MahaRERA chief on how state has started getting developers to complete projects on time, so that owners get possession of flats.

Maharashtra has taken the lead in implementing RERA and it seems to have made a visible difference to home buyers. What did MahaRERA do correctly compared to other states?

Maharashtra was about to come out with Maharashtra Housing Regulatory Act when RERA came in. Maharashtra agreed to Centre's suggestion that there would be one central act, with every state having its own rules and regulatory authority. A total of 20,000 real estate projects are registered under RERA, of which 14,000-plus are in Maharashtra. Since May 1, we have received 682 complaints on the MahaRERA portal, and 408 of these are being heard. We have already given more than 90 rulings.

Did developers co-operate with you?

We tried to reach out to the three stakeholders -consumers, estate agents, and developers. We told them that regulation is not strangulation; regulation and development is also promotion of the industry. If you join with us and show compliant behaviour, over a period of time, things will be cleaner. Transparency and accountability cannot be detrimental to the industry. It will also help recognise delinquent behaviour and lead to a clean industry, with professional players and a comfort level for investors.

But, what about projects not registered with RERA? In many of these, thousands of home buyers have been cheated.

There have been instances where developers have, through soft launches, picked up money from the market. Till date, there is no clarity on land ownership; or it is a wetland where construction cannot be done; or there is no permission granted by the planning authority. People felt these projects should also come under the purview of RERA. But when we register a project, it must have the necessary basic approvals of layout and the first building from the competent planning authority. If not, we will not register it. Whatever is eligible for registration — we will penalise them and make sure they register the project. But for something that is ineligible for registration, because it doesn't have the basic approvals, MahaRERA will not be able to provide relief to people who have been cheated; they must approach the EoW.

Why has MahaRERA blindly accepted revised deadlines of 2020 and 2025 given by developers when the completion deadlines in their agreements are 2017 or 2018?

We have been telling developers that a completion deadline of 2025 may drive people away. The industry must understand this. After all, unsold inventory stands at 55 per cent. Maharashtra rules clearly state that the completion date must be commensurate with the extent of development remaining to be completed. If a developer's project is 80 per cent complete, we look into what is a reasonable time to complete the remaining 20 per cent — say six months. If the project is not complete, then from the seventh month, the developer has to pay interest. This is a difficult exercise of trying to get developers on board, and telling them to complete the task on time. Our focus from the beginning has been to try and resolve the issue and ensure that incomplete projects are completed, so that consumers get possession of their flats.

In some cases, it has been found that developers have partially completed mega projects and obtained part Occupancy Certificates. However, they have not completed common amenities like clubhouses and swimming pools. How does MahaRERA deal with such cases?

OC is granted building-wise. If a developer has got part OC for eight out of 10 floors, he has to register the two floors which do not have an OC. Once these two floors are registered, buyers on the ninth and 10th floors can come to us if they have grievances. Does that leave other buyers who have already got possession in the lurch? No, because, part of the project which is not complete is registered. That registration will ensure that other amenities are completed. The only thing that may have happened is that a person who got possession in 2015 was promised that the clubhouse would be ready by 2016, but it is not ready even today, and he is prevented from filing a complaint because it is not registered under RERA. MahaRERA is trying to ensure that those home buyers who have not got possession of their flats, who are staying on rent or paying EMIs, must get possession of their flats.

But developers have been listing incomplete or incorrect info to escape scrutiny.

The information he has put out there on the MahaRERA portal - the correctness and incorrectness of it - is all there. A developer may have 10 buildings in a layout and possess IOD for only two. We are saying the choice is yours - two buildings as a phase is also fair. A person in Building 1 may have a parking lot in the Building 3 podium, and a clubhouse in Building 5. If that phase is not registered with RERA, the developer cannot advertise that. If the developer is going ahead without approvals, it will be brought to our notice. It is not fair, at least in the first year, to doubt the developer's intention based on the information he has put out or not put out.

Some developers also plan to move the National Company Law Tribunal (NCLT). Shouldn't MahaRERA be the authority to decide on insolvencies involving real estate?

That is a matter presently before the ministry of housing and urban affairs, and the ministry of corporate affairs. Sections 7 and 8 of RERA talk about how to manage projects gone bad, or how to bring in someone else to see that the projects are completed. I feel the difference between real estate and any other insolvencies is that in real estate, the only resolution plan has to be completion of the project. In other insolvencies, it could be liquidation. So, the housing ministry has taken up with the corporate affairs ministry that home buyers must be treated on par as primary creditors. We will have to wait for more clarity from the two ministries.

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Source: mumbaimirror.indiatimes.com