INDIA: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued warrants to 227 stalled housing projects in Pune to recover Rs 170.37 crore to refund money to home buyers who could not get possession of the flats due to incomplete work.
MahaRERA is a governing and regulatory authority overseeing real estate buying and selling in Maharashtra. It handles complaints like developers’ failure to complete the project in the stipulated time, substandard construction work, etc.
Till now, the authority has recovered Rs 32.92 crore in 39 cases in Pune, MahaRERA Media Adviser Ram Dotonde said.
In another case in Pune, a plot belonging to “Modular Constructions” measuring 83.28 square metres and located at Vishnu Apartment, Shivaji Nagar, Bhamburda, on plot no. 783 B (final plot no. 192) is in the process of being sold in the auction.
In this case, the developer was asked to refund Rs 49,08,376 to a flat buyer since he did not hand over possession of the flat. However, the developer failed to do so.
Similarly, the authority has issued warrants for 38 projects in Raigad district to recover Rs 22.2 crore. In the same district in Panvel, the property located at Morbi village (Survey no. 93/2/9, 93/3, 93/5, 93/6, 93/9, 93/11) belonging to the developer N K Bhupeshbabu was recently sold in an action for Rs 4.82 crore above the reserved price of Rs 3.72 crore.
New project commencement certificate
In another development, from June 19 onwards, no new housing projects will be registered by MahaRERA unless accompanied by a commencement certificate issued by the local body where the project is planned.
The developer will have to upload the commencement certificate to MahaRERA’s designated email. Earlier, the developers were allowed to register the projects based on self-attested documents.
However, last year, MahaRERA came across several projects in Kalyan and Dombivali in Thane district that were registered based on fake documents.
Show cause notices
In yet another development, developers related to 584 projects have been issued show cause notices for their failure to file quarterly returns, which are mandatory under the Act.
In January of this year, 746 projects with an investment of Rs 22,449 crore were registered. However, only 162 developers submitted the returns.
Under the “Financial Quarter-Based Project Progress Reporting System”, the developers are required to file the progress report every three months. They are required to open an account in a nationalised bank and deposit 70 percent of the money from the flat buyers.
They are also required to inform MahaRERA about the money deposited in the bank by self-certification.
Training for MahaRERA Practitioners
Meanwhile, about 39,000 agents, who are authorised to plead on behalf of the aggrieved flat buyers, are required to undergo training and obtain certificates by September 30.
The MahaRERA has introduced this training since the agents are required to know the regulations, like the agreement for sale, when the flat buyer should get the allotment letters, and other rules.