The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued an order requiring real estate agents with an annual turnover of over Rs 20 lakh to disclose information about their principal officer and designated director. This is in line with the Prevention of Money Laundering Act, 2002 (PMLA) and Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (PMLR). According to a MahaRERA official, agents are required to provide information about their transactions, including the fees they charge as well.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued an order requiring real estate agents with an annual turnover of over Rs 20 lakh to disclose information about their principal officer and designated director. This is in line with the Prevention of Money Laundering Act, 2002 (PMLA) and Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (PMLR).
Real estate agents have been classified as "reporting entities" under the PMLA Act, which requires the entity to maintain records of its business. A "reporting entity" includes a banking company, a financial institution, an intermediary, or a person engaged in a designated business or profession. The principal officer will serve as a central reference point to report suspicious transactions and identify potentially suspicious activities, while the designated director will ensure compliance with the obligations imposed under PMLA and PMLR.
Real estate agents are also required to upload a progress report every six months, which will include details of booking and sales transactions of flats, shops, plots, apartments, or buildings carried out by the agents. The report will also contain details of projects where the promoter has designated the agent and mention the fees charged for booking and sale transactions. Except for the fees charged, all other details will be available for public viewing to facilitate transparency and enable home buyers to make informed choices.
According to a MahaRERA official, agents are required to provide information about their transactions, including the fees they charge, to fulfil their obligations under the PMLA. Many home buyers depend on agents while purchasing a property. Therefore, uploading the details of each agent will help home buyers check their credentials and make an informed choice.
Under the Real Estate (Regulation and Development) Act, real estate agents must be registered with MahaRERA. The Act also mandates that every real estate agent registered with MahaRERA must maintain and preserve books of accounts, records, and documents. The rules prescribe that agents maintain and preserve books of accounts, records, and documents required under the provisions of the Income Tax Act, 1961, Companies Act, 2013, or any other applicable law.
Overall, the MahaRERA order to disclose information about principal officers and designated directors will improve the quality of real estate services and protect home buyers from fraudulent activities. By maintaining records and making them available for public viewing, the move will promote transparency and accountability in the real estate industry.
Advertisement
Facebook
Whatsapp
