PUNE: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has made it clear that landowners getting a share of the total revenue from the sale of apartments or a project marketed or sold will be treated as promoters.
The authority in an order issued on Monday land owners of nearly 4,345 projects registered as they being co-promoters will be mentioned as promoters. Their liability will be decided on the basis of whether they are land owners or investors.
The order stated that a land owner will be accountable as a developer if he has taken area of a project and not cost.
"It was necessary for the consumers' benefits to distinguish or identify whether such a promoter is a land owner, investor or is the one who has actually obtained the building permissions for carrying out the construction work," a MahaRERA official said.
Credai-Maharashtra president Shantilal Kataria said the specification clears the doubts for the consumers and as well as the developers. "If a person is only a land owner and has no area share, he is not liable as the builder," he said, adding that the order clearly states that a copy of the written agreement must be uploaded on the RERA website for public viewing.
Shrikant Paranjape, president of Pune Credai (metro), said the new order is a clarification that needs to be studied and interpreted correctly. "There have been some distinctions made between a developer and a land owner/investor," he said.
The new set of rules has seen MahaRERA use the word "promoter" as per the Real Estate (Regulation and Development) Act, 2016. It will not use the word "co-promoter" and make a land owner liable only if s/he has shares in a project.
Credai asks govt to weigh in
The Confederation of Real Estate Developers' Associations of India (Credai) has requested the housing and urban affairs department to facilitate successful implementation of the Real Estate Appellate Tribunal under Section 43 of the RERA Act.
The authority in an order issued on Monday land owners of nearly 4,345 projects registered as they being co-promoters will be mentioned as promoters. Their liability will be decided on the basis of whether they are land owners or investors.
The order stated that a land owner will be accountable as a developer if he has taken area of a project and not cost.
"It was necessary for the consumers' benefits to distinguish or identify whether such a promoter is a land owner, investor or is the one who has actually obtained the building permissions for carrying out the construction work," a MahaRERA official said.
Credai-Maharashtra president Shantilal Kataria said the specification clears the doubts for the consumers and as well as the developers. "If a person is only a land owner and has no area share, he is not liable as the builder," he said, adding that the order clearly states that a copy of the written agreement must be uploaded on the RERA website for public viewing.
Shrikant Paranjape, president of Pune Credai (metro), said the new order is a clarification that needs to be studied and interpreted correctly. "There have been some distinctions made between a developer and a land owner/investor," he said.
The new set of rules has seen MahaRERA use the word "promoter" as per the Real Estate (Regulation and Development) Act, 2016. It will not use the word "co-promoter" and make a land owner liable only if s/he has shares in a project.
Credai asks govt to weigh in
The Confederation of Real Estate Developers' Associations of India (Credai) has requested the housing and urban affairs department to facilitate successful implementation of the Real Estate Appellate Tribunal under Section 43 of the RERA Act.
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