MahaRERA’s 3 important decisions become a pilot for other states

Mumbai, 14 March 2024: On the lines of Maharashtra Real Estate Regulatory Authority’s (MahaRERA’s) three important policy decisions, the Uttar Pradesh Real Estate Authority (UPRERA) has decided to take a similar decision.

MahaRERA’s three policies that have become a pilot are: 1) mandatory QR code for each project’s information, 2) mandatory training and certification for agents, and 3) option to deregister non-viable projects subject to conditions.

These three are among the host of decisions MahaRERA has taken a lead in that have a pro-homebuyer long-term impact on the real estate sector. As a result of these policies, there is a higher transparency level in Maharashtra’s real estate sector and also makes developers accountable for their decisions as well as actions.

The successful outcome of homebuyers benefitting from the decisions taken has led to other states adopting MahaRERA’s policies. On the lines of MahaRERA’s initiatives, Uttar Pradesh has decided to implement three of the key policies.

The decision taken by UPRERA to mandatorily display QR code along with all project advertisements has been in force in Maharashtra since August 1, 2023. MahaRERA has been tracking all advertisements across platforms and initiating punitive action against erring developers. Due to QR code, homebuyers are getting comprehensive project information at only one click.

In January last year, MahaRERA had issued a circular making it mandatory for the real estate agents to undergo 20 hours of training and appear for an examination. This is another decision, now also applicable in Uttar Pradesh. An agent plays a crucial role during property’s sale and is a link between a homebuyer and the developer. Hence, it is important for the agent to have an understanding of legal provisions pertaining to an immovable property as well as regulatory affairs. Starting January 1, 2024, all agents in Maharashtra cannot conduct business without this certificate. Recently, MahaRERA cancelled the licenses of 13,785 agents that were registered back in 2017. After the fourth exam conducted for agents, presently there are over 10,000 certified agents in the state.

The third decision to come into force in Uttar Pradesh is to cancel a project’s registration owing to it becoming unviable. MahaRERA has allowed builders to deregister their projects subject to certain conditions that protect the rights of homebuyers and other investors. In case of a project becoming unfeasible or a change in plan due to regulations or legal disputes, etc., a project’s construction comes to a standstill. Such a situation leaves the homebuyers and investors in the lurch. In the interest of all stakeholders, opportunity is given to a developer to deregister a project only after they have met with the conditions laid down including holding a hearing as laid down in the circular issued on February 10, 2023.

Apart from UPRERA, other states have also shown their willingness to replicate several of MahaRERA’s initiatives. This includes having a standardised agreement for sale, allotment letter, establishment of micro-control room for compliance with regulatory provisions, submission of promoter’s DIN number along with an affidavit detailing promoter’s previous performance as well as other directors involved in the project, appointment of a retired Additional Collector for compensation related recovery warrants, having a Grievance Redressal Cell for homebuyers, reconciliation forum at MahaRERA headquarters to resolve disputes between home buyers and developers, suo motu penal action against projects printing advertisements without MahaRERA registration number and QR code, having ‘MahaRERA Grading Matrix’ or grading of real estate projects from April onwards, publication of consultation paper to maintain construction quality, guidelines for senior citizen housing, etc.