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. While a total of 6,534 projects have been registered so far, around 1,000 came under RERA on Sunday.
These 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).
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.
The details will be displayed online as they will allow buyers to make an informed choice before purchasing the apartment.
Real estate developers have been unhappy with the RERA since they think 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.