Accommodation Times News Service
Maharashtra has notified the rules for Real Estate (Regulation and Development) Act, 2016. The draft is open to question and suggestions till 23rd December, 2016 either through email or in post, which may be received by the Principal Secretary, Housing Department, Mantralaya, Mumbai 400 032. Maharashtra becomes seventh state to notify RERA rules and regulations. Here’s how industry reacted to it:
Manish Sinha, Head, QuikrHomes: “The draft laws under RERA by the Maharashtra government has many positives that will help in setting up a better environment for real estate sector in the state. Mumbai Metropolitan Region (MMR) is currently sitting on nearly 4 lakh under-construction inventory, out of which 25 per cent comes from the Thane region. With this recent move, the sector is expected to see an uptake in demand as buyers will now benefit from timely possession and security of invested money.
It has followed the Centre’s RERA Act closely and that will now shift the focus from new launches to the execution of already launched projects. However, it will be interesting to see the projects where possession has already been offered to the buyers.”
Kishore Pate, CMD, Amit Enterprises Housing Ltd: “Overall, the draft RERA regulations for Maharashtra present a sound document, but it does have some ambiguities which will need to be discussed and sorted out. Perhaps, it can be said that it does not reflect the seamless Delhi draft RERA rules. It should be remembered that RERA must, by all intents and purposes, protect the consumer in every possible way. One cannot say with firm conviction that this is the case with the current Maharashtra draft rules. However, this is still at the draft stage and is open to further amendments, which will hopefully follow to make Maharashtra’s RERA rules sound and customer-oriented in every respect.”
Anuj Puri, Chairman and Country Head, JLL India: “There are quite a few positives to be found in the Maharashtra RERA draft. For instance, all under-construction projects, irrespective of whether some of their individual towers/phases have received OC, have been covered under the Act. Full project-level disclosures have been mandated. Even older sales of units need to be disclosed in terms of monies received, and the area basis, super built-up, etc. needs to be disclosed in full.While it has maintained the previously stipulated 70% escrow limit, it allows for withdrawal by the developer where the method includes land cost to be added in the project cost. In a city like Mumbai, where land cost and cost of FSI/TDR are a very high proportion of total project costs, developers will be able to withdraw a substantial sum before actual construction of the project has commenced. This is, however, in line with the Centre’s Act.”
Vidip Jatia, Director, Belmac’s: “It is a welcome move by the government. With the act coming into force, the industry will become organised and will attract more funding. The focus will be changed from launches to execution. The industry will also see an uptake in demand with more people considering real estate as a good asset class in terms of investment.
Developers with a proven track record will benefit from PE funding at competitive rates, completion of ongoing projects and lesser supply of B/C quality products. The act will curtail unapproved projects and land layouts. This might also pose a challenge in the first few months; however, it will make the sector more systematic in the coming years.
Customers will benefit with timely delivery of homes, security of invested money and quality projects to choose from”