[ By Kavita Krishnan ]Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a circular according to which the promoters of all existing ongoing housing projects and new ones registering with the MahaRERA will have to cite their membership details of Self Regulatory Organisations (SRO) like National Real Estate Development Council (NAREDCO), Confederation of Real Estate...
Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a circular according to which the promoters of all existing ongoing housing projects and new ones registering with the MahaRERA will have to cite their membership details of Self Regulatory Organisations (SRO) like National Real Estate Development Council (NAREDCO), Confederation of Real Estate Developers Association of India (CREDAI) or Maharashtra Chamber of Housing Industry (MCHI) when they register their projects from December 1, 2019 onwards.
MahaRERA has associated with developer bodies like NAREDCO, CREDAI and MCHI as Self Regulatory Organisations (SROs) into its working shall ensure that their members follow a code of conduct, bring greater professionalism among promoters and curb fraudulent practices.
The SROs were registered with MahaRERA under Section 34 of RERA, which empowers it to regulate real estate projects and ensure compliance of their obligations by promoters.
MahaRERA amended a clause in Maharashtra Real Estate Regulatory Authority Regulations to make the membership of any SRO mandatory.
MahaRERA has the highest over 22,000 real estate projects registered with it, and ensuring that the developers update information about their projects every quarter regarding the progress of their projects is not an easy task. Many promoters believe that RERA registration is a one-time activity valid till the end of the project and ignore the information updates they need to give buyers to ensure full transparency.
MahaRERA believes that self-regulation through SROs would help promoters incorporate RERA principles and lead to more ethical and professional behaviour from developers, increase transparency from promoters, boost confidence of consumers investing in real estate, and enhance compliance with regulations.
NAREDCO Maharashtra President Rajan Bandelkar said that they have created a dual membership only for MahaRERA registered projects which would be separate from the normal membership, and the fee for this membership has been reduced to Rs. 5,000 in order to encourage more and more promoters to register with the bodies.