The Real Estate (Regulation and Development) Act, 2016 is an Indian law meant to protect real estate buyers and promote investment in the sector. According to the Act, each Indian state must have a Real Estate Regulatory Authority (RERA) that oversees construction and investment in real estate and resolves disputes.
The Maharashtra RERA, also known as MahaRERA, has salient features that make it one of the most proactive real estate regulatory authorities in India.
1. Applications Processed
MahaRERA was established in 2017, right after the formation of RERA act. It holds jurisdiction in Daman and Diu and Dadra and Nagar Haveli.
2. Carpet Area Sale
Before the implementation of RERA Act in Maharashtra, real estate developers would sell projects based on built-up area i.e., the area of the plot containing the outer walls. MahaRERA has made it compulsory for developers to sell projects based only on carpet-area. This ensures that homebuyers pay for only the area they occupy permanently.
3. Effective Complaint Redressal
Of the 8,412 complaints received by MahaRERA to date, 5269 have been redressed successfully. This reflects MahaRERA’s efficiency and speed when it comes to resolving real estate disputes. This is one of the reasons homebuyers in Maharashtra feel at ease when deciding to invest in real estate. In two of its previous judgements, MahaRERA has penalised developers for not mentioning the possession date on the homebuyer’s contract. The penalty, in both the cases, included interest payment to buyers.
4. Creation of Unique Panels
In July 2019, MahaRERA ordered the formation of a unique panel to ensure timely completion of real estate projects. This panel will have one consumer and one developer representative who will contact banks, homebuyers, and builders to take over incomplete projects and deliver them on time. This decision to form a panel was taken by MahaRERA after 253 delayed projects had to be seized in July 2019. The developers of these projects were asked to refund purchase amounts to homebuyers who hadn’t received possession.
With the induction of MahaRERA, it has become more lucrative than ever to invest in buying a home. Homebuyers do not have to worry about losing their money to delayed projects or housing scams. This makes it convenient for consumers to secure housing finance to buy their dream house.
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