RERA – Real Estate (Regulation & Development) Act
For Promoters (Developers / Builders) / Project
The governing authority - MahaRERA (Maharashtra Real Estate Regulatory Authority) has developed a web-portal ‘maharera.mahaonilne.gov.in’ and all new / ongoing Projects and intended Real Estate Agents have to registered online through this portal.
It is essential to understand that there is no registration of any Promoter (Developer), instead it is registration of their Project, in which the Promoter intends to sell the Units (Flat/Shop etc.) and the Occupation Certificate of such project has not been obtained. The details about the Promoter such as name, photograph, contact details and address of the promoter being organisation, proprietor, partners, directors, as the case may be, etc. are made available for public view.
Registration of a project becomes mandatory, once the ‘Sale’ component in any form is involved, may it be in form of allotment to investor, advertising, marketing including sms and emails, booking, selling or inviting person/s to purchase in any manner any plot, apartment or building, as the case may be.
There are basically two criterions to register a project, a) if the land / plot area is more than Five hundred sq. mtrs., and/or b) if there are more than eight units (Flat / Shop etc.) for Sale by the Promoter.
While making online application, the Promoter has to provide in-depth details under approximately 12-13 subjective headings and upload altogether 15-16 types of documents, out of which only 9-10 are made visible for public. The certificates pertaining to the project (Form No. 1 to 5), issued by professionals like Architect, Engineer, Practicing Chartered Accountant and Statutory auditor, are for internal records of the authority to be updated and scrutinised periodically, till completion of the project.
At the time of uploading the application for registration of a project, the Promoter has to pay a registration fee, calculated on the area of the land proposed to be developed at the rate of Rupees Ten per square meter, subject to a minimum of Rupees Fifty thousand only and a maximum of Rupees Ten lakhs and such registration fees should be paid through NEFT or RTGS System or any other digital transaction mode only.
The basic purpose of the certification from the qualified professionals, is to reduce the possibilities of failure of the project, which may occur by diversion of the funds, that are collected from the allottees (the Buyers), to complete the construction of relevant project. Considering the provisions and rules as set out by MahaRERA, the promoter has to open a specified / designated bank account to deposit and withdraw the sales consideration of the project. The summary of the financial working, based on certified figures of all professionals, is intended for earliest completion of the project.
The promoter can withdraw the funds from the designated bank account in consideration of proportion of the estimated cost of the project, incurred cost and the receivables from sold and unsold inventories, which may be either 100% or 70% of total sales receipts. The authority have redefined the terms of carpet area, sale of covered parking, payment schedule and other terms of Agreement for Sale etc.
Under the provisions of RERA, the Promoter has also got right to approach to the MahaRERA authority, against any/all errant allottee/s.