the state to issue a property card for apartments. Maharashtra has about 56 lakh property cards for plots and 2.5 crore 7/12 extracts. “But there is no evidence that vertical buildings such as apartments or commercial complexes were built on these lands,” the official said.

Also read:-

MahaRERA website set to display complaints on promoters and projects

Noida authority plan policy to ensure periodical structural audits of buildings

Maharashtra realtors to stop construction due to surge in raw material price

Posted on March 24, 2022 by zeeshan

CREDAI Maharashtra strongly opposed the proposal to introduce a 1% metro surcharge on all property purchases in Pune, Mumbai, Thane and Nagpur from 1 April and called on the government to reconsider this decision.

Given the rise in prices of key raw materials, including cement and steel, Maharashtra realty developers are planning to stop buying raw materials and construction work on their sites. The developers have also requested the MahaRERA (Maharashtra Real Estate Regulatory Authority) with a request to extend the deadlines for completion of current projects by at least 6 months. Then they have time to put the construction work on hold until prices get rationalised.

Projects will be stopped or delayed-

The real estate sector has proven resilient in the difficult times caused by the pandemic. The industry has been able to survive thanks to the easing of the stamp duty, lower mortgage rates and agreements by developers. Indian real estate, the second largest employer, is in a recovery phase. It will not be able to absorb this runaway price increase, and many projects will be delayed or stopped without government intervention, which ultimately affects consumers and construction workers at a large pace.

Currently, about 10,000 construction sites in Maharashtra directly or indirectly employ about 1 million workers. Any closure of works will directly affect them and may also result in a minimum delay of six months.

The price of steel, the main component of building materials, was Rs 42,000 per tonne a year ago and rose to about Rs 84,800. Cement prices increased to Rs 400 from Rs 260 for a bag of 50 kg. The rate for 4-inch bricks was Rs 6,500 per thousand and increased to Rs. 8000. Sand and wash sand show the same price increase. Along with building materials, electrical cables, fixtures, tiles, pipes, plumbing, manufacturing, sand and secondary minerals also increased by 40% to 45%, according to the industry body.

Requires Government Intervention-

CREDAI Maharashtra, through its various city associations, has already sent several inquiries to Deputy Chief Minister and Finance Minister Ajit Pawar and Revenue Minister Balasaheb Thorat on various issues requiring government intervention during the pandemic. In addition, CREDAI-Maharashtra strongly opposed the proposal to introduce a 1% metro surcharge on all property purchases in Pune, Mumbai, Thane and Nagpur from 1 April and called on the government to reconsider this decision.

Price beyond affordability-

This was stated by the President of CREDAI Maharashtra Sunil Furde, “Prices of steel, cement and other building materials have been steadily rising over the past 2 years. Now they have risen to a level that many developers cannot afford, especially in Tier II and Tier III cities. The association of 61 member cities affiliated with CREDAI Maharashtra had no choice but to temporarily suspend purchases and suspend construction work.”

While some material price increases in recent weeks may be related to the war between Russia and Ukraine. More than 60 Maharashtra CREDAI departments have asked the government and agencies to check if there has been a recent rise in construction materials cost, over past few months, naturally or due to cartelization and profiteering.

The prices of important building materials, including steel, cement, brick, sand and wash sand, electric cables, tiles, pipes, plumbing, sand, secondary minerals, among others, increased by 40% and 45%. The effect of this on access costs is around Rs 400-600 per square feet. It is expected to affect home buyers, especially in affordable segments.

Also read:-

MahaRERA website set to display complaints on promoters and projects

MahaRERA issues warrants for Rs 633 crore against errant builders

MahaRERA website set to display complaints on promoters and projects

Posted on February 21, 2022 by zeeshan

Homebuyers can check details of project and developer complaints on the MahaRERA website from Saturday (i.e., February 19, 2022). Officials from the Maharashtra Real Estate Regulatory Authority said. This would help homebuyers make an informed decision before investing in the project. The official said 16,000 project and developer related complaints received by MahaRERA would be displayed on the website.

The project information on the MahaRERA website would allow customers to know the total number and status of complaints, if any, filed on projects, the number of non-compliance requests and other details. At the same time, information about promoters will also be useful for consumers.

Ajoy Mehta, MahaRERA chairperson, said there was a growing demand for these details from homebuyers. According to homebuyers it will help them make an informed decision about a particular project. All these details will be available in a separate category in the coming week. Details of projects and promoters will be available next week and will be available on the main page of the website.

Greater transparency-

The information regarding project complaints is currently available to complainants and concerned developers. Only final orders are available in the public domain. The real estate (Regulation and Development) Act 2016, which enters into force on 1 May 2017, aims to ensure that transactions between builders and home buyers are regulated by the norms of efficiency, transparency and accountability.

Ramesh Prabhu, chairman of the Maharashtra Society Welfare Association said, “The new decision is a step towards greater transparency. The consumer must have all the information about the project. Homebuyers can know the status of projects and developers.”

State Credai (Confederation of Real Estate Developers Associations of India) president Sunil Furde said, the deal would definitely benefit homebuyers as they get all the information they need.

Also read:-

MahaRERA issues warrants for Rs 633 crore against errant builders

The new MahaRERA rule help home buyers to track project status

MahaRERA issues warrants for Rs 633 crore against errant builders

Posted on February 16, 2022 by zeeshan

Over the past four years, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued takeover orders of Rs 633 crore against misleading developers, with Mumbai’s suburbs bearing the greatest value. Action taken in coordination with 13 debt collection agencies, including those in Mumbai and Pune, included 717 such requests to expedite refunds to flat buyers.

The Mumbai suburb leads with 302 such recoveries, followed by Pune (162) and Thane (99). Warrants have been issued for 256 projects, of which 83 are in Pune, 63 in the suburb of Mumbai and 41 in Thane. Other collections involved include Raigad, Alibaug, Aurangabad, Palgar, Mumbai City, Nagpur, Satara, Nashik, and Sindhudurg.

According to sources, MahaRERA chairman Ajoy Mehta has initiated talks with the revenue secretary and district collectors to execute orders as soon as possible to help home buyers get their investment back. Under the Real Estate (Regulation and Development) Act, the adjudicating officers of MahaRERA issue recovery warrants against misleading developers. They are sent to collectors to confiscate property and recovery of dues.

Details of recovery warrants

MahARERA Secretary Vasant Prabhu said he would publish a list of recovery order details on the MahARERA website. Collectors are notified when arrest warrants are executed. The recovery process involves the collector issuing an attachment certificate. The property then confiscated and the developer has the option to repay the amount. Failure of repayment, follow the auction process. But activists say the orders are mostly on paper and that no one is following them and not executing them, leaving citizens in battle.

Maharashtra Societies Welfare Association Chairman, Ramesh Prabhu said, when MahaRERA issues a debt collection order and the defendant / organizer fails to comply, the recipients can file a request for non-execution of the order. The buyer may want to leave the project and invest elsewhere. These orders need to followed to build the trust of the citizens

Also read:-

DDA extends the last date for its special housing scheme

The new MahaRERA rule help home buyers to track project status

MahaRERA lists 3,400 projects lapsed across the state

Posted on December 27, 2021 by zeeshan

The Maharashtra Real Estate Regulatory Authority (MahaRERA) listed 3,425 projects as lapsed due to late completion. According to authorities, at the beginning of October there were 3,371 projects on the list, of which 210 extended and another 200 added to the list.

Developers restricted from selling-

MahaRERA has listed projects with completion dates in 2017, 2018 and 2019 as deferred or expired. Most of these projects are located in Pune, Mumbai, Thane, and Raigad. According to the rules, the developers of these projects banned from selling and promoting projects. Until a request was submitted for an extension of the corresponding completion date, which required the consent of 51% of the buyers.

Nearly 95 projects exceeded their deadlines in 2017, 508 in 2018, 1107 in 2019 and 994 in 2020, according to the data. Many of them did not even comply with the one-year renewal period under Section 6 of the Regulation and Development Act (RERA).

Some projects removed and some extended-

In November, the developers were asked to provide the necessary documents to request an extension and continue work on projects. MahaRERA has published a list of “overdue” projects because the developers did not request an extension. Or upload the Form 4 from Architects on website after the projects were completed. The developers of 99 projects have submitted documents after a new prospectus issued last month, which outlines the legal conditions for expired projects. A total of 286 projects received for extension.

According to MahaRERA officials, up to 99 projects will be removed from the previous list (3,371) over the next two days. Others had to apply for an extension of the validity of their occupancy certificate (OC). Project names will only be removed from the expired list if developers are looking for an extension. Representatives from the welfare association noted that it was good that the authorities marked the projects as delayed. This will help apartment buyers try to implement the project through promoters.

Also read:-

CREDAI: Property prices may increase by 10-15% in future!

Builders have to disclose the status of mortgage loans for apartments

Posted on November 15, 2021 by zeeshan

Real estate developers must declare security interests created by them for projects registered with an authority. The decision will increase transparency and inform potential home buyers about any mortgages or loans that the developer has taken in relation to the apartments they intend to buy, or the project itself.

This information is now available with the Central Registry for Securitization and Asset Reconstruction and Securities of India (Cersai). Cersai is the central authority that processes and stores such data. Established under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act), Cersai aims to prevent credit fraud, such as loans from different banks on the same property.

Cersai has collateral data created from 22 January 2016 for registered commercial banks and, with effect July 1, 2016 for all other persons registered with it. It has started the process of registration of data on security interest in residential and commercial properties under construction from June 2017.

Home buyers should be aware of the loan status of apartment-

MahaRERA has clearly stated that home buyers and winning bidders must also be aware of the security interest on real estate projects and apartments they are interested in buying. Often home buyers buy a property without knowing its mortgage or loan status, which later leads to lawsuits and legal complications.

If the developer took out a loan by mortgaging inventory or some apartments, and can not return it. The banks will then acquire the property to get their contingent back and that this process can affect the home buyer. However with the new decision this situation can be avoided as Cersai keeps a record of all properties that have been sanctioned for loan.

Real estate developers must now submit a report to Cersai on the security interests created in the property project. Along with an encumbrance certificate when the project registered with the authority.

In the absence of security interest, the developer must provide a supporting commitment or provide an undertaking. The developer also expected to submit a report to Cersai on changes in property security interests. According to MahaRERA, submitted Cersai reports must be generated within 10 days of the submission date.

Also read:-

Best place to live in Navi Mumbai

CIDCO begins geo-tagging of plots / land parcels in Navi Mumbai

MahaRERA launches help desk to resolve general queries of homebuyers

Posted on September 9, 2021 by zeeshan

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has opened a help desk for citizens to resolve inquiries from home buyers regarding various services. Toll-free numbers are 1800 2103770 and 022-69157100 operate from 7:00 am to 11:00pm every day, except Sundays and public holidays.

MahaRERA’s secretary Vasant Prabhu said the technical assistance was launched when many citizens declared their inability to communicate with the authorities after the pandemic for various problems. A team has been appointed to assist citizens in resolving their concerns. The team will assist them in filing complaints online or checking dates of hearings or other project registration requests. The support service will provide general information. If there are citizens who want to understand more technical issues, a dedicated technical team will help them.

Ramesh Prabhu, chairman of the Maharashtra Society Welfare Association, said, this move would help citizens who are unfamiliar with MahaRERA’s activities. Many of MahaRERA members tried to call the toll-free number and found it very helpful. This move is very advantageous during the time of pandemic. Citizens can contact the support service and check the status of the project before investing in it.

The helpdesk will also help people file complaints under the direction of on-duty staff.

Manjunath Kakkalameli, a district court lawyer, said, even though the virtual hearing took place during the pandemic, there would be a help desk available to help citizens. Section (3) of the Real Estate (Regulation and Development) Act 2016 requires the authorities to introduce an online system for submitting project registration applications.

Also read:-

MahaRERA marks 1,824 residential projects as ‘expired’ across the state

Centre to raise Rs 15,000 crore by realty and hotel assest monetization

MahaRERA marks 1,824 residential projects as ‘expired’ across the state

Posted on September 3, 2021 by zeeshan

About 1,824 residential projects in the state were declared as “expired” due to exceeding completion dates set by the Maharashtra Real Estate Regulatory Authority (MahaRERA).

These projects will now require 51% of the buyer’s consent to ensure that appropriate completion dates are extended. 103 of these projects were completed on time in 2017, 541 next year and 1,180 in 2019.

According to an official, many projects were not completed, even after a one-year extension under section 6 of the Real Estate (Regulation and Development) Act. “All of these projects will now require the consent of 51% of the buyers in accordance with Section 7 (3) of the Act”.

Developers are now restricted to promotions-

Due to the Act, developers of these projects are prohibited from selling, advertising, or promoting them before applying for an extension. Of the 1,824 projects listed by MahaRERA as overdue or expired, 350 project renewals have been submitted. However applications of these projects are currently pending or under scrutiny.

MahaRERA has extended the deadline to September for projects that were supposed to be completed in March. “The rest of the projects had deadlines before 2020 year, when the pandemic hit,” a MahaRERA spokesman said. A majority of the projects are based in Pune, Mumbai, Thane and Raigad.

An additional 1,500 projects may be under the scanner since their deadline expired in March 2021. Developers of these projects may now benefit from a one-year renewal under RERA Section 6.

Strong message to arrogant developers-

The developers felt that the authorities should make decisions appropriately as the market was down and there were difficulties in getting documents on time.

Anuj Puri, Anarock Property Consultants chairman said, the MahaRERA’s decision was a strong signal for arrogant developers who were postponing projects. “Home buyers have been waiting to gain possession of projects for the past three years. The last year was unique as the pandemic resulted in disruptions in the supply chain and inaccessibility of buildings. The year 2020 should be considered as an exception.”

Credai Maharashtra President Sunil Furde said, “MahaRERA was right to point out the status of unfinished projects. However, many projects remain “unfinished” for technical reasons. The authorities need to consider and evaluate this aspect as well. In addition, the projects for Credai members listed on the portal were completed on time. The “completion certification” for these projects has been received from municipal corporations before the registered dates. There are projects that have been completed, but completion certificates were received later.”

Also read:-

Developers collecting money without agreement is violation- TNRERA

You can now apply for completion certificates online – Noida Authority

Non-farm use of plot only after infrastructure in place- MahaRERA

Posted on August 18, 2021 by zeeshan

The Maharashtra Real Estate Regulatory Authority has stated that a simple conditional permit to convert an agricultural land into non-agricultural non-urban areas without providing any infrastructure can only qualify as an ongoing project and therefore must be registered under RERA.

A permit to convert a plot of land from agricultural to non-agricultural is only the beginning of the process and ends when tehsildar registers, that all imposed conditions are met and constitutes a “completion certificate”, MahaRERA explained.

Dealing in “plotted development” outside urban areas, MahaRERA instructed a developer to immediately register a project on August 10. It was found that the conditions imposed over a nearly decade-old nod for non-agriculture (NA) use by the Raigad collector remained pending.

No Advertisement before registration-

Ajoy Mehta, MahaRERA chairperson, said, the actual nomenclature of the completion certificate means that the premises are finished and suitable for human habitation. The use of Non Agricultural land starts when tehsildar corrects that all conditions are met.

Mehta ordered the developer not to advertise, sell or approve non-agricultural bookings in a project called Amarai in Kolad for sale. Until it is registered under Section 3 of the Real Estate (Regulation and Development) Act (RERA). He also imposed a fine of Rs 50,000 for non-compliance with the provision of the law and failure to register an ongoing project. “The amenities that were promised and those listed in the NA judgment were not delivered. So, the property remains deprived of the amenities to allow a buyer to use it. Therefore, the project has no CC until the date,” said the order.

Mandatory to give Amenities stated in agreement-

Last year, the Amrai Kolad Plot Owners Welfare Association filed a complaint against Sai Developers, and others. According to their lawyer Zaman Ali, in May 2012, the Raigad district collector gave conditional NA permission to the developer to build infrastructure facilities, including roads, storm drains, sewerage, water supply and open space development within two years. Shortly after receiving permission, the developer started advertising the project, promising infrastructure services and a possession period of development costs of Rs 50,000 per plot. The complaint is that despite the payment “the project remained unfinished”.

After RERA went into effect on May 1, 2017, in October 2017, the developer announced new announcements for the remaining unsold plots offering services including the pool. But if infrastructure and services are not provided, the project will fall under RERA as an ongoing project that requires registration, the association said.

The developer, through his lawyer Tanmay Ketkar, argued that the project was completed in 2014, met all the conditions of NA and all plots were sold. So this is not an ongoing project, and the complaint is a “mala fide” harassment.

“In case of planned development, it is “imperative” that all agreed amenities should be completed, said Mehta.

Other authorities should also follow same process

The order was issued to help the government control the damage caused by COVID-19. Also to ensure that the implementation of the project is not affected.

The conditions or time limits for the implementation of projects that expire at any time during the force majeure period will be automatically extended till the expiration date. However the rights of allottees will not get affected through the order. The notification said that an association of promoters had presented themselves before the authority for help in view of another disruption ravaging the industry.

Developer Niranjan Hiranadani, National president of realty industry body Naredco, said, “This is a step in the right direction and the sector hopes that other authorities besides MahaRERA will follow the same thought process and provide the same relief.”

MahaRERA restricts about 644 projects across Maharashtra from sales

Posted on August 3, 2021 by zeeshan

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has banned the sale of a total of 644 residential projects in Maharashtra. Several units were stopped due to late completion and delivery, with Pune accounting for almost 30%.

According to data released by MahaRERA, most of the blacklisted project developers are smaller players with less than 100 units per project. Apart from some projects of well-known developers in the region most of them belong to small developers. Approximately 85% of blacklisted projects had an average of 70 units in each project. Such a blacklisting means that the project cannot be advertised, marketed or sold in any condition.

The list also consists some of the Maharashtra Housing and Area Development Authority (MHADA) projects promoted by the state government.

Most apartments are sold!

Anarock real estate analysts report that 80% of the apartments in 644 projects have already been sold. According to MahaRERA, 16% of the projects were to be completed in 2017 and the rest were to be completed in 2018. Due to market size, Mumbai topped the list with 274 blacklisted projects, or about 43% of the total, followed by Pune with 29%. The rest are in smaller markets like Aurangabad, Nagpur, Kolhapur, Nashik, and others.

A developer in the region states the condition of small or new developers. He said “ the smaller developers are increasingly struggling with RERA compliance, e.g. proof of capital and due diligence for land. Banks, NBFCs and housing finance companies are often reluctant to lend capital to such agents for fear of low or inadequate securitization.

Anuj Puri, the chairman of Anarock, said, this move by MahaRERA is a strong signal for disobedient developers who are constantly delaying projects. Homebuyers have been waiting to take over home ownership since 2017 or 2018. In the Mumbai Metropolitan Region (MMR) there are at least 496 projects (launched in 2014 or earlier) that have been delayed or stalled so far, while in Pune almost 171 projects have been delayed or stopped.

Publicly Disclose the Apartment Sales: MahaRERA

Posted on June 17, 2021 by zeeshan

Due to a growing number of complaints about developers illegally transferring the same apartment to multiple buyers. The MahaRera Real Estate Regulatory Authority (MahaRera) ordered them to publicly disclose whether the apartment was sold or reserved.

To avoid more than one transaction with apartments / plots, it is mandatory to provide information immediately once a flat is booked or sold. According to experts from the real estate market, there are cases where builders only issue an allotment letter to the buyer. (A letter of allotment kind of confirmation that the apartment is booked).

The apartment can be resold to another buyer and the first buyer remains unknown of this. Also the same apartment can even be mortgaged to banks or financial institutions. Ultimately, neither the first nor the second buyer is aware of the sale of the apartment. Also the bank is not aware of this kind of sale. Thus, the developer illegally collects funds for the same apartment from two or even three different buyers.

Difficulties to lenders and consumers–

Pankaj Kapoor, an official from a real estate firm, Liases Foras, said, the main purpose of RERA was to suppress such threats and actions. The law stipulates that developers upload information about mortgaged and sold properties on the RERA website. Previously, it was noticed that many builders’ projects were stuck in the NCR and MMR trap and practiced similar approaches. It had caused several difficulties to lenders and consumers. These builders need to severely be punished as this undermines consumer confidence and discredits the entire industry.

Shop Sold Multiple Times

Manohar Shroff, Navi Mumbai based builder said, Navi Mumbai has become “a villain’s port”. The whole industry suffers from some dishonest brokers and builders.
In one case, Shroff said a developer cheated or misled several investors and fled to Pune. In another case, a builder fled with Rs 100 crore, and a third sold a shop several times in Belapur’s CBD and misled buyers. So, to avoid these kinds of fraud, buyers should register their documents as soon as possible.

Must Register Sales Agreement-

Property law expert, Lawyer Anil Harish said, it appears that even after the arrival of RERA, some developers continue to issue more than one allotment letter for a single property. This is obviously wrong in both civil and criminal law.
Buyers should also check the MahaRERA website to see if the project registered and if building permits have been received. Also search sub-registrar registrations to check ownership and mortgages.

According to experts, buyers must register an agreement if more than 10% of the apartment price is paid. Stamp duty for a letter of employment, a letter of intent or a memorandum of understanding (MOU) can be 1% of the price to encourage people to sign up. This 1% must credited to the stamp duty specified in the contract, so you only have to pay the remaining 4%.

Also read:-

BRERA wants separate teams to help home buyers

CREDAI-MCHI urges Maharashtra Government to cut stamp duty to 2%

Gujarat g overnment offers property tax waiver for restaurants, hotels, resorts & water parks for FY21-22

Reasons to Invest in Panvel

MahaRERA Orders Acme Housing to pay interest of 21 months of delay

Posted on May 21, 2021 by zeeshan

Maharashtra Real Estate Regulatory Authority (MahaRERA) has commissioned developer Acme Housing India Pvt. Ltd to pay interest on deferred ownership. The authority has directed to pay 21 months of interest to homebuyers of the Alpinia project in Thane. In accordance with section 18 of the RERA Act.

The order from MahaRERA member Vijay Satbir Singh was received in response to a complaint from home buyers Aniket and Rajashri Alashe. They had booked an apartment in this project in December 2014 with the promise of ownership until 31 December 2017. The buyer also made a payment of Rs 1 crore. But the developer did not transfer the property under the registered sale and purchase agreement.

Thane Municipal Corporation was responsible for the delay!

Advocate K.R. Shekhawat, quoted by Acme Housing India Pvt. Ltd. strongly opposed the demand for deferred ownership. He said clause 9.2 of the agreement allows home buyers to terminate the agreement if the ownership has not been transferred. But they had not canceled the agreement. Shekhawat said that clause provides for an extension of the period of ownership in the presence of force majeure. (Force Majeure refers to a clause included in contracts to exclude liability for unpredictable and natural disasters that disrupt the course of events and obstruct participants from completing their task).

Claiming that Mumbai High Court did not allow Thane Municipal Corporation to issue building permits and Occupancy Certificates (OC) for projects on Ghodbunder Road due to lack of water in PIL (Public Interest Litigation). He said the Alpinia project suffered from this stay order because the project was near Ghodbunder Road.

Shekhawat also claimed that the demonetization and implementation of RERA and GST created a monetary crisis. This creates a lack of funds and daily wage laborers could not hire for construction work. He also cited a lack of sand, cement, and ready-mixed concrete in 2013-2014 as well as a ban on sand mining as reasons for the delay in project completion.

K.R. Shekhawat also accused Thane Municipal Corporation and said the OC granted four months after the completion of the project. He further said the ownership offered to home buyers after receiving OC. But they approached MahaRERA instead and therefore their complaint could not be resolved after granting the OC.

Violation of sale and purchase agreement

Lawyer Tanuj Lodha, representing home buyers, filed an objection and firmly rejected the developer’s claim. He claimed that the developer had accepted significant capital from buyers and the excuse of force majeure is baseless. He claimed that the developer had violated the terms of the sale and purchase agreement and the Maharashtra Real Estate Court of Appeal. In addition, the Bombay High Court has clearly ruled that the developer is obliged to pay interest on deferred ownership. Under section 18 of the RERA in the event of a breach of the terms of the agreement.

Developers should be aware of market risks!

MahaRERA member Vijay Satbir Singh noted that the sale agreement refers to a six-month extension or grace period until June 30, 2018. But by that date, the developer had not granted ownership. He rejected arguments about demonetization, RERA, GST, sand mining, etc. He said that the developer should have a good understanding of the real estate sector and market risks before starting the project. The developer failed to inform the applicants about the restrictions and also did not provide explanation on delayed possession.

He claimed that the Maharashtra Ownership of Flats Act (MOFA) allows the developer a maximum extension of six months or until June 30, 2018. After RERA came into force on May 1, 2017. The developer should pay interest on late ownership in accordance with the provisions of section 18.

Singh also noted that the buyers filed a lawsuit on June 20, 2020, after the developer received the OC and offered ownership of the apartment on March 3, 2020. “In that sense, MahaRERA feels that under the provisions of section 19 RERA. The buyers are obliged to take possession of the apartment within 2 months from the date of OC. However, the applicant violated the provisions of section 19(10). He noted and denied the increase in interest after March 3, 2020. The order stated that Acme Housing should pay 9.3 percent interest for each month from July 1, 2018, to March 3, 2020.

Also read:-

Andhra Pradesh’s housing to use energy-efficient building technology

Promoters of Omkar Group arrested for laundering Rs 87 crore

flats in navi mumbai

MahaRERA order developers to disclose sold, booked inventory

Posted on April 21, 2021 by zeeshan

The format requests data such as a total number of floors/wings, number of floors/shops/ townhouses, carpet area, sold/reserved/unsold property. And the date of registration at the sub-registrar’s office.

AURANGABAD: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered all developers to unveil their inventory. This includes the sale of apartments, houses, land, booked flats, as well as other construction details. This database is important because it will provide greater clarity to buyers and prevents more than one transaction.

Information in proper format-

MahaRERA asked developers to provide details in the prescribed format. Referring to the permissible provisions of the Real Estate (Regulation and Development) Act 2016, which has been in force since May 2017.

Currently the CREDAI Maharashtra has 3,000 active members in 59 cities across the state.

According to RERA, any aggrieved buyer can file a complaint with the competent authority. In relation to a real estate project that has been registered for violating any laws or rules and regulations related to RERA. The authority can put in place a complaint access mechanism to deal with such complaints quickly. Anyone who feels dissatisfied by an instruction, decision, or order from MahaRERA or a judicial officer. He/She can appeal to the appellate court and then to a higher court.

CREDAI welcomed MahaRERA decision-

Confederation of Real Estate Developers Association of India (CREDAI), Maharashtra, has appreciated this decision of the MahaRERA. Officials from CREDAI said this decision aimed at corrupt developers who are not registered with the association’s offices in the state.

Sunil Furde, CREDAI Maharashtra president said- “We appreciate and welcome the new MahaRERA order, which seems to be aimed at eliminating illegal construction, which is mainly seen in small towns.

Now the developers will disclose or announce the number of sold units and upload the details to the MahaRERA website in accordance with legal requirements. CREDAI correctly accepts the MahaRERA circular as defined by developers who do ethical business and comply with the law.

Also read:-

UP-RERA postpone physical hearing of complaints

DTCP launches online portals to buy affordable home in Gurugram