Maharashtra: Real Estate Fluctuate Good or Harmful For The Economy?

real estate

In 2021, MahaRERA deems 407 projects ‘lapsed’ in the state

MahaRERA, the state’s real estate authority, deemed 407 projects “lapsed” in 2021 after their registration validity expired. In the Aurangabad division alone, there are roughly 23 projects on the ‘lapsed’ list. A promoter is prohibited from advertising, marketing, booking, selling or offering for sale, or inviting people to purchase any plot, apartment, or building in any of these projects, according to the rules.

Buyers should examine the MahaRERA database before acquiring property, said to consumer rights campaigner Vivek Velankar. Also, there has to be clear clarification on how customers who reserved flasks or houses before the launch or pre-launch stage of a project may simply back out. According to him, MahaRERA should compel promoters to restore customers’ money with interest.

When approached, the office-bearers of the Confederation of Real Estate Developers Association of India (Credai) stated they were thoroughly scrutinising the 407 projects in question and finding flaws. The Credai is working with the authorities to implement Sections 15 and 7 of the MahaRERA Act, which allows another developer to take over a project and finish it so that the purchasers may move in. “We are dedicated to finding a solution to these projects and delivering houses to those who have invested in them,” stated Manish Jain, vice-president of Credai (Pune Metro).

The MahaRERA took effect on May 1, 2017. According to Credai authorities, Maharastra was one of the few states to bring ongoing projects under the Act, with the majority of these 407 projects dating back to before MahaRERA and being classed as “ongoing” projects.

MahaRERA projects may receive property cards in the near future

A top revenue official said on Wednesday that the initiative to distribute property cards to flat owners might begin soon with MahaRERA-registered developments. In 2019, the state cabinet approved a plan to issue separate property cards to flats (vertical properties). Property cards containing specifics of carpet areas, amenity space, bank loan information, and a 7/12 extract of the land were scheduled to be sent to all apartment owners.

The proposal, however, garnered several ideas and concerns, prompting the formation of a committee to provide recommendations to the state prior to the scheme’s implementation. The goal was to chart vertical expansion in cities and rural areas while also keeping a separate record of rights and registration for individual flats and units. The government has received the recommendations of the committee for vertical property cards, which suggests that the plan be implemented in stages. Maharashtra Real Estate Regulatory Authority (MahaRERA) authorities are being consulted. The ultimate decision will be made by the government, according to the official. Property cards for urban areas and 7/11 extracts for rural regions are issued by the state and define an individual’s or several people’s ownership rights. However. There is no record that demonstrates a person’s ownership of a flat in a building established on a specific plot.

“Keeping the Maharashtra Land Revenue Code, Record of Rights and Registers for Apartments and Buildings Rules in mind, the revenue department decided to include these into the Maharashtra Land Revenue Code, 1966.” This enables the state to issue a property card to anybody who owns a flat. Maharashtra has around 56 lakh plot property cards and 2.5 crore 7/12 extracts. However, there is no record of vertical properties being built on these areas, such as apartments or commercial complexes,” an official stated.

Maharashtra repealed ULCA

The Maharashtra government and builders may battle over notifications issued under the ULCA, which was repealed earlier this year. Some state governments have started sending ‘demand letters’ to developers, requesting that they pay exorbitant premiums under the abolished Urban Land Ceiling Act (ULCA) for real estate projects granted between 2007 and 2019.

In Mumbai, Pune, and other Maharashtra cities, which make up the country’s most costly real estate markets, a fight is building between the state government and huge developers. Some state governments have started sending ‘demand letters’ to developers, requesting that they pay exorbitant charges under the abolished Urban Land Ceiling (ULCA) for real estate projects granted between 2007 and 2019. The rule, which set a limit on the amount of unoccupied land that may be held in metropolitan areas, went into force in the mid-’70s with the goal of reducing land concentration, protecting farmers, and addressing inequality. The ULC Repeal Act was created by the national government in 1999 in response to complaints that the legislation had achieved nothing, and the Maharashtra government approved it in 2007.

However, owing to a court judgement, a provision in the ULCA that permitted a state government to exclude unoccupied property from ceiling limitations provided certain circumstances were met lingered as a’saving clause’ long after the Act was repealed. Multiple lawsuits followed the invocation of this provision.

The Devendra Fadnavis administration abandoned the criteria, which landowners argued were much too strict, in favour of a premium price to be paid to the state every time there is a transfer of property, acquisition of a development right, or change in land use as part of a one-time settlement programme. The settlement offer was in keeping with the Justice Sri Krishna committee’s recommendations, which was formed at the Supreme Court’s request. According to a new series of notifications, the developer must pay a premium at 2019 premium rates for projects approved after 2007, but before Maharashtra abolished the rule in 2019.

“The stakes are really high, reaching into hundreds of crores, and there is a lot of property involved. Builders will undoubtedly contest the state’s decision to apply the legislation retroactively. The 2019 settlement circular does not apply to projects approved before to that year. Many of these projects have been finished, with OC granted and the building handed over to the organisation… So, who will foot the bill? “a top executive from a major developer remarked “The Pune municipality has issued notifications, and we understand that demand letters will be served shortly by Mumbai and others,” he added.

According to Niranjan Hiranandani, national vice chairman of NAREDCO, a trade association for real estate developers, ” “In my opinion, they should not charge at all, since there is no reason to do so and become needlessly costly in terms of land costs and other difficulties. As a result, I would highly advise the state administration to reconsider this.” ” He argues that, because the federal and state governments are taking proactive measures in the housing sector, the industry should communicate its concerns to the state rather than pursuing legal action.