October 6, 2017 3:42:26 am
Unlike in the past, the recently implemented Maharashtra Real Estate Regulatory Authority (RERA), a quasi-judicial body, will make it mandatory for developers to form a legal entity or a society once a project has 51 per cent allottees or home buyers. Once formed, the society will be able to oversee the progress of the project by monitoring the updates the developer will have to upload onto the RERA website every quarter.
Speaking at a workshop organised by the Urban Design Research Institute on Thursday, RERA chairperson Gautam Chatterjee said that the provision in the act will allow home buyers to make informed choices with access to all the relevant information of the project. “Earlier, the builder would form a society only after the building was complete and occupation certificate had been issued. But now, builders are required to form a legal entity (or society) once 51 per cent of the allottees have booked apartments. The society can then oversee the project sitting at home on their computer without having to visit the site at all,” said Chatterjee.
Addressing students of architecture, Chatterjee said that architects as well as chartered accountants and engineers affiliated with the registered projects will have a crucial role to play. Referring to the norm that 70 per cent of the funds collected from the home buyers will have to be deposited in the project account and to be used for that project alone. “Architects, engineers and chartered accountants registered with the project will have to issue certificates for withdrawals made from the project account and they will also have to give a final certificate once the OC has been issued,” he said.
While the deadline for registration of ongoing projects has expired, Chatterjee said that around 1,000 new projects have also been registered with RERA so far. He added that for ongoing projects, developers will have to update the status once every quarter failing which heavy penalties may be levied against them.
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