In an interesting development, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered that any complaint by home buyers with regards to incomplete work after taking possession of their residential apartments will not be entertained. This is expected to impact lakhs of home buyers given the prevailing practice of taking possession of apartments even prior to the developer receiving the Occupancy Certificate for the project.
MahaRERA, while disposing off a complaint by members of Pune’s Balaji Infinity Society against a builder Anuj Developer, has held that their plea cannot be entertained as home buyers have already taken possession of their apartments. “Since the complainants have already taken possession of their respective apartments, the complaint pertaining to incomplete works in their apartment cannot be entertained,” MahaRERA chairperson Gautam Chatterjee said in the order.
For the first time, the Maharashtra Real Estate Appellate Tribunal has recommended action against a senior architect under the RERA Act for misleading the BMC to get an occupation certificate (OC) for an ‘incomplete’ building at Borivli. Architect ManojDubal, former president of Practicing Engineers Architects & Town Planners Association (PEATA), allegedly submitted a certificate to the BMC stating the building work of Gundecha Trillium near Thakur Village has been completed as per the BMC-approved plan in November 2017. Surprisingly, based on his certificate, the BMC issued an OC.
The tribunal found his claims were false and a lot of work remained. It subsequently recommended action. Dubal said, “I was not given an opportunity to explain my stance before the order was passed.” Architect association members reacted strongly, stating four BMC officials inspected the building after Dubal submitted his certificate and they had given their approval to it along with the chief fire officer after which the BMC issued OC. Senior architect Shirish Sukhatme of PEATA said, “BMC officials as well as BMC approved consultant have given approval. Despite this, the Appellate Tribunal passed the order against the architect without providing him an opportunity to explain his case.”
Soon, Real estate projects in Maharashtra will be mapped on the Geographical Information System (GIS). As the Maharashtra Real Estate Regulatory Authority (MahaRERA) completes one year, it is in the process of developing a new feature on its website where all registered projects will be mapped onto the system. While CM Devendra Fadnavis had last year announced that real estate projects would be mapped on GIS, the project is finally taking off now. Once operational, the feature will allow prospective buyers to look at projects available in their area of interest, the details of the projects as well as social amenities in the vicinity.
Since the RERA had come into force, the Act has made it mandatory for new and ongoing projects to register with the regulatory body, leading to the creation of a database of projects. Currently, around 15,900 projects are registered on the MahaRERA website. While the database has helped streamline the real estate industry, the new GIS-enabled platform is expected to further organize the sector. “We are using technology to make it more seamless for home buyers to find the right home of their choice. The projects will appear as pins on the map and buyers can filter through the options easily,” said Gautam Chatterjee, Chairperson of MahaRERA.
Of the 16,300 projects registered with MahaRERA, over 13,000 are ongoing projects. Also, in this one year, 1,800 projects have been completed. On its first anniversary, MahaRERA has assured developers and home buyers to further reduce registration and dispute-redressal time to expedite the processes.
Addressing the gathering of developers, bankers and consumer representatives, Hardeep Singh Puri, Union Minister of State (Independent Charge) for Housing and Urban Poverty Alleviation, lauded the efforts of MahaRERA and its chief in putting in place a robust system and ensuring compliance through different methods. He also asked the developer community to accept the new reality.The Minister, a former diplomat, said there is a ‘crying need for attention’ because of the way this sector has been functioning over the last 70 years.RERA would ensure accountability towards allot tees and their interests will be protected. It will ensure fair play, infuse transparency and reduce frauds. It aims to increase professionalism and pan-India standardization, along with establishing symmetry of information between the promoter and the allot tees.
In a first, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued recovery warrants against 12 real estate developers. These warrants have been issued by the authority after the complainant home buyers approached MahaRERA on several occasions asking for execution of earlier orders against these builders directing refund of money.In the first instance of these warrants, the refund order was passed against Kambar Construction in November 2017. The amount is around Rs 37 lakh and an interest of 10.15% thereon.
Under the warrant, the district collector of Thane will attach the property and if the developer still does not pay the money then auction process will be initiated.
With the Maharashtra Real Estate Regulatory Authority (MahaRERA) in force, approximately 10-15 %of real estate brokers seem to have quit the sector.
The reasons — only registered brokers can sell MahaRERA registered projects; massive slowdown in the realty market; and overriding sentiments that there are no provisions in MahaRERA to protect therights of the brokers even though they are made liable for penal action.
According to the Confederation of Real Estate Brokers Association of India (CREBAI), MahaRERA has brought into place a form of regulation of the brokers dealing with real estate. We are seeing many of the unscrupulous brokers quitting the sector ever since MahaRERA has come to force.
MahaRERA has mandated that any broker who wants to sell apartments in a registered project needsto be registered with the real estate authority. Any builder who registers his project has to disclose the list of his brokers and they in turn need to be registered with MahaRERA.
The Maharashtra Real Estate Regulatory Authority (RERA) has been in the news for all the right reasons. In what is being looked at as a landmark judgment, the body has ordered JVPD Properties Private Limited to refund Rs 7.10 crore along with 15% interest to 21 aggrieved home-buyers. While many awards to affected home-buyers have been passed before, this order is unique as it potentially blocks a major loophole in the real estate regulations. This case pertains to 21 individuals who bought homes with Bhagtani (Director with JVPD Developer) in Mumbai’s suburb, Powai, from 2013-2015.
While the payment schedule for projects under development is clearly laid down, in this case, the 21 complainants had paid up almost 50% of the total amount from 2013 onwards on false assurances.In 2017, the developer sent out a letter to all their clients stating that they were unable to receive approvals for the projects and therefore they should either collect their money or have it transferred to another development.The group of aggrieved home-buyers made several trips to the developer’s offices, but it led to nothing concrete.One of the arguments put forth by the developers was that the home-buyers were all investors in the project and therefore RERA would have no jurisdiction in the matter.The non-signing of the agreement for sale also posed a challenge.The developer also kept saying that while the approvals had not come through, the intent of the developer was clear and they wanted to build the property, as assured to the home-buyers.
The RERA, in this case, also penalised the developer by levying a fine of Rs 30,000 against them towards costs. Furthermore, the court also put a charge on the developer’s properties until such time that he repaid all the 21 home-buyers, with interest.
One of the reasons that this order is significant is because of its view on allotment letters. Until now, even the Apex Court looked at allotment letters as a sub-standard document, but it changes substantially in favour of home-buyers with this order. The real estate sector is one of the most complicated sectors in the world. To expect a home-buyer to be on top of things is not possible. What the RERA has done is to make the process simple; every developer has to register his project online mandatorily and with that, display the details of all approvals, title certificates, layout plans, and mortgages details, for a potential buyer to verify.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has asked realty developer ShethInfraworld to waive off the balance 5% consideration to be recovered from a homebuyer against delay in delivery of an apartment. Even after paying 95% of the consideration a homebuyer is yet to receive the possession of her flat in the developer’s project Sheth Midori in Borivali, Mumbai.
The Maharashtra Real Estate Regulatory Authority (Maha-RERA), for the first time, imposed fines on seven developers for advertising their housing projects without mentioning the MahaRERA website and registration numbers as per norms. On a complaint filed by the Mumbai Grahak Panchayat, a fine of Rs 2 lakh each was imposed on – Goodtimes, Rikki Ronie, Ashar Realtors, Puraniks, Lashkaria Housing Sandeep Landge and Kabra& Associates. Kabra& Associates were fined an additional penalty of Rs 10 lakh for falsely advertising that the registration process for its Juhu Chandan project was on when the project was not registered with MahaRERA.
“Advertising unregistered real estate projects, and advertising them along with registered projects is a violation of section 3 of RERA. Similarly, not displaying MahaRERA online portal address as well as only mentioning MahaRERA registered without mentioning the registration number are both violations,” said Shirish Deshpande, president, Mumbai Grahak Panchayat (MGP) He said MGP activists monitored advertisements in newspapers, websites of promoters, and also collected promotional material displayed at property exhibitions. “Our volunteers found several unregistered projects being openly advertised, marketed and sold in brazen violation of Section 3 of RERA. We have submitted a list of 31 such ads to MahaRERA chairperson today,” he said.
Since its inception, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has penalised developers of 1,716 projects, with amounts ranging between Rs 50,000 and Rs 10 lakh, for delay in registering with the authority. This has helped it to earn over Rs 18 crore revenue only through fines. As per the RERA Act, it's compulsory to register ongoing projects with the authority within 90 days, failing to which it restricts the sale of ready houses.
The authority came into existence on May 1 last year and has registered over 13,000 projects across the state. There are over 10,000 brokers registered with it, as mandated by the RERA Act. The regular fee charged to developers is Rs 10 per sqm, with Rs 10 lakh being the maximum amount charged as registration fee. Brokers, on the other hand, have to shell out Rs10,000 for registering with RERA. While those delaying in registration were charged between Rs 50,000 and Rs 10 lakh as penalty, the authority can also fine developers 10% of the total project cost.
One of the four squabbling promoters takes over Tanvi Eminence project in Mira Road; to offer possession by December 31, 2019.
In a landmark order , the Maharashtra Real Estate Regulatory Authority (MahaRERA) has succeeded in negotiating a settlement between the developer and home buyers of Tanvi Eminence housing project in Mira Road, stalled since 2013 because of a squabble between the four promoters. The project now has a completion deadline of end-2019.
This is the first time anywhere in India that a RERA regulatory authority has played an active role in putting a housing project, stalled four years before the RERA Act came into effect, back on track, giving relief to hapless home buyers.
MahaRERA chairperson Gautam Chatterjee took the initiative and personally held deliberations over the last three months to make sure that one of the four bickering promoters took up the responsibility of funding, construction and completion of Phases I and II of the project, which began in 2009, but has been stalled since 2013.
Mumbai Mirror had first reported in October 2017 that over 500 home buyers were waiting for their homes in Tanvi Eminence after differences emerged between the four project promoters, who included two diamond merchants, in Kashimira Ceramic Products LLP (KCPL).
In November, a group of 181 home buyers formed a welfare association and collectively approached MahaRERA for relief. In December, under Chatterjee’s supervision, diamond merchant Dahyabhai Sutaria agreed to take charge of the project, and the other promoters agreed to transfer 33 per cent of their share to Sutaria and exit KCPL. However, talks between the promoters broke down again. Chatterjee again returned them to the negotiating table, and hammered out asolution with the consent of all stakeholders.
According to the settlement, Sutaria will hold 99 per cent ownership of KCPL, with new partner Dhaval Darji holding 1per cent, so that the same Limited Liability Partnership firm can execute the project. They will complete five wings of the 18-storey buildings in Phase I, and three buildings of 11-storeys in Phase II, and deliver possession to 181 home buyers by December 31, 2019, with a further grace period of three months.
According to the consent terms signed between the two promoters and the 181-members of the Tanvi Eminence Owners Welfare Association, the cost of the flats allotted to home buyers will not be increased, except 4.5 per cent GST on flat cost. The promoters will charge Rs four lakh towards parking for those not allotted parking, and the allotment rights for car parking will remain exclusively with KCPL, even after a co-operative housing society is formed by the home buyers. The promoters will also execute agreements of sale with those buyers who don’t have one within 90 days.
In return, the home buyers will withdraw all complaints and FIRs filed against KCPL with the police and any other authorities. “The promoters will be entitled to purchase the Transfer of Development Rights as per their requirement to complete the project. If they get additional Floor Space Index from the Mira-Bhayander Municipal Corporation, they will be free to construct additional floors in Phase II and sell those flats at current market prices,” said Rajesh Mhatre, secretary of the Tanvi Eminence Owners Welfare Association.
Mumbai: A complainant who approached MahaRERA (Maharashtra Real Estate Regulatory Authority) with a complaint pertaining to unreasonable possession date, got a relief after the bench ordered the developer to prepone the possession date of the project by four years. The RERA bench ordered for preponement of the possession date of the project from 2024 to 2020, failing which the developer would be liable to pay the interest rate till the actual date of possession.
The complainant ShreeramChaurasia approached the RERA bench with the complaint against developer NHK Developers LLP. Chaurasia had purchased an apartment in the project named ‘Vastukalp Project’ situated in Bhandup (west) and signed an agreement dated August 10, 2014.
Chaurasia alleged that developer promised with the possession date of the said apartment within 2.5 years from the date of the agreement.The revised date put out by the developer was December 31, 2014 in the MahaRERA registration.The complainant demanded that the entire amount be paid to them by the developer with interest and compensation be refunded as per the provisions of section 18 of the Real Estate (Regulation and Development) Act 2016
The representative of the respondent, Bhavesh D Vora in his defense said no date of possession was mentioned in the said agreement. Vora also said that a fixed date of possession was never promised to the complainant due to risks involved in the redevelopment project. The RERA bench explained to the complainant that no relief for delay under section 18 cannot be granted to them as no specific date of possession was mentioned in the agreement registered between the parties. Chaurasia agreed to reconsider his decision regarding continuing in the project if a reasonable possession date is ordered.
The RERA bench said that revised possession date of December 2024 put out by the developer is unreasonable time period for completion of the project as the revised date has to be commensurate with the extend of balance development. This has been mentioned in the rule 4 of Maharashtra Real Estate (Regulation and Development) Registration of Real Estate Projects, Registration of ReaI state Agents, Rates of Interest and Disclosures on Website Rules,2017.
The bench ordered that the respondent must hand over the possession date of the said apartment with Occupancy Certificate to the complainant before the period ending December 31, 2020, failing which the respondent would be liable to pay interest to the complainant from January 1, 2021 till actual date of possession. The said interest shall be at the rate as prescribed under RERA rules.
For the first time ever, a conciliation panel under the state real estate authority MahaRera resolved six disputes between flat buyers and builders—before formal complaints could be filed before the authority. The warring parties are given a chance to sit across the table and resolve the issue, if possible, instead of fighting it out by hiring lawyers before the housing authority.
Four complaints in Mumbai and two other disputes in Pune were resolved out of the 16 cases heard by eight different benches of the forum in the two cities. Some of the developers involved included L&T Realty, Acme Housing, Tridhatu Group, Ekta Group and Lavasa. Most cases were complaints about delayed possession, buyers seeking cancellation and asking for a refund.
Regulator’s order comes after builder blames civic body for project delays. In a first, Maharashtra Real Estate Regulatory Authority (MahaRERA), which has the powers of a civil court, summoned officials from Navi Mumbai Municipal Corporation (NMMC) in January to depose and submit evidence to decide complaints of delayed possession in connection with Green World project at Airoli on Thane-Belapur Road.
Officials from the Town Planning department of NMMC, which is the planningauthority, were called to verify if the delay in getting environment clearanceshappened at their office.
The developer argued that the delay was due to factors beyond their control and pointed out that the primary reason was the delay by the NMMC and the State Environment Impact Assessment Authority (SIEAA) in granting environmental clearances.
After hearing the arguments from both sides, and documents submitted, Singh felt it necessary to summon officers of Town Planning department of NMMC. The Assistant Director of Town Planning submitted a letter on January 11 confirming that the plot owners had submitted application for No Objection Certificate for CRZ-II to BMC on August 17, 2011, and the clearances were given on June 11, 2013 after a gap of one year and eight months. On the basis of this NOC, the SEIAA granted environmental clearance on July 30, 2013.
First ruling on third-party rights and duties in transfer of mortgaged assets. In the first such ruling on third-party rights in housing projects, MahaRERA ruled that Xander Finance, a non-banking finance company (NBFC), which gave a loan to Bhagtanis of JVPD Properties Ltd against mortgaged assets of his two housing projects in Powai, will have to protect the interests of the home buyers as the third party.
The ruling came on a complaint filed by TriveshPooniwala and 20 other buyers from Bhagtani Serenity. After DiipeshBhagtani’s arrest in January,Xander Finance had secured a favourable order from the Chief Metropolitan Magistrate, Esplanade under the SARFAESI Act for taking possession of theassets mortgaged to the firm to recover its dues of Rs 13.50 crore. On January 15, the magistrate had appointed a Court Commissioner for takingpossession of the secured assets within a period of 60 days.
During the hearings, the home buyers contended that Section 15 of RERA and MahaRERA circular No. 11/2017 protects the interests of flat buyers whenthird party rights are created by the promoter and defines the third party as the new promoter also transferring the promoter’s obligations.
Xander had challenged the jurisdiction of MahaRERA to pass any restraining orders. After hearing the arguments of both parties, Kapadnis observed that Section 15 (1) of RERA mandates that the onus is on the promoter to seek consent oftwo-thirds of allottees and MahaRERA’s approval in case of a mortgage, and that Bhagtanis had not done so. Part 3 of the circular requires financialinstitution to do the same within seven days of the transfer. The new promoter acquiring assets will acquire the assets withall the legal liabilities of the promote.MahaRERA order protects the buyers who have parted with their life savings tobuy flats. The order clarifies that when the secured creditor will acquire the land in its name or transfers it to a third party , the newowner will have to protect the interest of existing home buyers and take all the liabilities of the old promoter.
MahaRera has held that builders are also entitled to interest for delayed payment in proceedings filed by buyers seeking interest for delay in possession. RERAheld both liable to pay interest for delay in possession and payment, even though the buyer had filed the case.
The authority directed the builder, HDIL, to pay interest for delay in giving possession of a free sale Rs 1 crore flat in Kurla and the buyer for delay in making the entire payment.
Observing that the law provides that the rate of interest payable to allottee and promoter shall be equal.
B D Kapadnis, Rera member who heard a dispute between Shrikant Pandit and Sudha Pandit against Rahul Anklesaria, HDIL, over delay in possession of a flat in Kurla, dealt essentially with the legal question whether a builder is entitled to interest from a buyer in a complaint filed by the buyer who wishes to continue with the project despite delay in delivery. The buyer had fileda complaint seeking interest for delay in possession. The answer, said the Rera member, was that the builder was entitled too.
The authority directed the builder to pay pay the Pandits simple interest on Rs 51 lakh, which had been received from the buyers, from March 1, 2017, till they hand over the flat. The buyers were directed to pay the builder Rs 48 lakh as unpaid dues, with interest from August 9, 2016.
RERA has made it compulsory for developers to get title insurance for all projects, opening a new segment of over Rs 10,000 crore for insurance companies.
Insurance companies have so far not covered land transactions and they say the reason for missing cover is unreliable land records, which can be challenged.
After the implementation of RERA, it is mandatory for developers to provide written affidavit to the buyer stating that the legal title to the land contains legitimate documents of ownership. This policy covers buyers of property against loss and settlement costs, litigation funds arising from problems in the land title discovered after purchase. HDFC Ergo and SBI General are working on launching title insurance policy.
Sum assured for title insurance will be the value of the property. Large developers, financiers would like to buy title insurance.
Mostly, it will cover issues arising out of forgery and fraud or claims arising out of documents not created properly. Interestingly, if property value appreciates, the policy will increase the limit of indemnity.
Thank you for visiting our website. We are currently updating our website towards compliance of the newly introduced housing law for the State of Maharashtra i.e. the Real Estate (Regulation and Development) Act, 2016 and the rules and regulations notified thereunder.
In the interim, no information, images or material which is currently available / displayed on the website relating to builder projects shall be deemed to constitute any advertisement, invitation, solicitation, offer or sale of any such builders product offerings. Please contact us for any enquiry.CONTACT US