MAHARERA

Unit - 3
Maharashtra Real Estate
Regulatory Authority
(MahaRERA)
Topics Covered
Key Pillars of MahaRERA

01 Accountability

02 Financial Discipline

03 Transparency

04 Customer Centricity

05 Compliance
 Maharashtra Real Estate Regulatory Authority

Government of Maharashtra established Maharashtra Real Estate Regulatory Authority

(MahaRERA), vide Notification No. 23 dated 8 March 2017, for regulation and promotion of real
estate sector in the State. Subsequently, MahaRERA was also made the regulatory authority for
Daman & Diu and Dadra Nagar Haveli.
Government of Maharashtra further promulgated the following rules detailing the functioning of
Authority:

• Maharashtra Real Estate (Registration of Real Estate Projects, Registration of Real Estate
Agents, Rates of Interest and Disclosures on Website) Rules, 2017

• Maharashtra Real Estate Regulatory Authority, Chairperson, Members, Officers and Other
Employees (Appointment and Service Conditions) Rules, 2017

• Maharashtra Real Estate (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of
Complaints and Appeal, etc.) Rules, 2017

• Maharashtra Real Estate Appellate Tribunal, (Members, Officers and Employees) (Appointment
and Service Conditions) Rules, 2017

• Maharashtra Real Estate Regulatory Authority (Form of Annual Statement of Accounts and
Annual Report) Rules, 2017
 Maharashtra Real Estate Regulatory Authority (Contd…)

Over the past years, Few Amendments have been notified for the aforementioned
rules. All these rules with the concerned amendments are available on MahaRERA
website.

MahaRERA has notified the following regulations:

• Maharashtra Real Estate Regulatory Authority (General) Regulations 2017

• Maharashtra Real Estate Regulatory Authority (Recruitment and Conditions of

Service of Employees) Regulations, 2017

• Maharashtra Real Estate Appellate Tribunal Regulations, 2019

Similarly, few amendments have been undertaken to the above mentioned regulations
and they are available on MahaRERA website.
 Introduction to Real Estate (Regulation and
Development) Act 2016 (RERA)

MahaRERA aims to transform the Real

Estate Sector, leading it into an era of
greater transparency and professionalism,
wherein all stakeholders’ interests are
protected and trust and confidence is
established. MahaRERA endeavours to
implement the Act in its letter and spirit,
promoting transparency, accountability,
financial discipline, customer centricity
and compliance.

The above mentioned 5 traits of MahaRERA

functioning, now form the pillars for
completing MahaRERA registered projects
and bridging the trust gap between the home
buyers and the developers that had become
the unfortunate legacy of the sector..
A. Transparency
MahaRERA ensures that maximum information
is available for public view at its website including Information on Registered Projects,
Registered
Agents, Judgements, Orders etc.

Details of all the Registered Projects are available online for citizens including:
• Sanctioned plans, layout plans, along with specifications, approved by the competent
authority
• Proposed plan, proposed layout plan of the whole project and floor space index proposed to
be consumed in the whole project, as proposed by the promoter
• Proposed number of building(s) or wing(s) to be constructed and sanctioned number of the
Building(s) or wing(s).
• The stage wise time schedule of completion of the project, including the provisions for civic
Infrastructure like water, sanitation and electricity.
• Quarterly update of the list of number and types of apartments or plots, as the case may be,
Booked
• Quarterly update of the list of number of covered parking as well as list of number of garages
for sale;
• Quarterly update of the list of approvals taken and the approvals which are pending
subsequent to commencement certificate, quarterly update of the status of the project; and
such other information and documents as may be specified by the regulations made by
maharera.
A. Transparency (Contd…)
• The advertisement or prospectus issued or published by the promoter shall mention
prominently
• The website address of MahaRERA, wherein all details of the registered project have been
entered and include the registration number obtained from the Authority
• The developer has to obtain consent of at least 2/3rd allottees for any major addition or
alteration
• The developer cannot undertake cancellation of units in an arbitrary manner
• The developer has to deliver the project as per pre-defined time frame
• The developer cannot put out any advertisement of the project before registration with
MahaRERA
• The developer has to obtain consent of at least 2/3rd allottees before transferring majority
rights to any 3rd party
• The developer has to clearly define the number, type and carpet area of the apartment
 B. Accountability
Perhaps the greatest benefit that customers have is the reinforced trust in the real estate sector due
to enforceability of accountability by the act. The act clearly details the roles of responsibilities of
each of the stakeholders including promoters, allottees and agents and holds them accountable
for contravention. In case of any unethical business practices by the developer:

• Every officer of the company,

who was in charge or was
responsible will be liable for
the conduct of the company
and deemed to be guilty

• Offence by an officer committed

with the consent or connivance
of any director, manager,
secretary or other officer of the
company, will also be guilty.
 C. Financial Discipline:
The act has introduced various pioneering initiatives for preventing funds diversion and ensuring audit of each project.
Some of its provisions are as follows:

A promoter shall not accept more than 10% 70% of the amounts realized for the real Withdrawal from such accounts shall
of the cost of the apartment, plot, or estate project from the allottees, from be in proportion to the percentage of
building as the case may be, as an advance time to time, shall be deposited in a completion of the project, which
payment or an application fee, from a separate account to be maintained in a shall be certified by an engineer, an
person without first entering into a written scheduled bank to cover the cost of architect, and a chartered
agreement for sale with such person and construction and the land cost and shall accountant in practice.
register the said agreement for sale be used only for that purpose

Project Accounts to be Audited / Provision for MahaRERA Provision for stronger Promoter to compensate
FY. Copy to be submitted to to freeze project bank financial penalties for buyer for any false or
MahaRERA account upon non- MahaRERA non- incorrect statement with a
compliance compliances full refund of property cost
with interest
D. Customer
Promoter cannot make any additions and Promoter to enable formation of Legal Entity like
Centricity alterations in the sanctioned plans, layout Cooperative Society, Company, Association,
plans and specifications and the nature of Federation etc. within three months from the date
fixtures, fittings and amenities etc. without on which 51 per cent of the total number of allottees
One of the key pillars of in such a building or a wing, have booked their
the previous consent of at least two-thirds
the new regime is apartment.
protecting the interests of the allottees, other than the promoter,
of allottees. MahaRERA who have agreed to take apartments in
aims at protecting the such building.
interests as well as
establishing trust and Citizens shall be able to view, on MahaRERA website,
confidence between all all disclosures pertaining to registered
stakeholders of real projects. This shall enable data driven informed
estate sector. If the promoter fails to complete or is decision making.
MahaRERA has brought unable to give possession of an apartment,
focus to the treatment of plot or building, in accordance with the
the allottees in a fair and terms of the agreement for sale, he shall
timely manner. be liable to pay interest for every month of
delay. Further, in case the allottee wishes
to withdraw from the project, without Promoter shall execute a registered conveyance deed
prejudice to any other remedy available, to in favour of the allottee within three
return the amount received by him with months from date of issue of occupancy certificate.
interest
 E. Compliance
• All Basic Approvals are in place before • Annual audit of project accounts by a
RERA Registration and these approvals Chartered Accountant
are in a public forum
• Conveyance deed for common areas in
• Registration of agents/brokers with the favor of Association of allottees
RERA portal
• Separate registration of different phases of
• Project registration with RERA on the a single project
portal
• Mandatory registration of new and existing
• Maximum One (1)year extension in case projects with RERA before launch
of delay in Real Estate projects
• Authenticated copy of all approvals, to be
• Speedy Dispute resolution at RERA and given when applying for project registration
Appellate Tribunal with RERA commencement certificate,
sanctioned plan, layout plan, specification
• Developers to share details of projects
launched in the last 5 years with status • Plan of development work, proposed
and reason for the delay with RERA facilities, proforma allotment letter,
agreement for sale, and conveyance deed
Thank you