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Maharashtra Real Estate Regulatory Authority [RERA]


A new remedy under “The Real Estate (Regulation & Development), Act, 2016”, is introduced for Buyers of Immovable properties. The present write up is limited to those properties which are situate in the State of Maharashtra.

Who can maintain complaint before RERA Authority / Adjudicating officer: All persons (Buyers / Allottee) who have purchased Flat, etc, (even prior to the coming into operation of this Act) in such Real Estate Projects which are required to be compulsorily registered, are entitled to maintain complaint before Competent Authority / Adjudicating officer established under the Act by the State Govt. The Buyer will include such transferee who acquires the said Flat, etc. by way of transfer or sale, but will not include such persons who are lessee or Licensee. This is very important, that is to say, “All Real Estate Projects are required to be compulsorily registered u/s 3 of the Act, which have not received “Completion certificate” from the competent / local authority”. Therefore, all Buyers / Allottes who are part and parcel of a Project which is required to be registered under the Act, are qualified to file complaint under this new regime.

What are the important details from the view point of Buyer, which the Promoter is required to furnish at the time of Registration of Project: Relevant Sections 4(2), 11(1): The complete details of promoter including their photographs; nature of organization set up; brief detail of project in the last 5 years introduced by said Promoter, and their status; details of litigation pending in respect of each of the project; copy of approvals including commencement certificate obtained from competent / local authority; the sanctioned plan; the facilities and amenities to be provided in the concerned project; the exact location of the project; proforma of allotment letters, Agreement for Sale, etc to be signed with potential Buyers; details of size of various apartments, Flats, etc in the concerned project; details of garages available for sale; the details of authorized Real estate Agents for the concerned project; the names and addresses of contractors; architects, structural engineers associated with the concerned project; and declaration that (a) Promoter has valid title to the concerned land, (b) concerned land is free from encumbrances, or details of encumbrances, if any, (c) the time period (the date) within which the Promoter undertakes to complete the concerned project. After securing registration of the Project, the Promoter is obliged to create a webpage on the website of the Authority; and the Promoter is obliged further to update the details of registration granted by Authority; and all the above details can be viewed by the potential Buyer on the website of maharera.mahaonline.gov.in. The Promoter is further obliged to update the details at their webpage regarding the number of Flats, etc, garages, etc, sold; the status of the project, etc.

What are the important details which the Promoter is required to furnish to the Buyer at the time of purchasing the Flat, etc: Relevant Sections 11(2), 11(3), 11(4), 12: All the above details of Registration is available for the potential Buyer at the webpage stated hereinbefore. Section 11(2) of the Act obliges the Promoter to secure that any Advertisement of the project must contain the details of their concerned webpage which is uploaded on the webpage of the Authority.

Sale of Parking space: No open parking space is permitted to be sold by Promoter. The Promoter can only sell covered parking and garages as defined in the Rules.

Can the promoter change sanctioned Plans: Section 14: No sanctioned plans, etc. can be altered except with consent of the allottee. However, minor additions and alterations are permitted as recommended by Authorized Architect / Engineer, under intimation to the Allottee.

Insurance of the project: Section 16: Promoter has to obtain all such insurance as notified by the State Government. The State Government can prescribe insurance including but not limited to a) Title of the land and building as a part of the real estate project; and b) Construction of the real estate project.

What are the rights of the Buyer to claim refund of purchase money and to claim damages, in the event the project is not completed in time: Section 18: In cases where the Promoter fails to complete the project and give possession of the Flat, etc, (a) according to the terms of the Agreement and according to the declaration made u/s 4(2)(l)(C) of the Act; and (b) where the business of the Promoter is discontinued due to suspension or revocation of its registration of the concerned project, or (c) for any other reason, the allottee / Buyer may file Complaint before Adjudicating officer (AO), through the office of the Authority under Rule 7 of Maharashtra RERA Rules, 2017, in the prescribed format in FORM “B” appended to these Rules. The Fee is Rs.5000/- and it can be paid by NEFT / RTGS / any other digital mode. On receipt of Complaint, the AO would issue Notice to the Promoter alongwith the copy of Complaint; and also state the next date of hearing. On the said date of hearing, the AO would explain to the Promoter / his authorized representatives, the nature of contraventions alleged against it; and thereafter, may either dismiss the complaint, or may fix the further date of hearing, for producing evidence and other documents; and thereafter, after taking into consideration the documents and evidences produced before it, either may dismiss the complaint, or may adjudge the quantum of compensation to be payable to the Complainant; and in both the event , either dismissal of complaint or grant of compensation, the AO is obliged to record reasons for he doing so. The AO, before passing Order, is also required to record his findings to such factors as specified in Section 72 of the Act.

What are the rights of the Buyer to claim possession: In cases where the Promoter fails to give possession of the Flat, etc, according to the declaration made u/s 4(2)(l)(C) of the Act, and where the business of the Promoter is not discontinued, and the concerned project is not deregistered, and the Buyer doesn’t seeks the refund of the purchase money and compensation, the allottee / Buyer may file Complaint before Authority under Rule 6 of Maharashtra RERA Rules, 2017, in the prescribed format in FORM “A” appended to these Rules. The Fee is Rs.5000/- and it can be paid by NEFT / RTGS / any other digital mode. The procedure followed is exactly the same which is followed by AO on receipt of Complaint. In the event of delay in handing over possession, the Buyer is entitled for interest.

Appeal to the Orders passed by Authority / AO: Any person aggrieved by any order passed Authority / AO, may file an Appeal before the Appellate Tribunal within a period of sixty days, in accordance with Rule 9 of Maharashtra RERA Rules, 2017. Further Appeal would lie before High Court on the limited issue of substantial question of law being involved in the dispute.

How to secure compliance of Orders, interim or final, passed by Authority / Adjudicating officer: Rule 4; Section 40: The Orders, directions, decisions of Authority / AO may be enforced in the same manner like a decree of the Court is enforced. Further, failure to comply to Orders, etc. of the Authority / AO may occasion imposition of heavy penalty upon the Promoter, including criminal prosecution as provided u/ss 63 to 68 of the Act.

What are the obligations of Promoter to form Society and execute conveyance: The Promoter is obliged to form Legal Entity like Cooperative Society, Company, Association, Federation etc. within three months from the date on which 51% of the total number of Purchasers, in such a building or a wing, have booked their apartment; and shall execute a registered conveyance deed in favour of the allottee within three months from date of issue of occupancy certificate or 51% of the total number of Purchasers, in such a building or a wing, has paid the full consideration to the promoter, whichever is earlier.

Can a complainant approach both the Authority / AO and the Consumer forums for the same disputes: As per section 79 of the Act, civil courts are barred from entertaining disputes (suits or proceedings) in respect of matters which Real Estate Regulatory Authority or the adjudicating officer are empowered to determine. However section 88 at the same time also says that the provisions of this Act are in addition to the provisions of any other law which are in force. So, in my view, the jurisdiction of Consumer Forum can also be invoked simultaneously. Similarly, the provisions of MOFA also survive after coming into force of this Act.

What is the penalty prescribed for non-registration of a project under the Act: If any promoter fails to register his project, u/s 59 of the 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.


Sandeep Jalan

Advocate


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Comments

Unknown said…
Thank you for sharing such great information.
It is informative, can you help me in finding out more detail on
about rera act.
Gruhakhoj.com said…
This is incredible posting! I quite enjoyed reading it, I will remember to bookmark your blog and will eventually come back very soon Nashik Property
Blog Admin said…
Excellent post, Rajasthan RERA has also come up with another landmark judgement which will be a cornerstone in further cases. For details refer this judgement here.
Pradeep Rj said…
It's look awesome. Thanks for your useful information. Real Estate describes the built environment without which the businesses and society cannot function. The residential and commercial sub-divisions of the Real estate sector is covered under the Real Estate (Regulation & Development) Act, 2016. The aim of RERA Act is to protect the rights and interests of the consumers and to promote uniformity and standardization of business practices and transactions in the Real Estate sector. It also attempts to balance the interest of buyers and promoters by imposing certain duties on both of them and seeks to establish symmetry of information between buyer and promoter.

Reach vakilsearch for Rera Complaint Online
Nik said…
Your Article is very unique..keep up the good work.
Hrugved Realtty - Pune's Top Real Estate Company

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