Tag: Maharashtra Real Estate Regulatory Authority

Maharashtra real estate watchdog issues show-cause notices to 313 projects for shortcomings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Maharashtra Real Estate Regulatory Authority on Monday sent show-cause notices to 313 major projects in the state, after an external auditor’s report identified several shortcomings.

According to an official statement, the watchdog engaged a reputable audit firm as part of its directive to scrutinise projects at a detailed level, and the show-cause notices were dispatched to projects that the firm identified as problematic.

The regulator noted that the total expenditure claimed to be incurred by a developer were not reflected on the ground. As examples of the flaws, it informed that there are instances when a developer had claimed 75 percent of the projected spending is done but the project was only 50 percent complete.

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The statement continued, “Similarly, there are instances where the targeted date of completion is less than six months away, but the work is less than half complete.” It also stated that the audit took into account statutory progress reports filed with Maharera, developer ratings, and information from bankruptcy courts.

According to the Maharera statement, professionals with knowledge of banks and the income tax recovery division have been instructed to investigate by going to such projects.

If a developer does not cooperate, the report from the investigator will be considered final, and action will be initiated, the statement warned. 

Among projects that have been issued the notices, suburban Mumbai accounts for the maximum number of projects at 109, followed by neighbouring Thane with 58, Pune at 56 and Mumbai City at 44, the statement said.

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Expect home prices to go up by single digits in 2-3 years, says Puravankara

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After a bumper quarter that saw net profit rise by a whopping 1,024 percent to Rs 155 crore on the back of a 184 percent spike in sales, real estate developer Puravankara has outlined its launch plans for the festive season. Speaking exclusively to CNBC-TV18, CEO Abhishek Kapoor said that the company has a launch pipeline of 14 million square feet, of which 50 percent is in the affordable segment.

“We will launch a mix of plotted developments, affordable housing, and premium-luxury housing,” Kapoor said, adding that nearly 50 percent of the new launches will come under ‘Provident’, the firm’s affordable housing brand whereas 3.5 million square feet will be under ‘Puravankara’ and another 3.5 million in the plotted developments business, which is seeing significant growth.

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Maintaining his company’s positive outlook for the festive season, Kapoor said that inventory levels have begun shrinking pan-India, which in turn has prompted developers to continue with project launches. “Prices have continued to increase and demand has continued to stay stable,” he said and predicted that in the upcoming festive season, there will be a demand pick up.

While Knight Frank data has indicated a decrease in average weighted price across seven property markets in H1 2021, year-on-year, several A-grade developers have reported an increase in ticket prices.

Many others have predicted a steady increase over the next 12 months, not only on account of improving sentiment but also the rising prices of construction materials, especially steel. “Single-digit appreciation of price is a realistic outlook over the next two to three years,” said Kapoor.

Whether prices actually appreciate hinges on the government’s support for the sector on the policy front. For instance, in Maharashtra, developers have been petitioning the government to re-introduce a 3 percent rebate on stamp duty.

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Property sales in Mumbai soared between November 2020 and March 2021 on the back of reduced stamp duty. Since the rebate was revoked, there has been a correction in sales.

In the national capital region (NCR), a proposal to increase circle rates (guideline values) in Noida, Greater Noida and along the Yamuna Expressway could also potentially slow down real estate sales owing to possibly higher stamp duty. The Gautam Budh Nagar administration is also considering levying a surcharge of 5 to 15 percent over properties sold along the Metro Rail.

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“If there is government support in terms of reduced transaction costs especially stamp duty, it will incentivise people to make buying decisions,” said Kapoor. “I believe the real estate sector can contribute to the growth of the country. However, the government needs to look at it favourably,” he added.

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Bombay HC directs developer to pay Rs 5 cr for delay in property hand over

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Bombay High Court has directed real estate developer Renaissance Infrastructure to pay Rs 5.04 crore as compensation to a person who had not been handed over his property in Mumbai even after a delay over 80 months. A single bench of Justice S C Gupte on September 25 upheld the orders of the Maharashtra Real Estate Regulatory Authority and the RERA Appellate Tribunal that had ordered for the compensation amount to be paid to the purchaser.

The developer had approached the HC, challenging orders of RERA and the RERA Appellate Tribunal passed in January this year. As per the HC order, the purchaser bought six plots of land and some warehousing buildings from the developer in December 2009.

According to the sale agreement, the warehousing buildings and plots were to be handed over to the purchaser by March 9, 2010. The agreement also said that if the developer failed to hand over the properties on time, he would be liable to pay the purchaser a compensation amount at the rate of Rs 10 per sq ft per month.

When the developer failed to hand over the property, the purchaser approached the RERA that calculated the compensation amount as Rs 5.04 crore. The Renaissance Infrastructure challenged this order before the appellate tribunal, which asked the developer to deposit 50 percent of the compensation amount as per the RERA Act for entertaining the appeal.

But, when the developer failed to pay the pre-deposit, the appellate tribunal dismissed the appeal. The developer then filed a second appeal in the HC.

In his order, Justice Gupte dismissed the second appeal after holding that there were no infirmities in the orders passed by the RERA and the appellate tribunal. He held that the orders do not give rise to ”any substantial question of law for the consideration of the High Court”.

Justice Gupte said the Renaissance Infrastructure was liable to hand over the property as agreed to. ”Under this agreement, termed as an agreement for sale, the appellant (Renaissance) was bound to hand over possession of the suit premises to the respondent within an agreed period,” the high court said.

It directed the developer to pay Rs 5.04 crore to the purchaser within four weeks.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MahaRERA makes it easier for homebuyers to file complaints, report unregistered projects

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Maharashtra Real Estate Regulatory Authority (MahaRERA), which is considered as a role model when it comes to implementation of the act, has now revised its standard operating procedure.

In a circular issued by MahaRERA, the authority has revised its standard operation procedure for complaints being filed with the authority and for source information of the projects, which ought to have been registered but have not registered.

This has been done after inputs received from various stakeholders and experience of MahaRERA over past one year.

“We have decided to further simplify the complaints procedure and digitise the source information of projects procedure,” said Vasant Prabhu, Secretary, MahaRERA.

So what are the new changes? Now the complaints of MahaRERA will get to upload all the documents online, while filing the complaint on MahaRERA portal.

Earlier, the complainants had to submit the hard copies separately to the authority.

Interestingly, this will reduce a lot of time.

Now, the 60 days period in which the complaints have to be resolved, will start as soon as the complainant receives his/her complaint number.

Previously, the time period used to start only after the submission of hard copies to the authority.

Also, if the respondent is a promoter, a separate notice of the complaint filed won’t be sent to him/her.

Now, the details of the complaints will be available on his project ID dashboard.

For the source information on projects not registered, earlier MahaRERA had only one email ID through, which people could inform them about unregistered projects.

Also, there wasn’t any way to follow up on the complaint.

In order to address these issues, MahaRERA has now streamlined the procedure by creating an online application form on its website.

The informant has to submit the details of unregistered projects online. This application will be free of cost.

The mobile number of the informant will be verified through a One Time Password (OTP).

“The informant can also view the status of their application on real time basis by using the mobile number or information reference number,” Prabhu added.

The revised procedure for complaints will be applicable from August 1 and procedure for source information on projects is implemented with immediate effect.

So far, more than 17,000 projects and 15,000 real estate brokers have registered under MahaRERA.

It has received some 3,000 complaints out which nearly 2,000 have been resolved.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow