70% of the amount realised for a real estate project will have to be deposited in a separate account, to be maintained in a scheduled bank, towards land and construction costs
The BJP-led government in Maharashtra has formulated the draft Maharashtra Real Estate(Regulation and Development) (General) Rules 2016. This paves the way for formation of the Real EstateRegulatory Authority (RERA) and the Housing Tribunal. It would be mandatory for a realty project promoterto make all “disclosures”, including information and documents to be uploaded on the website of RERA. Every promoter will have to file a separate application for construction of each building or group of buildings.
Besides, 70 per cent of the amount realised for a real estate project will have to be deposited in a separate account, to be maintained in a scheduled bank, towards land and construction costs.
The housing department official told Business Standard, “Framing of these rules was necessitated, following the enactment of the Real Estate (Regulation and Development) Act, 2016 which seeks to protect homebuyers and boost investments in the real estate industry. These draft rules were cleared on September 28 by the state law and judiciary department. Very soon, the department will release draft rules to seek suggestions and objections from stakeholders as final rules will have to be notified by October 31.”
According to the draft rules, the promoter will have to submit to RERA the approvals and Commencement Certificate from the competent authority if the project will be developed in phases. Additionally, copy of sanctioned plan, layout plan and specifications of the proposed project will also have to be submitted.