Ma­haRERA may Take Suo Motu Ac­tion against Real­tors for Miss­ing Reg­is­tra­tion Dead­line

The Economic Times - - Careers: The Fast Track/companies - Kailash.Babar@ time­sagroup.com

Mumbai: The Ma­ha­rash­tra Real Es­tate Reg­u­la­tory Au­thor­ity (Ma­haRERA) is plan­ning to take suo motu ac­tion against prop­erty devel­op­ers whose on­go­ing projects have not been reg­is­tered with it­self even af­ter the July 31 dead­line.

Un­til 7:20 pm on Mon­day, about 9,000 on­go­ing projects and 7,200 prop­erty bro­kers in the state had ap­plied for reg­is­tra­tion with the au­thor­ity. The num­ber of ap­pli­ca­tions for on­go­ing projects is likely to move closer to 10,000 by mid­night when the dead­line comes to an end, an of­fi­cial at the Au­thor­ity said, re­fer­ring to the pro­posed suo motu ac­tion.

Ac­cord­ing to devel­op­ers, there are more than 20,000 on­go­ing realty projects across the state that had to be reg­is­tered with the au­thor­ity.

Although the pace of reg­is­tra­tion re­mained slow un­til last week, the mo­men­tum in­creased closer to the dead­line of July 31. Over the last three days, the Ma­haRERA por­tal had wit­nessed huge traf­fic as devel­op­ers rushed to reg­is­ter their on­go­ing projects. The reg­u­la­tor had al­ready stated that the dead­line for reg­is­tra­tion of on­go­ing projects with the au­thor­ity will not be ex­tended. To prod real­tors to ex­pe­dite the process of regis­ter­ing their projects, the reg­u­la­tor has also an­nounced that builders can make changes to their project doc­u­ments from Septem­ber.

“Ac­cord­ing to sec­tion 59(1) of the RERA Act, if the pro­moter al­legedly con­tra­venes the pro­vi­sion of Sec­tion 3 — it deals with reg­is­tra­tion, selling and mar­ket­ing of new and on­go­ing projects — he will be li­able to pay penalty up to 10% of the project’s es­ti­mated cost as de­ter­mined by the au­thor­ity,” said Sudip Mul­lick, part­ner at Khai­tan & Co. The reg­u­la­tor would have to de­ter­mine the quan­tum of the penalty af­ter tak­ing into con­sid­er­a­tion the rea­sons that a pro­moter-de­vel­oper puts for­ward for his non-com­pli­ance, said Mul­lick. Also, the au­thor­ity will have to de­ter­mine what the es­ti­mated cost of that project would be for ap­ply­ing the penalty.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.