Maharashtra’s Real Estate Regulatory Authority (MahaRERA) is introducing a comprehensive three-tier scrutiny process for housing projects seeking registration. This initiative aims to enhance compliance and reduce complaints from homebuyers.
3 Level Scrutiny Process
1. Legal Evaluation
This stage involves examining land ownership disputes, encumbrances, litigations, and legal title reports related to the project site. Additionally, verification of developers’ and directors’ identification numbers (DIN) and their investments in other projects will be conducted.
2. Financial Assessment
Developers are required to provide declarations concerning financial encumbrance status, project details, reconcile encumbrance status, and submit asset-based reports from the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI).
3. Technical Verification
This phase necessitates developers to submit layout and building approval plans, Project Commencement Certificates (CC), details on approved floors, flats, construction areas, and various self-declarations.
Objectives and Implications
Ajoy Mehta, Chairman of MahaRERA, emphasized that the three-tier system aims to ensure registrations are granted only to projects meeting stringent criteria. The objective is to facilitate timely project completions and empower homebuyers.
In cases where applications fall short of MahaRERA’s standards, no registration number will be issued unless all provisions in the rule book are met. This measure is intended to safeguard homebuyer investments and maintain quality standards.
MahaRERA recently conducted a workshop attended by representatives from developers’ Self-Regulatory Organizations (SROs). Moreover, an extensive online presentation elucidating various aspects of the new mechanism has been shared with over 20,000 developers across Maharashtra.
MahaRERA’s systematic approach reaffirms its commitment to transparency, risk mitigation, and fostering confidence among both homebuyers and developers within Maharashtra’s real estate sector.
(Source: ET Realty)