MCHI Navi Mumbai conducts RERA implication workshop

MCHI Navi Mumbai conducts RERA implication workshop

A workshop was organised by the Navi Mumbai Unit of Maharastra Chamber of Housing Industry (MCHI) at Vashi on the subject 'Real Estate Regulatory Authority'.
Sunil Mantri, former president of MCHI explained that the Bill categorically states, "No promoter shall develop any immovable property or make any construction … without registering the real estate project and obtaining a certificate of registration from the Real Estate Regulatory Authority." If a project is being built in phases, fresh registrations have to be obtained for each phase. It however exempts registration for developments on an area below 4,000 square metres. Further, the Bill also mandates every builder to register with the regulator and obtain a certificate of registration. An important feature of the Bill is that the builder will have to provide detailed information on the number and size of the plots, layout plan, proposed project and the proposed facilities to be provided. In addition, all sanctions and approvals from the competent authorities will have to be submitted to the regulator.
'Most important, the Bill also mandates the builder to deposit 70 per cent of the money realised from the buyer from time to time, into a• escrow account and that the money deposited would only be used for the project in question. The Bill also states that registration granted for a project would be valid only for the duration by which the project would be completed, according to the declaration of the builder. Once the registration lapses, it can be renewed for a period of one year, but cannot exceed two years. No builder can advertise or publish a prospectus for a project with the intent of inviting buyers without first obtaining the registration from the regulator. In addition, no builder can issue an advertisement or prospectus without filing a copy with the regulator. In addition, if a buyer makes a deposit or advance payment on the basis of information contained in the advertisement, which is later found to be incorrect, the builder will have to compensate the buyer as per the order of the regulator. Further, if a buyer decides to withdraw from the project on these grounds, the builder is bound to refund the entire investment with interest. The builder cannot accept payment from a buyer without first entering into a written agreement for sale. This agreement should specify all the particulars and specifications, both internal and external. Once the project is complete and occupation certificate obtained, the builder will have to submit it to the regulator and execute a conveyance deed in favour of the buyer and hand over title documents to the society formed by the buyers. If the builder fails to complete the development or is unable to give possession as per the terms of the agreement, he would be obliged to refund the payment with interest and also pay penalties to be decided by the regulator. The buyer is obliged to make the payments as per the agreement and is liable to pay interest on account of delay.
Advocate Himanshu Bheda said the bill is one sided and in favour of consumer. There are many lapses and bounds which are not answered. The bill is silent on delays on the part of authorities, which are beyond developer's control. The proposed Act in its presentation form will add costs and face delays in their projects.
Suresh Haware, president, MCHI- Navi Mumbai unit, opined that the builder lobby should be treated as Industry by the government. Atul Agarwal, chairman said some of the regularities are very complex and need to be streamlined.
The workshop was attended by several developers including Manohar Shroff, general secretary, MCHI-Navi Mumbai Unit, Rajesh Prajapati, president, MCHI Raigad Unit, Mohan Gurnani, advocate Anjana Chheda, legal advisor MCHI, advocate Archana Tibrewal, asst. legal adviser MCHI and C P Goyal, chief manager finance, MCHI. The vote of thanks was given by Arvind Goel, vice president, MCHI-Navi Mumbai Unit.