Reacting positively to Maharashtra draft for RERA rules, Anuj Puri, Chairman & Country Head, JLL India said that rules and regulations of Maharashtra RERA is a step in positive direction with multiple optimistic tell tales.
“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 – read carpet area, super built-up, etc. – needs to be disclosed in full.
Also, all information for under-construction phases/wings will need to include the amount of work completed and certified by the project’s architect. The cost mentioned as required for completion must be backed by a certificate from the engineer and developer’s chartered accountant. The developer must also provide a certificate from a Chartered Accountant clearly mentioning the balance amount of receivables from the apartments sold or allotted for which agreements have been executed.”
Applauding the draft’s focus on transparency and it’s wholehearted attempt to upheld the directives provided by the center and at the same time making it state-oriented, he adds,
“Though Maharashtra missed the deadline for announcing the State’s rules for RERA, it should be commended for following the Centre’s RERA Act most closely in letter and spirit. The draft under discussion covers all under-construction projects where most of the issues of trust deficit have historically arisen. However, it stays quiet on projects where possession is already offered or occupation certificates have been received prior to the Act being passed. This limits the retrospective coverage for such projects.
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.”