Maharashtra set to slash registration fee for real estate projects

The dilution will benefit construction projects being planned on small and medium-sized plots, said officials. “Developments of plots less than 5,000 sq m will benefit,” an official said.

Written by Sandeep Ashar | Mumbai | Published: October 14, 2018 9:39:58 am
Maharashtra set to slash registration fee for real estate projects The minimum fee for registration is proposed to be brought down from Rs 50,000 to Rs 10,000. (Express file photo by Karma Sonam Bhutia, Ganesh Shirsekar)

The state government plans to reduce the minimum registration fee a developer needs to pay to the Maharashtra Real Estate Regulatory Authority (MahaRERA). Sources said the minimum fee for registration is proposed to be brought down from Rs 50,000 to Rs 10,000.

Under the Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017, it is mandatory for promoters of all ongoing real estate projects — where the occupation or completion certificate is yet to be obtained — to register their projects with MahaRERA.

This should be accompanied by full disclosures regarding the title of the land, sanctioned building plans and the project financials, among others.

In case of multi-phase construction projects, promoters are required to submit an application for registration of each phase.

According to norms, the promoters are required to pay the registration fee along with the application for registration. While the fee is calculated on the basis of the area proposed to be developed at a rate of Rs 10 per square metre, existing rules state that a minimum of Rs 50,000 must be paid regardless of the plot size, while the maximum registration fee is Rs 10 lakh.

Sources said that the state housing department has now proposed a modification in the rules, proposing the reduction in the minimum fee to Rs 10,000. “The modification being proposed is on the basis of a request made by the authority itself,” said the source.

The dilution will benefit construction projects being planned on small and medium-sized plots, said officials. “Developments of plots less than 5,000 sq m will benefit,” an official said.

While the proposal is aimed at increasing the pace of registrations in semi-urban and rural belts, sources said that standalone redevelopment projects in the commercial capital, especially those in the suburbs of Mumbai, will also benefit from the move.

Maharashtra has seen the highest number of project registrations under RERA. Statistics show that more than 18,000 projects have so far been registered. Besides the registration fee, the housing department has also proposed some other minor modifications to the rules.

The state government is expected to sanction these as well.

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