Not registered your project with MahaRERA so far? Do it now or face sever actions.
MahaRERA has been at the forefront in implementing RERA in the state and has taken a clear lead over other states which are yet to get control over their affairs for implementing RERA. The commendable efforts and proactive approach of MahaRERA have been recognized by the Central Government by allotting it additional charge of implementing RERA in two union territories viz. Daman & Due and Dadra & Nagar Haveli.
MahaRERA has established its credibility based on its astute execution capabilities evidenced by the speed with which it has developed its site as well as the manner in which it has taken prompt action against the ones failing to comply with its direction.
Three orders have been issued by MahaRERA so far demonstrating zero tolerance towards erring participants of Real Estate Market.
In its first order dated June 5, 2017, MahaRERA penalised a broker with a fine of Rs. 1,20,000/- for violation of section 10(a) and section 9(5) of the RERA Act r/w rule 14 Real Estate Project and Agent Registration.
In its second order dated August 3, 2017, MahaRERA took prompt action against developers, who missed out the deadline of registering their projects before July 31, 2017 and effectively violated section 3(1) of RERA Act. All such developers, who applied for registration of project after the deadline till August 2, 2017, were penalised with a fine amounting to Rs. 50000/-. Though the penalty was a token amount, the message from MahaRERA was absolutely clear, that it will not allow Real Estate Market Participants to take it casually. Also it has displayed an accommodative approach where those falling in line have been pardoned with a small penalty.
In its third order dated August 10, 2017, MahaRERA dealt with project registration applications received after August 2, 2017. The order is on similar lines and accepts the applications with an increased penalty of Rs. 1,00,000 or project registration fee, whichever is higher, even though it has authority to reject registration. It has also been considerate by allowing an extended deadline for application till 5:00 pm on August 16, 2017 by paying the stipulated penalty.
The above three orders make the intentions of MahaRERA very clear. It expects participants to comply with the new Act and Rules while clearly indicating that errant market participants will be taken to task strictly.
The possible actions against developers who fail to register their projects include penalty u/s 59(1) amounting to 10% of the estimated cost of project and may further increase to under 59(2) to additional 10% of the project cost along with imprisonment upto 3 years.
For those real estate developers who have missed out on the deadlines of project registration so far, it is only in their interest to register the projects at the earliest and possibly before 5:00 pm on August 16, 2017. In case if some developers are not able to meet the revised deadline this time as well, it will be prudent for them to register even after the deadline and hope that the actions will remain mild. In any case, non-registration of project will surely lead to dire consequences.
Housing for all being the goal of Central Government to be achieved by 2022, it will be imperative to implement RERA and with its wide and pervasive powers, MahaRERA is on its way to exercise complete control of affairs real estate markets in and implement RERA in its right perspective.
Article by CA. Ravi Vijay Ramaiya
B. Com, FCA, CISA (USA), DISA, DBM, DCL
He can be reached on rramaiya@secmark.in or 9869036804