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The Maharashtra government plans to establish the housing regulatory authority by June-end under the provisions of the Maharashtra Housing (Regulation and Development) Act, 2012. The government, which has already missed the June 2014 deadline for the same, is currently finalising rules and the selection of candidates for the post of chairman and members of the regulatory body. The government is also looking for a suitable space to house the regulatory authority.
The delay is despite the government receiving the Presidential assent to the Maharashtra Housing (Regulation and Development) Act, 2012 in February last year. The Congress-Nationalist Congress Party government had proposed to put in place the housing regulator in June last year but it could not do so because of the Assembly elections.
A senior bureaucrat admitted that the government missed he June 2014 deadline for the establishment of housing regulatory authority. “Already, a search committee has been formed headed by the chief secretary. The committee is in the midst of selection of candidates for the post of chairman and other members. The chairman will be of the rank of principal secretary.” Besides, state-run Maharashtra Housing and Area Development Authority has been asked to allot a suitable space in its headquarters situated at Bandra in northwest Mumbai.
“The government expects the housing regulatory authority to be established by June end,” said the official. He added Maharashtra would be the first state to have a housing regulator.
According to the provisions of the Maharashtra Housing (Regulation and Development) Act, 2012, the housing regulator will enjoy powers of a civil court and can pass orders to transfer 10 per cent of the total project to buyers who can then sell it in the market to cross-subsidise the construction cost and finish the project in time. The builders won't be permitted to sell at least 10 per cent of their total apartment until they finish construction and procure an occupation certificate.
Further, registration of housing projects and displaying it on the website of the Housing Regulatory Authority becomes mandatory for the promoter. The promoter will have to pay fees not exceeding Rs 50,000 along with the application for registration.
They will be barred from selling or even marketing their project
Furthermore, the regulatory authority can sentence errant developers to a prison term of up to three years and impose fines of up to Rs 1 crore.
