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Realty bites: Builders rush to register ongoing projects under new act in Maharashtra

While a total of 6,534 projects have been registered so far, around 1,000 came under RERA on Sunday.

mumbai Updated: Aug 01, 2017 07:33 IST
Naresh Kamath
Naresh Kamath
Hindustan Times
Mumbai news,RERA,real estate mumbai
(Picture for representation)

Builders in the city are rushing to get ongoing projects registered with the deadline under the Maharashtra Real Estate (Regulatory and Development) Act (RERA) ending today.

The number of new registrations reached 9,145 by Monday evening, the last day for registering the ongoing projects. This is a huge jump from 6,534 projects registered till Sunday evening.

According to Vasant Prabhu, secretary, MahaRERA, this was an encouraging response. “We were expecting at least 10,000 registrations and we are close to it,” said Prabhu.

More than 2,500 builders registered their project till evening.

The projects coming under the purview of the housing regulator is good news for homebuyers who have invested in under-construction projects, as they will now be protected against fraud and manipulation by builders.

The associations of real estate developers said they were complying with the rules. The Maharashtra Chambers of Housing Industry (MCHI), the apex body of builders, had deputed experts at various places to help builders submit details of their projects online.

“Builders are doing their best to submit within the deadline. Various experts are helping them as the disclosures cannot be changed later and details need to be precise,” said Manohar Shroff, vice-president, MCHI-CREDAI (Navi Mumbai).

Read: Real estate sector slowdown : New development projects in Mumbai dip by 36 per cent

Builders stand to be penalized if they are unable to register their projects before the deadline. The Maharashtra government, which brought RERA into force on May 1, has refused to extend the deadline.

The RERA was formed to safeguard interests of homebuyers who have been exploited by builders for decades. Under the Act, a builder has to disclose his entire construction plan as well as the time line of when he will give possession of the apartments. There are severe penal clauses in the Act against errant builders and brokers who market the project.

Mayur Shah, president of CREDAI-MCHI, said: “This will help to usher in increased transparency in the realty sector and give confidence to consumers.”

The details will be displayed online as they will allow buyers to make an informed choice before purchasing the apartment.

Read: New act likely to prolong slowdown in the realty sector

Real estate developers have been unhappy with the RERA, saying it will further delay the process of permissions and affect their business. However, left with no option, more than 6,500 projects have already registered with the RERA.

The real estate sector has been bleeding with a large stock of unsold apartments. The Mumbai Metropolitan Region (MMR) has approximately 2.61 lakh unsold stock, of which Mumbai has 90,000 houses. Homebuyers are unable to buy owing to exorbitant prices.

First Published: Jul 31, 2017 13:12 IST