MahaRERA Registration Mandatory For All Plotted Developments And Sale Of Plots

Mumbai, 1st February 2024: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has initiated a Suo Moto action against those promoters and developers who are into sale of plots without registering the project with the authority.

The MahaRERA office bearers have observed that there are advertisements placed by developers to sell “Non-Agricultural Plots” and these projects are being sold in the market without obtaining MahaRERA registration number.

This is a serious violation of MahaRERA provisions and show cause notices have been issued to 41 such promoters across Maharashtra who have advertised their projects without obtaining MahaRERA registration number. As per the law, it is mandatory to register such projects with MahaRERA.

As per Section 3 of the Real Estate (Regulation and Development) Act, 2016, registration with the MahaRERA is essential for the sale of a plot, flat or building subject to certain conditions. Apart from that, promoters cannot advertise the sale of plots, flats or buildings.

Of the 41 violating projects, majority are from the Pune region at 21, 13 from Konkan region and 7 belonging to Nagpur region.

A sizable number of the violations are from the belts that are either semi urban, near a city or in a rural area. However, in urban areas, the number of such plot related projects sales are negligible.

Along with its head office in Mumbai, MahaRERA has regional offices in Pune and Nagpur. Under the Mumbai head office are Mumbai Metropolitan Region and Konkan areas, likewise, Pune office’s jurisdiction has western and north Maharashtra and Nagpur office’s jurisdiction includes Vidarbha and Marathwada areas.

MahaRERA treats applications of plotted projects at par with those of residential buildings. Thus, Financial, Legal and Technical scrutiny is done for plot related projects as well.

The promoter is required to obtain relevant and statutory approvals from the Local Planning Authorities. Local authority’s look at the ownership, plot size, total area, plot’s boundaries, non-agricultural certificate (NA), etc. The promoter/ developer is responsible for civic facilities of water supply, internal roads, sewerage, public facilities, common areas, etc. based on which an occupancy certificate is issued by the local planning authority. Without these pre-requisites and stringent scrutiny, MahaRERA does not issue a registration number.

Once the project is registered with MahaRERA, the promoters have to fulfil a set of rules as stated under the Real Estate Act. These are to protect the interest of investors/ home buyers. Therefore, MahaRERA appeals to people not to get defrauded and to avoid purchasing plots that are not registered with the authority.

MahaRERA Chairman Ajoy Mehta said, “The Real Estate (Regulation and Development) Act, 2016 came into being to ensure safe and secure investment in the Real Estate Sector. It is imperative to obtain MahaRERA registration number before advertising sale of plots, flats and buildings. Despite this, it is a violation of law to advertise and sell plots without obtaining MahaRERA’s registration number. This is to protect the rights of investors. MahaRERA does not tolerate any irregularities in the Real Estate Sector and this action of sending show cause notices is to protect the purchaser’s interest.”