In a bid to enhance transparency and protect the interests of homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a comprehensive three-tier scrutiny process for housing projects seeking registration. This innovative approach involves legal, financial, and technical scrutiny by independent teams to ensure timely project completion and minimize potential risks.
The three levels of scrutiny are meticulously designed to address various aspects, including legal disputes related to land ownership, financial encumbrance status, and technical details such as layout and building approval plans. The introduction of this stringent application review is a significant step towards achieving zero complaints from homebuyers in the future.
MahaRERA’s proactive approach aims to identify potential obstacles that could hinder project completion. In instances where a registration application falls short of MahaRERA’s benchmarks, the project will not be issued a registration number until all rule book provisions are met. This stringent process ensures that homebuyers’ investments are safeguarded.
To further support developers in navigating these new measures, MahaRERA recently organized a workshop attended by representatives of Self-Regulatory Organisations (SROs) working with developers in the MahaRERA office. The detailed presentation, covering legal, financial, and technical aspects, was aimed at addressing any queries or doubts developers might have.
About Legal, Financial, and Technical Scrutiny:
Legal:
- Disputes related to land ownership
- Encumbrances, litigations, etc.
- Scrutiny of project development agreement clauses
- Verification of developer’s and its Director’s Directors Identification Number (DIN)
Financial:
- Declaration of financial encumbrance status
- Reconciliation of encumbrance status
- Submission of bank account details
Technical:
- Submission of layout and building approval plan
- Project Commencement Certificate (CC) details
- Verification of total approved floors, total flats, construction area, etc.
MahaRERA’s emphasis on addressing internal inconsistencies during the application process aims to streamline the registration process, facilitating developers in obtaining a registration number promptly.
Ajoy Mehta, Chairman of MahaRERA, emphasized, “This three-tiered system has been established to carry out comprehensive, thorough, and stringent financial, legal, and technical verification of every project, negating the possibility of projects becoming stressed. This is MahaRERA’s another step to empower Homebuyers.”
