2 Mumbai builders first to register under RERA

A Mumbai-based developer and a Thane builder are probably among the first in the country to register their project under the Real Estate Regulatory Authority (RERA), which came into effect on May 1.

Nayan Shah of Mayfair Housing was the first to upload his project plans online on the MahaRera website on Monday. He was followed by Rajan Bandelkar of Raunak Group, Thane and ten property brokers, said Gautam Chatterjee, who holds interim charge of the state regulator.

Chatterjee, who heads a 20-member team from a makeshift office in the Slum Rehabilitation Authority (SRA) building in Bandra East, said all the applications will be registered in the next few days.

As mandated, the developers have to upload details about their experience over the past five years, estimated project cost, money incurred and flats sold so far and Escrow bank account number, among other things. The law also says a builder has to submit an affidavit that the project information furnished by him while applying for registration is correct and RERA-compliant.

Shah told TOI that it took around 90 minutes to upload the documents of his ongoing project, Mayfair Vishwaraja, comprising 198 of the 298 apartments in Titwala (East).

“We have withdrawn all the brochures and sale plans till the project is registered,” he said.

Bandelkar applied for his project, Unnathi Woods, at Thane’s Ghodbunder Road. It includes two buildings with 234 flats. “The MahaRERA website is very user-friendly, operated by the KPMG team and mahaonline. There is no human interaction at all,” he said.

“Developers have been warned that any misleading or false data will lead to heavy penalties and criminal action under the new law,” said Chatterjee.

The state RERA office has four wings: finance, legal, technical and administration and IT. “Builders have now gotten over the initial shock of sharing their project information publicly. Hopefully, the new law will bring in self-discipline in the industry. If the project is compliant, no developer will have to step into this office,” he added.

Every builder now has to register the project before he starts any form of advertising, marketing, booking, selling, offer for selling or inviting people to purchase plots, apartment or buildings.

Before applying for registration, the layout of the real estate project has to be approved by the local authority like the BMC. However, the developer may include some buildings in his application of registration where apartments are proposed and the building approvals are pending, according to RERA rules.

If any promoter fails to register as per the Act, he shall be liable to a penalty which may extend up to ten per cent of the estimated cost of the real estate project. On continued violation, rules stipulate he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent of the estimated cost of the project, or with both.

The exceptions

All commercial and residential real estate projects will have to be registered except where

Area of land proposed to be developed does not exceed 500 sq metres

No. of apartments proposed to be developed does not exceed eight, inclusive of all phases

Promoter has received completion certificate for a project prior to commencement of this Act

Project is for the purpose of renovation or repair or redevelopment which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project

New chairman soon

*RERA interim chairman Gautam Chatterjee will soon be replaced with a regular chairman, said housing secretary Sanjay Kumar. Chatterjee, who was appointed as officer on special duty in the chief minister’s office, was later made interim chairman of RERA in January this year

*A three member search committee headed by Justice S S Kemkar has been set up to recommend the chairman and members of the authority. The final decision will be taken by the government

*As per RERA Act, an officer of the rank of principal secretary and additional chief secretary can be appointed chairman. The RERA Act came into force on May 1. Developers are expected to register ongoing projects within three months with RERA

Source From: http://realty.economictimes.indiatimes.com/news/regulatory/2-mumbai-builders-first-to-register-under-rera/58487667

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