RERA action against consultant evokes fear among builders in Maharashtra
Mumbai city news: Earlt this month, a city property broker was fined Rs1.20 lakh for advertising residential projects that were yet to be registeredmumbai Updated: Jun 15, 2017 01:21 IST
The Maharashtra Real Estate Regulatory Authority’s decision to penalise Sai Estate Consultant of Rs1.20 lakh for misrepresentation of facts has evoked fear among builders and brokers in the state.
The first penal action in the country under the Real Estate (Regulation and Development) Act 2016 has made both builders and brokers cautious about registering their projects, as any error can invite penal action.
“We can be asked to pay 5% of the value of the apartment as fine, although we just get 1% brokerage. If such steep fines are levied, many real estate agents will be out of the business,” said Vikram Mehta, president, Confederation of Real Estate Brokers of India (CREBAI), an association of real estate brokers.
He said although 1,100 brokers have registered with RERA in the state, they are not given any protection in cases of non-payment of brokerage to them by builders or buyers.
Found guilty of advertising and marketing an unregistered project last week, the RERA directed Sai Estate Consultants to withdraw the advertisement and apologise for it. The consultant was penalized under Unfair Trade Practices on grounds of misleading the public.
RERA has mandated that the builders need to give full disclosure of the type of the firm, their experiences, their construction plans along with the time of delivery of the apartments.
“Builders are taking care of minute details as RERA is very strict with regards to change of plans. We are taking all precautions. This is leading to a delay in registering,” said Manohar Shroff, vice-president, MCHI (Navi Mumbai).