To ensure real estate project’s timely completion, MahaRERA introduces three-tier scrutiny
Mumbai, 9th January 2024: To ensure zero complaints from homebuyers in future, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced three-level scrutiny of housing projects that will get registered.
Hereon, all the project registration applications received will be subjected to three-levels of scrutiny, namely, legal, financial and technical. These three tiers of thorough scrutiny will be done by three different independent teams.
With the introduction of new application scrutiny measures, MahaRERA aims at ensuring projects to be completed within the guaranteed 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.
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. Thereby, yet another significant step has been initiated to keep homebuyers’ investments protected.
Recently, MahaRERA conducted a workshop to provide crucial guidance to the developers to clear any queries and doubts they have.
The workshop was attended by representatives of all the developers’ Self-Regulatory Organisations (SRO’s) working in the MahaRERA office. Besides, there also was virtual participation from the developers or their representatives.
A detailed presentation that ran into 27 slides but went on for 3 hours, covering multiple topics was given. The aim was to mitigate and respond to any and every doubt that the delegates have. Moreover, the presentation detailing out all the issues was shared online with more than 20,000 developers across Maharashtra.
About Legal, Financial and Technical Scrutiny
Legal:
– Disputes, if any, with regards to land’s ownership, on which the project is to be built
– Any encumbrances, litigations, etc.
– Project’s name, area, project development agreement clauses
– Legal title report, CTS, Survey Number
– Format of allotment letter to be given to the customer after registration of the flat
– Scrutinising agreement for sale, deviations from the Standardized agreement
– Verification of developer’s and its Director’s Directors Identification Number (DIN) along with details of their investments in other projects.
Financial:
– Submit declaration of financial encumbrance status on promoter’s letter head along with project details
– Developer has to reconcile encumbrance status and submit asset based Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) report
– Declaration of bank account/s in a prescribed format
Technical:
– Submission of layout and building approval plan
– Submission of Project Commencement Certificate (CC), project name, CTS, survey number
– Total approved floors, total flats, construction area, various self-declarations etc.
Ensure no internal inconsistencies while submitting all the above documents.
If the developers submit their project’s application to MahaRERA with all the requisite documents, it will become convenient for them to get a registration number at the earliest.
“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 number to new project. Only after meeting these essential criteria, new projects will have a MahaRERA registration number. 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 becoming stressed. This is MahaRERA’s another step to empower Homebuyers” said Ajoy Mehta, Chairman, MahaRERA.
