The primary objective of the Maharashtra Real Estate Regulatory Authority (MahaRERA) is to ensure that developers follow the rulebook, however, its own self-regulatory organisation (SRO) seems to be at odds with the purpose. There are six SROs with MahaRERA – NAREDCO West Foundation, CREDAI-MCHI, CREDAI-Maharashtra, Builders Association of India Maharashtra State, Marathi Bandhkam Vyavsayik Association and Brihanmumbai Developers Association.
An SRO is obligated to encourage its members to comply with the provisions of the real estate regulations and other orders apart from ensuring that no false, misleading or incomplete information is furnished with the MahaRERA.
MahaRERA sends over 19,000 show-cause notices to Maha developers
Yet, the MahaRERA was compelled to send over 19,500 show-cause notices in January to the developers across Maharashtra for not having updated information on the regulator's portal. Around 3,500 developers acted on the notices, while the rest ignored it. In a follow-up, fresh notices were sent to promoters of around 16,000 projects helmed by members of different real estate bodies and associations, which are also a part of the SROs.
When CREDAI-MCHI office-bearers were posed with the question of law violation on their part, they admitted that at times they failed to follow formalities, while in several instances even the SRO was ignorant of the law.
“Most of the project's errors are on our part wherein the buildings have got the occupation certificates but the developers haven't filled form 4. I am talking about myself and the company also, to be honest with you, we have received five OCs, but not filled the requisite form 4,” said Dominic Romell, President (Mumbai Metropolitan Region), CREDAI - MCHI.
CREDAI National President Boman Irani said, “Actually technology does not decipher between what is done and not done, it just says that the form hasn't been filled and shows a red mark (on the MahaRERA portal).” Several developers who have received the OCs have been asked to comply with the formalities, he added.
Romell and Irani hoped that slowly but surely developers will comply with rules and the number of projects – which have received the MahaRERA notices – will come down from 16,000 to a three digit number. When asked why this simple step of filling a form was not taken for the last so many quarters, Irani feigned ignorance of law and stated that the builders did not know about it. The mindset of developers is such that they have to be constantly reminded of such things, he added.
The question arises that shouldn't MahaRERA take the initiative to delist such non-compliant SROs? Well, the MahaRERA officials were tight-lipped on the action as a query sent to them did not elicit a response.
