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RERA Act as applicable in Maharashtra (MahaRERA

Source : 14 Sep, 2018

What are the objects and reasons for which the Real Estate (Regulation and Development) Act 2016 has been framed?

Ans: The Real Estate Act is intended to achieve the following objectives:

  • ensure accountability towards allottees and protect their interest;
  • infuse transparency, ensure fair-play and reduce frauds & delays;
  • introduce professionalism and pan India standardization;
  • establish symmetry of information between the promoter and allottee;
  • imposing certain responsibilities on both promoter and allottees;
  • establish regulatory oversight mechanism to enforce contracts;
  • establish fast- track dispute resolution mechanism;
  • promote good governance in the sector which in turn would create investor

2. Which areas of Maharashtra are included in the Planning Area as defined in the Act?

Ans: In accordance with notifications issued by Urban Development Department of Government of Maharashtra, MR & TP Act is applicable to all the districts of Maharashtra. Hence, all areas of Maharashtra are included in Planning Area as defined in Section 2(zh) of the Act.

3. Does the definition of ‘promoter’ include public bodies such as Development Authorities and Housing Boards?

Ans: The Act covers all bodies (private and public) which develop real estate projects for sale to the general public. Section 2(zk) defines the term ‘promoter’ which includes both private and public real estate promoters. Thus, both Development Authorities and the Housing Boards, when involved in sale are covered under the Act.


4. If a real estate project has land area more than 500 sqmts but containing less than 8 apartments. Does it still need to be registered?

Ans. Yes. Every real estate project which has land area more than 500 sqmts or has more than 8 apartments needs to be registered

5. If a real estate project has land area less than 500 sqmts but contains more than 8 apartments. Does it still need to be registered?

Ans. Yes. Every real estate project which has land area more than 500 sqmts or has more than 8 apartments needs to be registered

6. Does advertisement include solicitation

by emails and sms? Is issuance of prospectus considered to be a case of ‘advertisement’?

Ans: As per section 2(b), which defines ‘advertisement’, any medium adopted in soliciting for sale would be covered under the said definition, including sms and emails. Prospectus, which is intended for sale of apartment in real estate project, will also be covered.

7. Can advertisement be issued for a new project after 1 st May, 2017 without registering the said project?

Ans: No. The advertisement issued after1st May 2017 must carry the MahaRERA Registration Number of the project.

8. Does the term ‘allottee’ include secondary sales?

Ans: As per section 2(d) an allottee includes a person who acquires the said ‘apartment / plot’ through transfer or sale, but does not include a person to whom such plot, apartment is given on rent. The Act doesn’t include rental projects, lease / leave and License deals.

9. Is it permissible to sell parking to allottees? Ans: The position of parking is as follows;

a) Open Parking Area: This has been clearly included in the definition of “Common Areas” which need to be conveyed to the Association of Allottees after Occupancy Certificate is received. Hence, sale or allotment of Open Parking Areas by the Promoter is not permissible

b) Covered Parking as defined in the Maharashtra Real Estate (Regulation and Development)(Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017 is permitted to be sold.

c) Garage as defined in the Act is permitted to be sold.

10. What is the obligation of the promoter towards return of amount and compensation to the allottee?

Ans: Section 18 of the Act provides for provisions as regards various situations in which the allottee would be compensated by the promoter due to delay in completion of the project etc.

11. Can a complainant approach both the Regulatory Authority / adjudicating officer and the consumer forums for the same disputes?

Ans: An aggrieved person can only approach one of the two forums for redressal of his grievance.

12. Is there some fee, in addition to the fees prescribed in the Rules, to be charged from promoters, real estate agents and complainants for the MahaRERA website uploading and online services?

Ans: Yes. It has been detailed in the MahaRERA Order available on the MahaRERA website.

II. FAQs from Consumer’s Perspective

13. Is it mandatory for the promoter to obtain permissions for the real estate project before applying for registration to MahaRERA?

Ans: Yes, the layout of the real estate project has to be approved. However, the promoter may include some buildings in his application of registration where apartments are proposed and the Building approvals are pending. Building Approval for the apartment must be obtained before the agreement for sale is signed between the promoter and buyer, regarding the said apartment.

14. What is the penalty prescribed for non-registration of a project under the Act?

Ans: If any promoter fails to register as per 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, 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 real estate project, or with both.

 Whether registration of real estate agents would be project specific, location specific or individual specific?

Ans: Real estate agents have to get registered with MahaRERA either as an individual or as “other than individual”. Promoters while applying for registration of any real estate project will have to indicate the names of registered real estate agents who will be working as agents in the said project. Names of such agents will be displayed along with other project specifications on the MahaRERA website, upon registration of the project.

17. What are the penalties that a Real Estate Agent would face if he fails to adhere to the mandates prescribed by MahaRERA?

Ans: If any real estate agent fails to register and contravenes the provisions of section 9 or section 10 of the Act, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by MahaRERA.

18. Is the promoter required to give any undertaking to MahaRERA for completing his project within a specified period?

Ans: Yes, in accordance with the provisions of the Act, the promoter, while applying for registration to MahaRERA, has to give a declaration, supported by an affidavit, indicating the time period within which he undertakes to complete the project or phase thereof, as the case may be.

19. If the registration of a real estate project is revoked for any reason, how will the interest of the buyer, in such project, be protected by MahaRERA?

Ans: MahaRERA will take action in accordance with section 8 of the Act.

20. In case of delay in getting possession from the promoter, will the buyer be
entitled to get interest on the amount paid by him, for such delayed period?

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Ans: Yes. In accordance with the model form of agreement, if the Promoter fails to abide by the time schedule for completing the project and handing over the [Apartment/Plot] to the Allottee, the Promoter agrees to pay to the Allottee, who does not intend to withdraw from the project, interest as specified in the Rule, on all the amounts paid by the Allottee, for every month of delay, till the handing over of the possession.

21. Will such interest payment by the promoter to the buyer be automatic or the buyer will have to approach MahaRERA?

Ans: The interest payment is in accordance with the model form of agreement and hence should be automatically paid. The buyer may have to file a complaint to MahaRERA if there is a grievance.

22. Is there a ceiling on the interest to be levied by the promoter in case of default in payment of any installments by the allottee/buyer?

Ans: In accordance with the model form of agreement, the Allottee has to pay to the Promoter, a rate of interest equal to the State Bank of India highest Marginal Cost of Lending Rate plus two percent, on all the amounts which become due and payable by the Allottee to the Promoter under the terms of the Agreement from the date the said amount is payable by the allottee(s) to the Promoter.

23. What are the provisions for an aggrieved person to lodge a complaint?

Section 31 of the Act and Rule 6 of Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017 provide for filing of complaint with MahaRERA, by an aggrieved person who has any interest in the registered project. The aggrieved person can file an application online as per format provided by MahaRERA. It shall include the following details:

– Registration number of the project to which the complaint pertains – Particulars of the complainant and respondent

– Facts of the case

– Relief Sought

– List of Enclosures and so on

24. Can a promoter or a real estate agent also file complaint against a buyer?

Ans: Yes. An aggrieved person having any interest in the registered real estate project can file complaint.

25. Is there any provision for interim relief to be granted, pending the final adjudication of the complaint?

Ans: The procedure to be followed by MahaRERA while adjudicating a complaint is detailed in section 36 of the Act read with Rule 6(2) of Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017.


Note: All Inforamtion provided by third party source.


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