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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a two-year tenure limit for representatives of Self-Regulatory Organisations (SROs) to prevent conflicts of interest and ensure domain expertise. The move aims to streamline the registration process for housing projects by appointing specialists in legal, financial, and technical matters. MahaRERA has instructed the seven recognised SROs, including NAREDCO West Foundation and CREDAI-MCHI, to replace representatives exceeding the tenure limit. The decision underscores the regulator's commitment to ensuring efficient project scrutiny and expeditious issuance of registration numbers.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to cap the tenure of representatives in Self-Regulatory Organisations (SROs) assisting in housing project registration for a maximum of two years. This initiative aims to prevent conflicts of interest and ensure the presence of subject matter experts to enhance the registration process. Advertisement
MahaRERA has emphasised the necessity of appointing specialists in legal, financial, and technical disciplines, essential for scrutinising housing projects before registration. A directive has been issued to the SROs to immediately replace representatives who have exceeded the stipulated tenure.
Every housing project is mandatory to be registered with MahaRERA and obtain a registration number, as per the terms and conditions laid down in the Real Estate (Regulation and Development) Act, 2016. Developers of all housing projects are not permitted to advertise, promote and sell unless they have a MahaRERA registration number.
Having knowledge of legal, financial and technical aspects play an important role in determining the future of any housing project. Prior to issuing a registration number, MahaRERA scrutinises each proposal on these three criteria.
MahaRERA took the initiative in Oct 2019 to officially recognise a group, organisation, or federation of builders as an SRO. The recognition is subject to compliance with certain conditions and rules related to MahaRERA's regulatory framework. The SROs are the only ones officially recognised as representatives of developers. Agents and other intermediaries have already been banned by MahaRERA.
Representatives of SROs appointed at MahaRERA officially help their respective member promoters in the registration process. Observations and remarks made during the scrutiny are shared with these representatives who in turn assist the member promoters to get them fulfilled.
Currently, seven SROs operate under MahaRERA's recognition, including NAREDCO West Foundation, CREDAI-MCHI, CREDAI Maharashtra, Builders Association of India, Marathi Bandhkam Vyavsayik Association, Brihanmumbai Developer Association, and CREDAI-Pune. MahaRERA Chairman Manoj Saunik highlighted that project promoters anticipate seamless support from SROs during registration. He explained that although SROs are intended to bridge developers with the regulatory body, the lack of experts in crucial domains has hindered the objective.
Saunik noted that housing projects undergo rigorous scrutiny involving legal, financial, and technical assessments before obtaining a registration number. Representatives from SROs play a vital role by assisting their members during this process.
MahaRERA provides one seat from each SRO, and the new guidelines specify that representatives should be present on a rotational basis according to member requirements. The authority expects these changes to expedite the registration process while ensuring accurate guidance for developers.
A few weeks ago, MahaRERA had revised the minimum eligibility criteria for forming a SRO, for areas outside Mumbai Metropolitan Region (MMR). Now, the minimum threshold to form an SRO has been reduced from 500 to 200 projects (in total of all developer members).
MahaRERA's introduction of a two-year tenure limit for SRO representatives marks a pivotal step in ensuring transparency and efficiency in the housing project registration process. By requiring representatives to possess domain expertise, the regulator aims to mitigate delays and enhance the quality of scrutiny. This policy change not only reinforces compliance with the Real Estate (Regulation and Development) Act, 2016, but also strengthens the partnership between developers and regulatory authorities. The initiative is poised to foster a more streamlined and professional approach to real estate project registrations.
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