Until 7:20 pm on Monday, about 9,000 ongoing projects and 7,200 property brokers in the state had applied for registration with the authority. The number of applications for ongoing projects was expected to move closer to 10,000 by midnight when the deadline came to an end, an official at the Authority said, referring to the proposed suo motu action.
According to developers, there are more than 20,000 ongoing realty projects across the state that had to be registered with the authority.
Although the pace of registration remained slow until last week, the momentum increased closer to the deadline of July 31. Over the last three days, the MahaRERA portal had witnessed huge traffic as developers rushed to register their ongoing projects.
The regulator had already stated that the deadline for registration of ongoing projects with the authority will not be extended. To prod realty developers to expedite the process of registering their projects, the regulator has also announced that builders can make changes to their project documents from September.
“According to section 59(1) of the RERA Act, if the promoter allegedly contravenes the provision of Section 3 – it deals with registration, selling and marketing of new and ongoing projects – he will be liable to pay penalty up to 10% of the project’s estimated cost as determined by the authority,” said Sudip Mullick, Partner, Khaitan & Co.
According to Mullick, the regulator would have to determine the quantum of the penalty after taking into consideration the reasons that a promoter-developer puts forward for his non-compliance. Also, the authority will have to determine what the estimated cost of that project would be for applying the penalty.
Even after further direction or order from the regulator, if the developer continues to violate provisions of section 3 of the Act, he may face imprisonment of up to 3 years, the fine may go up by another 10%, or both penalties may apply.
The government enacted the Real Estate (Regulation & Development) Act 2016 and all the sections of the Act have come into force with effect from May 1 this year. Maharashtra was one of the first states to notify its rules under the Act and establish MahaRERA.
Realty developers were expected to make an application for registration under the respective state authorities within three months from the date of commencement of the Act for ongoing projects. Real estate brokerages and agents, too, are not allowed to practice until they get registered with the authority. However, there was no deadline for brokers to get registered under RERA.
Read Original Article