MahaRERA's Latest Directive: Proprietary Concerns Now Classified as Individuals for Fee Purposes

As the real estate market in Maharashtra continues to grow, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a new directive that has far-reaching implications for developers and builders.

The latest directive states that proprietary concerns will now be classified as individuals for fee purposes. This move is expected to have a significant impact on the real estate market in Maharashtra, and developers and builders are already grappling with the implications of this new directive.

What are proprietary concerns?

Proprietary concerns are businesses that are owned and run by a single individual. In the context of the real estate market, proprietary concerns are often used by developers and builders to avoid paying higher fees to the government. By registering their business as a proprietary concern, developers and builders could classify themselves as individuals and pay lower fees to the government. However, the latest directive from MahaRERA changes this.

What does the new directive say?

The new directive from MahaRERA states that proprietary concerns will now be classified as individuals for fee purposes. This means that developers and builders who have registered their businesses as proprietary concerns will now have to pay higher fees to the government. The new fee structure is based on the number of apartments or plots being developed, and the size of the project. Developers and builders will now have to pay a higher fee if they are developing larger projects.

Impact on the real estate market

The new directive from MahaRERA is expected to have a significant impact on the real estate market in Maharashtra. Developers and builders who have registered their businesses as proprietary concerns will now have to pay higher fees to the government, which could result in higher project costs. This could lead to an increase in property prices, which could make it more difficult for buyers to afford a home.

However, the new directive is also expected to bring more transparency to the real estate market. By classifying proprietary concerns as individuals for fee purposes, MahaRERA is ensuring that developers and builders are not able to avoid paying higher fees to the government. This will help to bring more transparency to the real estate market and ensure that developers and builders are held accountable for their actions.

What developers and builders are saying

Developers and builders in Maharashtra are already grappling with the implications of the new directive. While some have welcomed the move, others have expressed concern over the impact on their businesses. Many developers and builders have registered their businesses as proprietary concerns to avoid paying higher fees to the government. The new directive will require them to pay higher fees, which could impact their profitability.

Conclusion

The latest directive from MahaRERA is a significant development for the real estate market in Maharashtra. By classifying proprietary concerns as individuals for fee purposes, MahaRERA is bringing more transparency to the real estate market and ensuring that developers and builders are held accountable for their actions. While the new directive may result in higher project costs and property prices, it is a step towards a more transparent and accountable real estate market.

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.

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