After the Real Estate (Regulation and Development) Act (RERA) came into effect, the Brihanmumbai Municipal Corporation (BMC) has received 208 proposals seeking occupation certificates (OCs) between April and June this year. It is a four-time hike in the number of proposals compared to the last year.
According to the civic body’s data, the building and proposals department received 208 proposals for seeking OCs from April 1, 2017, to June 29, 2017. Of these, 108 have been approved, 38 applications are in process and 61 have been rejected. One proposal is being revised.
Last year, the department received 198 applications between April 2016 and March 2017. It approved 147 applications while 42 have been rejected. the rest are being processed.
The RERA came into effect from May 1. “The RERA mandates that all projects should be registered with them within three months. Hence, there seems to be a rise in the number of developers submitting proposals that are completed but have been pending for OCs. The files are being processed accordingly as we have 60 days to clear the files,” said a civic official.
Under the RERA, a developer cannot sell flats in a project, ongoing and new projects, unless he/she is registered with the authority within three months of the act coming into force. The last date for registering all projects is July 31.
The real estate industry has welcomed it saying its a win-win situation for developers and consumers. “Obviously, the RERA is a contributing factor for the rise in number of proposals seeking OCs from the civic body. But it is a welcome move that shows that everyone is looking at the RERA seriously and it is not only good for the developers but for the consumers as well,” said Dharmesh Jain, president of the Maharashtra Chamber of Housing Industry.
However, state government officials have raised questions over clearing the proposals in a short span of time. “It is nothing but a victory of the RERA. The 60-day rule cited by the civic body is just an excuse to hide its hurry behind clearing the proposals. It raises questions about whether a large number of proposals are being cleared to keep them out of the ambit of the RERA,” said an official requesting anonymity.