Exclusion of Real Estate Projects from MahaRERA: A Detailed Overview

The Maharashtra Real Estate Regulatory Authority (MahaRERA) plays a crucial role in regulating the real estate sector in Maharashtra, India. In a recent development, MahaRERA issued Circular No. 25A/2023, addressing the exclusion of certain real estate projects from the requirement of MahaRERA Project Registration. This article provides an in-depth analysis of the circular, its background, and its implications for developers and homebuyers.

Background:

The circular references Circular No. 25/2019, issued on 11-10-2019, which provided classification regarding the registration of Agreement for Sale/Sale Deed for Real Estate Projects. It addressed the difficulties faced by homebuyers, allottees, and developers in registering such agreements. However, despite the issuance of the previous circular, promoters faced challenges while registering Agreement for Sale/Sale Deed and obtaining bank finance for projects falling under Serial Nos. 1 and 2.

The Case:

The circular refers to the majority judgment of the Maharashtra Real Estate Appellate Tribunal (MahaREAT) in the case of M/s. Geetanjali Aman Construction & Anr V/s Hrishikesh Ramesh Paranjpe & Ors. The judgment, dated 10.07.2019, set aside the order passed by the Authority in Complaint Nos. SC10000672 and SC10000691. The tribunal's ruling played a significant role in interpreting the provisions of the Real Estate (Regulation and Development) Act, 2016 (the Act).

Implications of the Circular:

To provide clarity and address the issues faced by promoters, MahaRERA issued Circular No. 25A/2023. The circular revisits Serial Nos. 1 and 2 of Circular No. 25/2019 and provides further clarification on their interpretation. The following are the key points highlighted in the circular:

Real Estate Projects with Small Land Area:

Projects where the area of land proposed to be developed is less than or equal to five hundred square meters are exempt from MahaRERA Project Registration. This exemption applies regardless of the number of apartments or units proposed to be developed.

Real Estate Projects with Few Apartments:

Projects where the number of apartments/units proposed to be developed is less than or equal to eight, inclusive of all phases, do not require MahaRERA Project Registration. The land area proposed for development is not a determining factor in this case.

Voluntary Registration:

Although the circular exempts projects falling under the mentioned categories, promoters have the option to voluntarily register their projects with MahaRERA, even if they meet the exemption criteria. This allows them to provide additional credibility and assurance to potential homebuyers.

Conclusion:

Circular No. 25A/2023 issued by MahaRERA offers much-needed clarity regarding the exclusion of certain real estate projects from the requirement of MahaRERA Project Registration. By revisiting Serial Nos. 1 and 2 of the previous circular, the authorities have addressed the challenges faced by promoters. The clarification allows developers to understand the scope of exemption and make informed decisions regarding project registration. Homebuyers, on the other hand, can benefit from increased transparency and credibility in the real estate sector.

Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the case number N{ahaRERA/Secy /F:leNo.27 /1rg /2023 before the Maharashtra Real Estate Regulatory Authority

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