Maharashtra CM Devendra Fadnavis approves Real Estate Act (RERA)

RERA came into force last May, 2016 and since October, states began issuing their version of the rules under the central act

MUMBAI: The Maharashtra chief minister Devendra Fadnavis approved the Real Estate (Regulation and Development) Act (RERA) that will come effect from May 1, 2017. The state housing department had prepared the rules and guidelines and submitted to the chief minister Fadnavis for his final approval. RERA came into force last May, 2016 and since October, states began issuing their version of the rules under the central act.

The Maharashtra government published the draft rules in December and had sought suggestions and objections from various stakeholders. “We had received over 650 suggestions and objections. There are several bodies which has given the multiples suggestions so we clubbed them. The final rules are now approved and it will come in effect from May 1, 2017,” said senior state govt.

As per this act, it will be mandatory for the developers to register and submit the approved to the RERA authority.

“Everything will be transparent and in black and white now. Whatever apartments, the developers are selling that they have to upload on the website so that the buyers will be briefed about the sale and vacant apartments. If the 60% apartments of any buildings or the project is sold, then it is the mandatory for the developers to register the society. And the make the conveyance deed within six months from the date of the registration. If the developers fail to do that then severe action will be taken the developers,” said officials. Shailesh Puranik, MD at Puranik Developer welcomed the decision.

“The RERA is very good for the consumer. We as the developer must keep 70% amount in the escrow account. It will help us to complete the project on time. Besides, the fly by night developers will run away that will be good for the real estate,” said Puranik.

He also said that due to the RERA the property prices will go northward.” Ramesh Pranhu, chairman at Maharashtra Welfare Society Association (MSWA) said that given the present market conditions, all the flat buyers of ongoing projects are looking for the implementation of RERA in Maharashtra.

“The best part is RERA covers all ongoing projects need to be registered under RERA. Any buildings which are not having OC are covered as ongoing projects. Having approved the Rules and Regulatory Authority being appointed for Maharashtra, the deadline prescribed by the Centre will be met,” said Prabhu. Niranjan Hiraman, chairman at Hiranandani Group said this new act will bring back the confidence in the market. “We are only concerned about the liquidity crunch. If the liquidity dries up, then we may face the problem while commencing the project,” said Hiranandani.

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