Uttar Pradesh has adopted three important policy decisions by the Maharashtra Real Estate Regulatory Authority, or MahaRERA, including mandatory QR code for each real estate project’s information; mandatory training and certification for agents; option to deregister non-viable projects subject to conditions.
These are among a host of decisions the MahaRERA has taken the lead, which have a pro-homebuyer long-term impact on the real estate sector. As a result, there is higher transparency in Maharashtra’s real estate sector and also makes developers accountable for their decisions as well as actions. The successful outcome of homebuyers benefiting from the decisions has led other states to adopt MahaRERA’s policies.
The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has decided to implement three key policies of its Maharashtra counterpart. The mandatory display QR code along with all project advertisements has been in force in Maharashtra since August 1, 2023. MahaRERA tracks all advertisements across platforms, initiating punitive action against erring developers. Due to the QR code system, homebuyers get comprehensive project information in one click.
The third decision to come into force in UP is to cancel a project’s registration if it becomes unviable. The MahaRERA has allowed builders to deregister their projects subject to certain conditions that protects the rights of homebuyers and other investors. In case of a project becoming unfeasible or a change in plan due to regulations or legal disputes, construction comes to a standstill. Such a situation leaves homebuyers and investors in the lurch.
In the interest of all stakeholders, opportunity is given to a developer to deregister a project only after they have met certain criteria, including holding a hearing, as per a circular issued on February 10, 2023.
Apart from UP, other states have also shown their willingness to replicate MahaRERA initiatives – standardised agreement for sale, allotment letter, establishment of micro-control room for compliance with regulatory provisions, submission of promoter’s DIN number along with an affidavit detailing promoter’s previous performance as well as other directors involved in the project, appointment of a retired additional collector for compensation-related recovery warrants, grievance cell for homebuyers, reconciliation forum to resolve disputes between homebuyers and developers, suo motu penal action against projects printing ads without MahaRERA registration number and QR code,
‘MahaRERA Grading Matrix’ or grading of real estate projects from April, publication of consultation paper to maintain construction quality, guidelines for senior citizen housing among others.
