MahaRERA Introduces New Guidelines for Promoters' Compliance in Real Estate Sector

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently implemented a series of new guidelines aimed at enhancing promoters' compliance in the real estate sector. In an effort to ensure transparency, protect the interests of buyers, and streamline processes, MahaRERA has issued a supplementary order outlining the procedure that promoters must follow when they encounter challenges in complying with previous directives.  

This article provides an in-depth analysis of the new guidelines, their implications for promoters, and the measures undertaken by MahaRERA to regulate the real estate industry effectively.

I. Background and Reference:

The supplementary order, numbered 40 A/2023, issued by MahaRERA, refers to the previous Order No. 40/2022 dated 27.12.2022 (Case No.: MahaRERA/Secy/File No. 27/853/2022). It establishes the framework for promoters to address non-compliance issues outlined in Order No. 7 of 2019, issued on 08.02.2019. The new guidelines provide clarity on the documents that promoters must submit when facing difficulties in meeting the requirements set forth in the aforementioned directives.

II. Documents Required for Compliance:

To ensure a smooth process for the extension of project validity, promoters must submit the following documents:

Consents from Allottees:

Promoters are required to submit consents from allottees in the prescribed Format-B, as per Circular No. 28 of 2021 dated 08.03.2021. These consents serve as evidence of the allottees' agreement to the extension and are crucial in processing the application for project validity extension.

Detailed Explanation and Efforts:

Promoters must provide a detailed explanation of the reasons why the required percentage of consents could not be obtained. Additionally, they should list the efforts made to obtain the necessary consents from allottees. This information helps MahaRERA assess the circumstances surrounding non-compliance.

Justification for Extension:

Promoters must articulate the reasons why the application for extension should be considered even in the absence of the required 51% consent from allottees. They should present a compelling case for the extension, taking into account the best interests of both the project and the allottees.

Delay in Project Completion:

An explanatory note, supported by relevant documents and a PERT (Program Evaluation and Review Technique) Chart or planning details, must outline the grounds and reasons for the delay in completing the real estate project. This information assists MahaRERA in evaluating the feasibility of granting an extension.

Complaints and Legal Proceedings:

Promoters must provide a comprehensive list of complaints filed before MahaRERA, as well as any courts, tribunals, forums, or the National Company Law Tribunal (NCLT). This includes relevant details and orders passed in these cases, enabling MahaRERA to gain insight into any ongoing legal disputes.

Notarized Declaration:

Promoters must submit a notarized declaration stating that the extension of project validity will not compromise the rights of the allottees who have booked properties within the project. This declaration also binds the promoter to any terms and conditions imposed by MahaRERA in the interest of the allottees.

Project Details Update:

Promoters are required to update the project details on the designated project webpage. This includes providing information such as recent sold/booked inventory, Form-1, Form-2, Form-2A, Form-3, Form-5, total booked units, task and activity updates, parking details, and Format-D. All updates must bear dated signatures on the letterhead of respective professionals and the promoter.

Conclusion:

MahaRERA's introduction of new guidelines for promoters' compliance in the real estate sector marks a significant step towards ensuring transparency and protecting the interests of buyers. By streamlining the process for extension of project validity, these guidelines provide clarity and a standardized framework for promoters facing compliance challenges.

The documentation requirements outlined in the supplementary order help MahaRERA evaluate extension requests more effectively, ultimately contributing to a more regulated and accountable real estate industry in Maharashtra.

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 Supplementary ordcr before the Maharashtra Real Estate Regulatory Authority

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