Legal Evolutions in Real Estate in Maharashtra

By Adv Mukessh Bajirao Zende
Pune, 17th February 2025: The Indian real estate sector is undergoing a significant transformation, propelled by an ever-evolving legal framework and reforms aimed at transparency, accountability, and efficiency. Of all the states constituting India, Maharashtra has emerged as a front-runner in implementing these changes, ensuring a robust legal foundation for developers, investors, and homebuyers alike. This article explores key legal developments shaping the sector, and Maharashtra’s pivotal role therein.

Regulatory Evolution in Indian Real Estate
Implementation of RERA

The Real Estate (Regulation and Development) Act, 2016 (RERA), marked a paradigm shift for the real estate industry, aiming to protect homebuyers and ensure project transparency. Its key features include:

Escrow Accounts: Preventing fund diversion.
Mandatory Registration: Projects and agents must register with state RERA authorities.
Standardised Agreements: Ensuring compliance and imposing penalties for violations.
Dispute Resolution: Speedy resolution of grievances.
Maharashtra’s Impact: MahaRERA, the state’s regulatory authority, has set benchmarks for effective implementation. Its proactive measures have instilled confidence among developers and buyers alike, ensuring absence of disputes or their faster resolution besides streamlined operations.

Amendments to Land Acquisition Laws: The ‘Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013’ replaced outdated laws, providing fair compensation and rehabilitation to landowners.

Maharashtra’s Perspective: Robust policies have facilitated landmark infrastructure projects like the Mumbai Metro, Pune Metro, and Samruddhi Highway, minimising disputes and expediting approvals.

GST in Real Estate: The introduction of the Goods and Services Tax (GST) created a uniform tax structure, replacing multiple indirect taxes. For under-construction properties, GST is levied at a flat rate, simplifying compliance.