A detailed explanation of Maharera act

The position and working of the Real estate industry and its stakeholders became distressing in our country, the buyers of the property were the ones that were really under the grind. And consequently the authorities stepped in with a brand new law. The Real Estate (Regulation and Development) Act, 2016 has been in force since May 2017 with the key objective of regulating the real estate industry and improving its existing conditions. This provided that every state shall have their own RERA authority to look into real estate matters seriously.

MAHARERA- INTRODUCTION 

The Maharashtra authorities created the RERA in Maharashtra on March 8, 2017, Real Estate Regulatory Authority (hereinafter referred as ‘MahaRERA’) through The Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, Registration of real estate agents, rates of interest and disclosures on website) Rules, 2017 for the promotion and regulation of the Maharashtra real estate industry. MahaRERA, headquartered in Mumbai.

The MahaRERA has a mandate to register all real estate projects and agents. It aimed at extending safety to all customers, allottees, real estate agents and promoters involved in real estate transaction. It therefore facilitates dispute resolution through a properly laid dispute settlement mechanism. This regulation has allowed the required transparency in transactions involving sale of flats, plots and buildings. Besides the regulatory mechanism, it also advises and recommends appropriate government authorities in matters related to development and promotion of real estate. In conclusion, this regulation aims at development and upliftment of real estate sector in India.

FEATURES OF MAHARERA

1. Jurisdiction: MahaRERA deals with registrations related to the state of Maharashtra as well as the union territories of Dadra and Nagar Haveli, and Daman and Diu.
2. Website: MahaRERA also has an official website which is very user-friendly ( https://maharerait.mahaonline.gov.in/) and is easy to understand. It provides complete records of projects which have been registered. It facilitates homebuyers and property investors to have better information about their prospective transaction. 
3. Information related to projects: The homebuyers and investors can find information related to expected date of possession, credibility of brokers, etc. One of the most unique feature of the website is that it also provides information about the expected completion of the project so the homebuyers can apply for Home Loans.
4. Appropriate remedy in cases of delays and defaults in project: Under MahaRERA only projects registered are permitted to advertise. Delays in completion of projects are handled stringently; in case of delay in project completion, If the buyers do not want to withdraw from the project, the builders will be required to compensate the buyers by way of refunding the deposited money along with interest at the stipulated rate for every month of delay till the developer hands over the property to the allottee.
5. Volume of grievance handling: Up to 23 September 2019, the regulatory authority received 8,968 complaints; of these, 8,351 complaints were against registered projects and 617 complaints were against unregistered projects. 5,355 orders have been passed against registered projects and 351 orders have been passed against unregistered projects.

BENEFITS OF MAHARERA

1. Transparency: There was a surpressing hue and cry rampant amongst the buyers in real estate projects and they were left to mercy of the developer to obtain the possession. But, with the introduction of RERA, with the advent of compulsory registration all the information related to the project is to be submitted and the information is at all times accessible by the buyers. Additionally, buyers have the right to question each step involved in both development and promotion.
2. Compliance with regulation and order: MahaRERA has fixed down payment to 10% and has thus finished the scope for developers to funnel funds collected from buyers and redirect them to some other projects. Non-compliance of there provisions attracts penal action of imprisonment up to 3 years and penalty.
3. Accountability: MahaRERA has mandated Developers to deposit 70% of all funds paid towards a particular project into a single account. These funds are to be used only for construction or acquisition of land or any other associated costs. Developers must also report progress along with the associated expenses made periodically on the project to the regulatory authorities.
4. Reinvented trust in buyers: The most important benefit is that buyers have now reinforced trust in the real estate sector. This has led to reinvigoration of the sector and greater confidence among property buyers.

APPLICATON OF REGISTRATION PROCESS

The Act applied to all commercial as well as residential real estate, which also includes plotted development.

All the commercial and residential projects exceeding 500 square meters or above eight units/apartments have to register under RERA. 

Every on-going project that hasn’t obtained completion certificates is also required to get registration under RERA with the Regulator within three months.

Real estate agents facilitating purchase and selling of properties are required to obtain prior RERA registration.

MAHA RERA REGISTRATION PROCESS

The Real Estate Act has mandated that every commercial and residential real estate project to register with the RERA. And thus, accordingly even in Maharashtra, registration under MahaRERA is compulsory for each and every residential and commercial project. Real estate builders are not permitted to advertise, book or sell any real estate without registration.

The regulating body in Maharashtra has provided an easy process to register their RERA. The registration is allowed through their Online Portal which makes the process both effective and efficient. 

The steps to register RERA under MAHA regime is explained as follows:

Step 1: Visit Rera Maharashtra Official Website. 

Step 2: Click on ‘New Registration’ to create a new user. 

Step 3: User will be directed to a new window, wherein user have to select ‘User Type’

NOTE: User type categories are

• Promoter
• Real estate agent
• Citizen

Step 4: The user is required to enter all the required information based on your user type selection. 

Step 5: The user can login into their account once the user has verified their email ID. 

DOCUMENTS REQUIIRED FOR REGISTRATION
Along with the sign up, certain documents shall be required. The documents differ on the user type. 

The promoters or builders are required to submit the following documents:

• PAN Card of the promoter;
• Particulars of Registration including bye-laws;
• Memorandum and Articles of Association;
• Self-certified copies of all letterheads;
• Declaration or Income Tax Returns details of the last three years;
• Self-certified copy of letterhead rubber stamp;
• Acknowledgment receipts to be used by the real estate agent;
• Promoter’s audited balance sheet for the preceding financial year;
• In case the promoter isn’t the landowner on which the project development is proposed, then Consent from the owner of the land is mandatory along with Development agreement, Joint development agreement, Collaboration agreement or any other agreement between the promoter and owner.
• Name, address, contact details, and a photograph of the promoter/director/partners/chairman or any other authorized person if there’s any other entity;
• Details of Architecture and design standards, type of technology used in construction, earthquake-resistant measures, etc.
• Layout plan of the real estate project;
• Details regarding the encumbrances regarding the proposed land where the real estate project needs to be undertaken;
• Details about the proceedings that are sub-judice in respect of the proposed land for real estate project (if any).
• Information related to the proposed plan, sanctioned plan, floor space index, layout plan, etc.

The applicant seeking RERA registration in Maharashtra as a real estate agent, then the person needs to submit the following documents:

• Details of registrations acquired under other laws and rules & regulations, as the case may be;
• Memorandum and Articles of Association (AoA), Partnership Deeds, etc.
• Particulars of the agent’s enterprise registered address of the business, PAN, Registration numbers, DIN, Aadhaar card number, etc. under which returns are filed with the statutory authority;
• Agent’s recent color photographs, 
• Details of Income Tax Returns for the last three fiscal years preceding the application;
• In case the applicant is exempted from filing such returns in any of the three years, the entity must submit the declaration to such effect;
• Particulars of all criminal or civil cases pending against the agent;
• Details regarding the real estate projects and their promoters (if any) on behalf of whose the applicant is acting as a real estate agent in the preceding five years;
• Authenticated copies of all rubber stamp images, letterheads, and acknowledgment receipts proposed that real estate agent would be using;
• Other such documents and information, as may be specified by regulations.

LEGALITIES TO FILE A BUILDER DISPUTE CASE IN MAHARASHTRA

Section 31 of the Act and Rule 6 of Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017 provide for filing of complaint with MahaRERA, by an aggrieved person who has any interest in the registered project. 

The aggrieved person can file an application online as per format provided by Maha RERA, A step-by-step guide to filing a complaint under RERA:

Step 1 – To file a complaint with the Authority, the complainant needs to visit the State’s official website. On the portal, search for the page of Complaint Registration. 

Step 2 – Click on the complaint registration link. You will be taken to the complaint form where you are required to fill the details of the complaint.

Step 3 – While filing the complaint, homebuyers would be asked to submit their personal details including Name, Address, Contact details, and Project details. Complainants can also attach supporting documents.

Step 4 – Once the form is fully filled, the complainant would need to pay a sum of Rs 1,000 for filing the complaint or Rs 5,000 in case the complaint is filed before the Adjudicating Officer. Online payment mode is also available for completing the transaction

The complainant must provide:

• The particulars of the applicant and the respondent.
• The registration number and address of the project.
• A concise statement of facts and grounds of claim.
• The reliefs and interim reliefs, if any, sought.
• List of Enclosures and etc.

As per Regulation 24 of Maharashtra Real Estate Regulatory Authority (General) Regulations 2017, for adjudication proceedings with respect to complaints filed, MahaRERA may, by order, direct that specific matters or issues be heard and decided by a single bench of either the Chairperson or any Member of the Authority

Further Section 29 of the Act provides that complaints should be disposed off as expeditiously as possible but not later than sixty days from the date of filing the same. However, where it cannot be disposed of during the said period, the Real Estate Regulatory Authority is required to record its reasons for the same. The Limitation Act also applies to the proceedings

ALTERNATE FORUMS FOR DISPUTE RESOLUTION 

The Act under section 79 of the Act, bars civil courts from entertaining disputes (in respect of matters which Real Estate Regulatory Authority or the adjudicating officer or the Appellate Tribunal is empowered under the Act to determine. 

The Regulation and the act however, allows the aggrieved person to file a complaint with the consumer forums (National, State or District) and their jurisdiction over such cased have not been barred from the ambit of the Act. 

However if the aggrieved chooses to move from Consumer forum to Regulatory Authority unde the RERA Act then Section 71 proviso permits the complainant to withdraw his complaint as regards matters under section 12, 14, 18 and section 19, from the consumer forum and file it with the adjudicating officer appointed under the Act.

ALTERNATE DISPUTE REDRESSAL MECHANISM

Section 32 (g) of the Real Estate (Regulation and Development) Act, 2016 provides that the State Real Estate Regulatory Authority must take measures to facilitate amicable conciliation of disputes between promoters and the allottees through dispute settlement forums set up by the consumer or promoter associations.

With this objective and direction, the under the MahaRERA, MahaRERA Conciliation and Dispute Resolution Forum has been formed to facilitate resolution of disputes amicably, thereby saving cost and time of litigation to parties and State. However only Disputes between promoters and allottees which are under purview of the Act, Rules and Regulations shall be admissible by the Forum.

This Forum consists representatives of Mumbai Grahak Panchayat, a leading Consumer body and the promoters’ association representatives from CREDAI, MCHI, CREDAI-Pune Metro & NARECO, 

The forum aims at constituting panel of eminent Conciliators representing consumers’ association and promoters’ associations and promoting and popularizing amicable and effective settlement of disputes arising with reference to Real Estate (Resolution and Development) Act, 2016, under various Alternate Dispute Resolution mechanism.

For your real estate related queries, reach out to Ricky Chopra International Counsels who is a Law Firm with Real estate practice in Maharashtra with their office in Mumbai.