November 24, 2017

 

The new set of rules will see MahaRERA use another word as per the Real Estate (Regulation and Development) Act, 2016, MahaRERA officials said

PUNE :

The Maharashtra Real Estate Regulatory Authority (MahaRERA) is set to issue a fresh order on the use of the word “co-promoter” in its rules within three weeks.

The new set of rules will see MahaRERA use another word as per the Real Estate (Regulation and Development) Act, 2016, MahaRERA officials said. It will not use the word “co-promoter” and make the land owner liable only if he/she has shares in a project.

“If the land owners get area shares or flats in lieu of money, they will be held liable as they would be selling the units. But if they are not involved in the project, there is no question of any liability,” a MahaRERA official said.

As the word “co-promoter” is not in the statute, MahaRERA will have to issue a fresh order stating the new word to be used for the land owners with shares in properties and those who do not, the official added.

MahaRERA had withdrawn its order making land owners equally liable as that of builders and developers as part of the Act and it was submitted as an affidavit in the Bombay high court (HC) last week.

Advocate general Kumbhakoni told an HC division bench of Justice Naresh Patil and Justice Rajesh Ketkar that the authority had withdrawn the order dated May 1, by which it introduced the definition of the term “co-promoter” in the statute.

Kumbhakoni was responding to a petition filed by a group of residents from Mumbai owning a 12,531 sqm plot at Nahur. They had given the land for development to a private developer, Shivkripa Enterprises.

In the petition filed through advocate Vishwajeet Kapse, they challenged the validity of the order primarily on the ground that MahaRERA was not empowered to introduce any such new term. “The impugned office order is tantamount to legislation,” the petition stated. “The respondent (MahaRERA) cannot legislate for the state, much less for the Union,” it added.

They, however, withdrew the petition last week after Kumbhakoni issued a statement to the effect that the office order has been withdrawn.

Mumbai Grahak Panchayat president Shirish Deshpande told TOI, “One cannot hold the land owner or the society responsible along with the developer. It is good that MahaRERA has withdrawn its earlier order on the issue of co-promoter being liable. The wrong has been corrected.’’

Credai-Maharashtra president Shantilal Kataria shared the same view. He said if the owner has given land to the developer, he should not be held responsible for the violations. “His work is complete once the developer pays him. It is the developer who sells the units. If land owner has no share, he cannot be held responsible,” Kataria said.

Credai-Pune president Shrikant Paranjape said though he was yet to see the notification, the move was correct.

Activist Vijay Kumbhar, however, said citizens would find it difficult to understand who’s accountable if the rules keep changing. “The rules should be specified and the right person should be held accountable,” he said.

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Source: realty.economictimes.indiatimes.com