The Maharashtra Real Estate Regulatory Authority (RERA) has issued a new circular clarifying the conditions for real estate projects to be eligible for RERA registration. The circular specifies that projects must exceed 500 square metres and include at least nine apartments to qualify. Smaller projects, with a land area of 500 square metres or fewer or with eight or fewer apartments, are exempt from registration. This clarification aims to streamline the registration process, enhance transparency, and foster a more accessible environment for developers while protecting consumer interests
The Maharashtra Real Estate Regulatory Authority (RERA) has taken significant steps by issuing a recent order that clarifies the eligibility criteria for real estate projects seeking RERA registration in the state. This new circular serves as an essential guideline for developers and stakeholders, as it delineates the specific conditions that must be met for a project to qualify for registration, thus promoting transparency and compliance within the real estate sector.
The MahaRERA circular references the RERA law, specifically section 3(2)(a), which outlines the types of projects mandated to obtain RERA registration. According to this legislation, for a real estate project to be eligible for registration in Maharashtra, it must have a land area that exceeds 500 square metres and include at least nine apartments. This stipulation is aimed at ensuring that only significant projects, which can impact the market and consumer interests more broadly, are subject to the regulatory framework established by RERA.
Furthermore, the circular makes it clear that projects proposing a land area of 500 square metres or less are exempt from requiring MahaRERA project registration. This exemption applies irrespective of the number of apartments or units proposed for development, whether that number is fewer or more than eight across all phases. This clarification alleviates smaller developers from the burdensome regulatory requirements associated with RERA, potentially encouraging more local developers to enter the market without the complexities of compliance that larger projects entail.
In addition, the circular states that projects proposing to develop eight or fewer apartments or units, including all phases, will similarly be exempt from MahaRERA project registration. This means that smaller residential developments can proceed without the regulatory scrutiny that larger developments face, fostering a more accessible environment for developers focusing on smaller projects.
The overarching implication of these clarifications is that a real estate project must meet both criteria-specifically regarding land area and the number of apartments-to qualify for RERA registration. This dual condition is critical, as it ensures that projects which could have a more substantial impact on the housing market and consumer protection are held to higher standards of oversight.
The recent MahaRERA circular represents a pivotal moment in the real estate landscape of Maharashtra. By clarifying the conditions for RERA registration, it not only enhances regulatory transparency but also balances the need for consumer protection with the operational realities of smaller developers. This initiative is expected to foster a healthier and more competitive real estate market, ultimately benefiting consumers and developers alike.
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