The Maharashtra Real Estate Regulatory Authority (MahaRERA) will be undertaking a three-level scrutiny of housing projects that will be registered to ensure zero complaints from homebuyers and better compliance on developers’ part.
As part of this new mechanism, all the project registration applications received will be subjected to scrutiny at legal, financial, and technical levels. These three tiers of thorough scrutiny will be done by three different independent teams.
With the introduction of new application scrutiny measures, MahaRERA aims to ensure projects to be completed within the scheduled time frame without any hurdles and eventually bring down the complaints from the home buyers to zero.
The applications will have to undergo all possible scenarios that may derail the project or may pose a risk of incompletion, the regulatory body said.
“MahaRERA has laid down the legal, financial and technical parameters to ensure that there are no problems in timely completion of the real estate projects, while issuing registration numbers to new projects. Only after meeting these essential criteria, new projects will receive a MahaRERA registration number… This is one more initiative from MahaRERA’s to empower Homebuyers,” said Ajoy Mehta, Chairman, MahaRERA.
According to him, this three-tiered system has been established to carry out comprehensive, thorough, and stringent financial, legal and technical verification of every project, to negate the possibility of projects turning stressed.
In an eventuality of the registration application unable to meet MahaRERA’s benchmark, no registration number will be issued to the proposed project, unless all the provisions mentioned in the rule book are met with. The regulator has initiated this additional measure to help protect homebuyers’ investments.
Recently, MahaRERA conducted a workshop to provide crucial guidance to the developers to clear any queries and doubts they have with regards to the new mechanism. This was attended by representatives of all the developers’ Self-Regulatory Organisations (SRO’s) working in the MahaRERA office along with virtual participation from the developers or their representatives.
A detailed presentation covering multiple facets of this new mechanism has been already shared online with more than 20,000 developers across Maharashtra.
As part of the legal scrutiny, the regulator will check disputes, if any, with regards to land’s ownership, on which the project is to be built, any encumbrances, litigations, legal title report, etc. It will also verify the developer’s and its director’s Directors Identification Number (DIN) along with details of their investments in other projects.
As part of the financial assessment, developers are expected to submit declaration of financial encumbrance status along with project details and reconcile encumbrance status and submit asset based Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) report.
In technical layer of scrutiny, the developer needs to submit layout and building approval plan, project Commencement Certificate (CC), total approved floors, total flats, construction area, various self-declarations etc.