MC Explains | The difference between RERA-registered, 'approved' and compliant projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) plans to take action against developers who misrepresent facts in their sales and marketing campaigns by claiming that their projects are RERA approved even though they may not be compliant with the norms.

There are instances of developers registering their projects with the regulator but failing to submit documents that are mandatorily required to be filed quarterly.

MahaRERA said while such projects may be registered with the regulator and are marketed as such, they may not actually be RERA-compliant and action can be taken against such developers for misrepresentation, a senior MahaRERA official said, asking not to be identified.

What does RERA Act say?

According to Section 11 of the RERA Act, 2016, the promoter (developer) is required to set up a web page on the RERA website and enter all details of the proposed project in the fields provided for public viewing.

The developers are also expected to file quarterly updates on the number and types of apartments or plots booked, the number of garages booked, the approvals received, the approvals pending along with the status of the project, and other information and documents specified by the authority.

What is MahaRERA looking at?

According to a senior MahaRERA official, some developers put out advertisements that suggest their projects are RERA-approved on the basis of registering them with the regulator.

However, on checking the MahaRERA website, the officials find that while the developer has registered with the RERA, the mandatory quarterly details have not been updated for one or two years, and in some cases, even longer.

“This is a misrepresentation of the facts, considering the developer is not RERA compliant for not uploading the project status that is mandatory,” the official said. “We are going to start taking action against developers of such projects by issuing them notices and seeking clarifications on why action should not be taken. This must not continue and developers are expected to not misrepresent their projects by using the name of RERA.”

Nothing like ‘RERA approved’

Advocate Nilesh Gala, who practices with MahaRERA, said there is nothing like a RERA-approved project.

“There is no concept of a RERA-approved project and actually, it is a RERA-registered project,” Gala said.

He said campaigns by some developers suggest that RERA has “approved” their projects so there is no impediment but that is a myth. Most developers do not comply with circulars and RERA guidelines but no action has been taken, Gala said.

How to check for RERA-registered and lapsed projects

Potential home buyers can check the status of a real estate project through its RERA registration page on the official website of MahaRERA.

https://maharerait.mahaonline.gov.in/searchlist/search?MenuID=1069

https://maharera.mahaonline.gov.in/Site/1128/Lapsed-Projects

How many projects are registered with MahaRERA?

Since MahaRERA was set up in May 2017, it has registered 36,651 projects, of which 9,815 have been completed, according to data available on the regulator’s website. MahaRERA has received more than 18,000 complaints and has passed orders in over 12,000 cases.