Real­tors Face a Min­i­mum .₹ 1-Lakh Penalty for De­lay

Fine ap­pli­ca­ble for re­quests re­ceived be­tween Au­gust 3 to Au­gust 16

The Economic Times - - Companies: Pursuit Of Profit - Kailash.Babar@ times­group.com

Mumbai: De­vel­op­ers in Ma­ha­rash­tra who missed two pre­vi­ous dead­lines for reg­is­ter­ing their on­go­ing projects will have to pay at least ₹ 1 lakh as penalty for de­lay­ing ap­pli­ca­tions.

The Ma­ha­rash­tra Real Es­tate Reg­u­la­tory Au­thor­ity (MahaRERA) has de­cided to slap ₹ 1 lakh or an amount equiv­a­lent to the reg­is­tra­tion fee, whichever is higher, as the penalty for ap­pli­ca­tions re­ceived be­tween Au­gust 3 and Au­gust 16.

The project reg­is­tra­tion fee ranges from ₹ 50,000 to ₹ 10 lakh, depend­ing on its size. The fine will be levied on all ap­pli­ca­tions re­ceived in the MahaRERA of­fice un­til 5 pm of Au­gust 16.

“Ap­pli­ca­tions made for reg­is­tra­tion of on­go­ing projects af­ter Au­gust 16 will be heard on case-to-case ba­sis and the penalty will be de­cided by the au­thor­ity. The builder then will have to ex­plain why the ap­pli­ca­tion can­not be rejected,” a top MahaRERA of­fi­cial said.

As of the July 31 dead­line, the reg­u­la­tor had re­ceived 10,852 ap­pli­ca­tions for reg­is­tra­tion of on­go­ing projects across the state. For

ap­pli­ca­tions re­ceived sub­se­quently, un­til Au­gust 2, a fine of ₹ 50,000 was im­posed.

“We have re­ceived 500 ap­pli­ca­tions for reg­is­tra­tion of on­go­ing projects un­til Au­gust 2 and re­ceived ad­di­tional 500 such ap­pli­ca­tions af­ter that,” said the of­fi­cial. “We have de­cided to keep the on­go­ing projects reg­is­tra­tion process open as this will lead to max­i­mum projects get­ting reg­is­tered and make more in­for­ma­tion avail­able to home­buy­ers.”

Ma­ha­rash­tra was one of the first

states to no­tify rules and es­tab­lish the MahaRERA af­ter all sec­tions of the Real Es­tate (Reg­u­la­tion & De­vel­op­ment) Act, 2016, came into force on May 1.

With­out reg­is­ter­ing on­go­ing projects, de­vel­op­ers can­not mar­ket or sell them. Vi­o­lat­ing pro­vi­sions of Sec­tion 3 that deals with reg­is­tra­tion, sell­ing and mar­ket­ing of new and on­go­ing projects will at­tract a penalty of up to 10% of the prop­erty’s es­ti­mated cost, as de­ter­mined by the au­thor­ity.

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