The basic object of the Real Estate Act (REA) was to ensure accountability towards allottees, protect their interest, infuse transparency, ensure fair play and reduce frauds and delays. However, it seems promoters and builders have decided to challenge the competence and power of the Regulatory Authority established under the Real Estate (Regulation and Development) Act, 2016 (RERA).
The RERA also has seems to have succumbed to builders’ tactics or does not have the infrastructure to verify the validity of documents provided by builders. As far as Maharashtra RERA (MahaRERA) is concerned, many builders have not provided authentic documents while registering their projects. MahaRERA also has not verified those. Despite this, many builders and promoters have obtained registration certificate from MahaRERA.
Already the RERA rules have been diluted in Maharashtra and now builders are not providing authentic and full information. This raises a serious question on the authenticity of projects, even after obtaining RERA registration. After complaints, MahaRERA may take action on defaulting builders. For buyers, it was not easy to obtain detailed information about projects from builders. This has not been made easy by REA in Maharashtra. However, even after obtaining information, understating and analysing it is a huge task for buyers. So forget about anyone filing a complaint before the MahaRERA.
The various agencies in Maharashtra shy away from any accountability, causing serious damage to the basic objectives of proactive Acts, be it the Registration Act, The Right to information (RTI) Act, Maharashtra Right to Public Services Act or Maharashtra Land Revenue Code. MahaRERA seems to be no exception and the reason is that builders and promoters do not want REA to succeed, so that they can continue to cheat consumers.
It is possible that MahaRERA may not have adequate infrastructure to verify the authenticity of the documents that builders provide. But it is their responsibility to ensure builders provide all the necessary documents as required under the REA. Many builders either have not provided mandatory information or have provided irrelevant information. Despite this, they have received registration certificates from RERA. It is now the consumer’s duty to obtain the legitimate documents from MahaRERA, study it and lodge a complaint, if necessary.
Under REA, the builder/promoter has to provide and publish:
a) Important details of his enterprise, including its name and photograph/s of the promoter/s;
important details of the projects launched by him in the past five years, details of cases pending, details of type of land and payments pending;
b) an authenticated copy of the approvals and commencement certificate
c) the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as sanctioned by the competent authority;
d) the plan of development works to be executed in the proposed project and the proposed facilities to be provided, including fire-fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy;
e) the location details of the project, with clear demarcation of land dedicated for the project, along with its boundaries, including the latitude and longitude of the end points of the project;
f) proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees;
g) the number, type and the carpet area of apartments for sale in the project, along with the area of the exclusive balcony or verandah areas and the exclusive open terrace areas, if any;
h) the number and areas of garage for sale in the project;
i) the names and addresses of real estate agents, if any, for the proposed project;
j) the names and addresses of the contractors, architect, structural engineer, if any, and other persons concerned with the development of the proposed project;
However, in Maharashtra Real Estate Rules, promoters and builders have been exempted from publishing details provided under clauses (b), (e), (g), (h), (i) and (j). Taking full advantage of the diluted rules and working of MahaRERA, promoters and builders have suppressed lot of vital information.
As per the REA, for on-going projects builders have been given three months’ time from the date of commencement of the Act to apply for project registration. However, some promoter/builders are found using this as an ‘amnesty scheme’ to revive their dead projects. Some builders who have started their projects some 15–20 years ago, which they were supposed to have been completed before 2005, have now given the proposed date of completion as 2022! That means the project, if completed, would take 22 years to complete.
Every commencement certificate or plan has a limitation period. After expiry of this period, the documents have to be re-validated. However, some builders have uploaded expired documents on the MahaRERA website. As per REA, builders and promoters have to provide and publish brief details of the projects launched by them in the past five years and the payments pending. However, hardly any builder has submitted these details.
There are several other violations by builders/promoters while providing information to MahaRERA. Even so, they have received registration certificates. But this does not mean the projects are authentic or the builders/promoters have all the required and legitimate documents to start or continue the project. Therefore, it is now the consumers’ responsibility to be vigilant.
If you are making process then it should be 100% transparent for both buyers & builders...