Successful implementation of Maharashtra’s RERA act

Why in news?

Maharashtra Real Estate Regulatory Authority (MahaRERA) came into effect recently.

What are the underlying provisions?

Real Estate (Regulations and Development) Act 2016 mandates all States to establish a regulatory authority to deal with the issues arising from transactions in real estate market.
On these lines Maharashtra established MahaRERA and the entire State is covered under it.
MahaRERA makes it mandatory for all ongoing commercial and residential projects to be registered with it.
Only registered developers or promoters in the State are allowed to sell, book or advertise their projects.
Without a registered sales agreement, no developer can accept more than 10% of the cost as advance payment from a buyer.
In case of delay, the promoters are mandated to pay interest to the buyers for every month of delay over the advance payment.
Also, all the registered projects across the State will be uploaded on an online map so that buyers can view and scrutinise the projects under construction before visiting the site.

How it serves as a model for other states to follow?

Accountability - An individual can view projects online to know the status of their development and their expected date of completion.
Transparency in transactions - With online fee payment and registration, number of registered projects, granted permissions and the registered and resolved complaints can be viewed easily.
Usage of GIS - Through this, buyers can look at projects available in their area of interest, its details as well as social amenities (schools, transportation facilities, hospitals) in the vicinity.
Rehabilitation - With the discussion on bringing the rehabilitation component of redevelopment projects under its ambit, truly affordable houses for urban poor or slum dwellers can be ensured in the city.
Establishment of judicial benches -

MahaRera has given a time frame of 60 days to dispose of cases.
Around 90% of the complaints relate to delayed possession, which attracts very stringent fines (up to a jail term) under the MahaRera Act.

All these measures prove that a regulated real estate market can be a win-win for all, which can be emulated by other states in their respective jurisdictions.

Source: Business Line, Indian Express