Maharashtra misses realty law deadline

According to the draft rules, it will be mandatory for a realty project promoter to upload all disclosures, including information and documents, to the website of the RERA

The Maharashtra government has missed the deadline of October 31 set by the central government to notify the Maharashtra Real Estate (Regulation and Development) (General) Rules, 2016.

Framing of these rules was required following the enactment of the Real Estate (Regulation and Development) Act, 2016, which seeks to protect home buyers and boost investments in the sector.

"It was just an advisory issued by the Union government. Several states are yet to notify these rules," a Maharashtra housing department official said.

"Draft rules will be issued this week seeking suggestions by the end of November. The rules will be notified before the winter session of the state legislature slated to begin on December 5. This will ultimately lead to the establishment of the Housing Regulatory Authority," the official added.

According to the draft rules, it will be mandatory for a realty project promoter to upload all disclosures, including information and documents, to the website of the Real Estate Regulatory Authority (RERA). The promoter will have to deposit 70 per cent of the amounts realised from allottees in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost.

Gulam Zia, Executive Director, Knight Frank said, "The draft rules will be drawn out of the central RERA draft but will still require public consultation. The process can take up to a year to conclude," he said, adding respite was still some way off for an ordinary home buyer.

JLL India Chairman Anuj Puri said except Gujarat, no other state had notified the

RERA rules before the October 31 deadline. "Maharashtra, along with other states like Andhra Pradesh, Karnataka and Tamil Nadu are in advanced stages of finalising their rules," he said.

Puri argued a regulator would help the sector become more organised. "Many issues that the sector encounters today - a trust deficit between homebuyers and developers, frequent delays in completion of projects and fly-by-night operators - will be mitigated once a regulator is in place. Consumers will feel safe to deal with developers who have their projects listed with the authority and with brokers empanelled by the developers," said Puri.

Cushman & Wakefield Managing Director (Mumbai) Gautam Saraf said, "While the central government has set October 31 as the deadline for states to frame rules for the real estate authority, several states, including Maharashtra, are yet to notify the rules. The RERA is of utmost importance to the realty sector as it will bring in transparency."