MahaRERA to slap minimum Rs 1 lakh penalty for ongoing project registration delay
The Maharashtra Real Estate RegulatoryAuthority (MahaRERA) has decided to slap a minimum penalty of Rs 1 lakh or an amount equivalent of its registration fees, whichever is higher, for ongoing projects registration applications to be received between August 3 and August 16.
“Applications made for registration of ongoing projects after August 16 will be heard on case-to-case basis and the penalty will be decided by the authority. The builder then will have to explain as to why the application cannot be rejected,” said a top MahaRERA official.
The project registration fee ranges from minimum of Rs 50,000 to Rs 10 lakh depending on the size of the specific project.
This quantum of penalty will be applicable for all applications received in the office of MahaRERA until 5pm of 16 August.
“We have received 500 applications for registration of ongoing projects until August 2 and has so far received additional 500 such applications after that,” said the official. “We have decided to keep the ongoing projects’ registration process open as this will lead to maximum projects getting registered and make more information available to homebuyers.”
Until the midnight of July 31, the regulator had received total 10,852 applications for registration of ongoing projects across Maharashtra. The regulator had earlier decided to levy a fine of Rs 50,000 on applications received after the deadline of July 31 until August 2.
The government enacted the Real Estate (Regulation & Development) Act 2016 and all the sections of the Act have come into force with effect from May 1 this year. Maharashtra was one of the first states to notify its rules under the Act and establish MahaRERA.
The builders had to register their ongoing projects with their respective state RERAs within three months and deadline for the same was set at July 31. Without registering their ongoing projects, the developer is not allowed to undertake marketing or selling of their projects.
As the rules, 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.
“Applications made for registration of ongoing projects after August 16 will be heard on case-to-case basis and the penalty will be decided by the authority. The builder then will have to explain as to why the application cannot be rejected,” said a top MahaRERA official.
The project registration fee ranges from minimum of Rs 50,000 to Rs 10 lakh depending on the size of the specific project.
This quantum of penalty will be applicable for all applications received in the office of MahaRERA until 5pm of 16 August.
“We have received 500 applications for registration of ongoing projects until August 2 and has so far received additional 500 such applications after that,” said the official. “We have decided to keep the ongoing projects’ registration process open as this will lead to maximum projects getting registered and make more information available to homebuyers.”
Until the midnight of July 31, the regulator had received total 10,852 applications for registration of ongoing projects across Maharashtra. The regulator had earlier decided to levy a fine of Rs 50,000 on applications received after the deadline of July 31 until August 2.
The government enacted the Real Estate (Regulation & Development) Act 2016 and all the sections of the Act have come into force with effect from May 1 this year. Maharashtra was one of the first states to notify its rules under the Act and establish MahaRERA.
The builders had to register their ongoing projects with their respective state RERAs within three months and deadline for the same was set at July 31. Without registering their ongoing projects, the developer is not allowed to undertake marketing or selling of their projects.
As the rules, 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.
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