MAHARASHTRA A STEP CLOSER TO GETTING A HOUSING REGULATOR

MAHARASHTRA A STEP CLOSER TO GETTING A HOUSING REGULATOR

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 in has formulated the draft (Regulation and Development) (General) Rules 2016. This paves the way for formation of the Regulatory Authority (RERA) and the Tribunal. It would be mandatory for a to 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 project will have to be deposited in a separate account, to be maintained in a scheduled bank, towards land and construction costs.

The department official told Business Standard, “Framing of these rules was necessitated, following the enactment of the (Regulation and Development) Act, 2016 which seeks to protect homebuyers and boost investments in the 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 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.