DISCLOSURE IS THE KEY TO FAIR PRACTICES

In a candid conversation Ajoy Mehta, Chairman, MahaRERA shares insights with Sajana Nambiar on how the authority is bridging the gap between the developers and the buyers.

BY Sajana Nambiar
Published - Tuesday, 13 Aug, 2024

Earlier real estate disputes were dealt either through a civil court or a consumer court. RERA is now the specific authority to work around promoter-allottee relationship.

RERA has brought transparency in the sector through mandatory disclosures by the developers about the projects, so that the buyers can make informed decisions. RERA has given clear remedies in case of project delays and if there are any structural or other defects within 5 years of handover, to demand compensation. MahaRERA has also enforced standards for parking spaces and the builders are also required to specify all facilities and amenities provided in the building, common areas, or layout.

In addition, MahaRera provides free counselling for home buyers and developers and training and certification for real estate agents. The area that was falling short of regulation was the allottee-promoter relationship, for which RERA has come into existence.

What are the major loopholes that MahaRERA is addressing?

There have been instances of developers constructing more floors than approved or a senior living project that does not have the requisite facilities. MahaRERA has issued comprehensive guidelines for such scenarios.To address the misappropriation of buyer’s payments. Developers in Maharashtra are required to maintain RERA-designated collection accounts. A seperate account for 70 per cent of the funds allocated for land and construction, and the other transaction account for the remaining 30 per cent of the funds.

Should civic bodies too come under the purview of RERA?

Let us be very clear, the purpose of RERA is to regulate allotee-promoter relationship. RERA's purpose is not to regulate building construction. For that there are planning authorities that are specialized in planning and construction requirements as per the location of the project. The area that was falling short of regulation was the allottee -promoter relationship, for which RERA has established a close monitoring system for all real estate activities.

We have till now sent show cause notices to 19000+ developers for non-submission of statutory compliances, red flagged projects with more than 10 complaints and recovered over Rs 125 crore compensation in just 14 months.