RERA: No extension for project registration beyond July 31, says state body chief
Maharashtra Real Estate Regulatory Authority (MahaRERA) chairperson Gautam Chaterjee has said it will not extend the deadline for registering projects under the Act beyond July 31. “We want to bring in transparency and accountability in the real estate sector and developers should register their projects by the end of the month,” said Chatterjee, speaking at the 9th Edition of CII Realty and Infrastructure Conclave organised by the Confederation of Indian Industry (CII).
“We have no intention to extend the deadline and if the central authority feels like extending it, I will oppose it, at least for Maharashtra. Other states may have issues but Maharashtra is fully prepared and geared up for RERA” Chatterjee said, adding that non-compliance attracts “heavy” penalty under the Act. So far, 307 projects have been registered with the RERA. “Now, the daily registration of projects has gone up to 50 and it may go up to 500 very soon. I think around 15,000 projects may be registered by end of the month,” Chatterjee said.
Under RERA, a developer cannot sell flats in a project, ongoing or new, unless those are registered with the authorities within three months of the Act coming to force from May 1. The last date for registering all projects is July 31. Talking about projects that have been completed and have got Occupation Certificates (OCs) till May 1, Chatterjee said he has written to the state government to bring these projects under the jurisdiction of MahaRERA.
“Since such projects do not require to register with us, I have written to the state government asking to bring them under the Maharashtra Act, which will actually replace the Maharashtra Ownership of Flats Act (MOFA),” he said. Explaining benefits of the RERA, he added that the real estate industry would benefit from time-bound construction permits prescribed by the government. “If such deadlines are not adhered to, the authorities can pull up officials. The authority, which has powers of a civil court, can summon anybody and name and shame them like any other competent authourity does,” Chatterjee added.
Leaders from the real estate industries said builders were changing their strategies adapting to the changing dynamics. “Nobody wants to stick to land banking. Overall ticket size has come down, deleveraging is the name of the game, launches have come down and focus has shifted to completion of existing projects, and profitability has found its level at 15 per cent, coming down from 40-50 per cent earlier,” said Ramesh Nair, chairperson, CII Realty and Infrastructure Conclave and CEO and country head, JLL India.
Discussing the opportunity offered by the Prime Minister’s Housing for All initiative to builders, Niranjan Hiranandani, co-founder and managing director of Hiranandani Group, said: “Even if the industry is growing at a rate of 35 per cent per annum till 2022, we can hardly fulfil 50 per cent of the dream.”