MahaRERA may take suo motu action against builders for missing registration deadline
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is planning to take suo motu action against property developers whose ongoing projects have not been registered with itself even after the July 31deadline.
About 9,000 ongoing projects and 7,200 property brokers in the state had applied for registration with the authority.The number of applications for ongoing projects is likely to move closer to 10,000 by midnight when the deadline comes to an end, an official at the Authority said, referring to the proposed suo motu action.
According to developers, there are more than 20,000 ongoing realty projects across the state that had to be registered with the authority.
Although the pace of registration remained slow until last week, the momentum increased closer to the deadline of July 31. Over the last three days, the MahaRERA portal had witnessed huge traffic as developers rushed to register their ongoing projects. The regulator had already stated that the deadline for registration of ongoing projects with the authority will not be extended. To prod realtors to expedite the process of registering their projects, the regulator has also announced that builders can make changes to their project documents from September.
“According to section 59(1) of the RERA Act, if the promoter allegedly contravenes the provision of Section 3 -it deals with registration, selling and marketing of new and ongoing projects -he will be liable to pay penalty up to 10% of the project's estimated cost as determined by the authority ,“ said Sudip Mullick, partner at Khaitan & Co. The regulator would have to determine the quantum of the penalty after taking into consideration the reasons that a promoter-developer puts forward for his non-compliance, said Mullick. Also, the authority will have to determine what the estimated cost of that project would be for applying the penalty.
Courtesy : ET
About 9,000 ongoing projects and 7,200 property brokers in the state had applied for registration with the authority.The number of applications for ongoing projects is likely to move closer to 10,000 by midnight when the deadline comes to an end, an official at the Authority said, referring to the proposed suo motu action.
According to developers, there are more than 20,000 ongoing realty projects across the state that had to be registered with the authority.
Although the pace of registration remained slow until last week, the momentum increased closer to the deadline of July 31. Over the last three days, the MahaRERA portal had witnessed huge traffic as developers rushed to register their ongoing projects. The regulator had already stated that the deadline for registration of ongoing projects with the authority will not be extended. To prod realtors to expedite the process of registering their projects, the regulator has also announced that builders can make changes to their project documents from September.
“According to section 59(1) of the RERA Act, if the promoter allegedly contravenes the provision of Section 3 -it deals with registration, selling and marketing of new and ongoing projects -he will be liable to pay penalty up to 10% of the project's estimated cost as determined by the authority ,“ said Sudip Mullick, partner at Khaitan & Co. The regulator would have to determine the quantum of the penalty after taking into consideration the reasons that a promoter-developer puts forward for his non-compliance, said Mullick. Also, the authority will have to determine what the estimated cost of that project would be for applying the penalty.
Courtesy : ET
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