Being one of the most active states in implementing RERA rules across the country, Madhya Pradesh regulatory authority has granted a sizeable number of RERA registration certificates to ongoing projects and real estate agents in the state. 99acres.com gives you a brief outline of the current status of RERA rules in Madhya Pradesh.
Madhya Pradesh had notified the Real Estate (Regulation and Development) Act (RERA) rules on October 22, 2016. The state has also launched its official RERA portal (rera.mp.gov.in) to address grievances of homebuyers against errant developers without leaving their houses. Since the legislation was rolled out on May 1, almost 720 complaints have been registered, of which most of them have been resolved.
Status of registered projects and agents
Several months after the implementation of RERA, Madhya Pradesh has emerged as one of most active states in the execution of new real estate norms. With the launch of an online portal and establishment of a permanent regulatory authority, the number of registration of projects under the Act has grown tremendously. As per the Madhya Pradesh RERA website, 1,555 real estate projects have been successfully registered with the state regulator till date. A total number of 1,137 promoters have been also registered with Madhya Pradesh RERA.
Meanwhile, 231 real estate agents have been granted registration numbers, which will remain valid for five years.
List of Madhya Pradesh RERA approved projects - Click to Download
List of Madhya Pradesh RERA approved agents - Click to Download
List of Madhya Pradesh RERA approved promoters - Click to Download
About 2000 applications for registration have been received from the developers, of which most of them have been granted with RERA registration numbers. Officials have stated that the remaining projects have some shortcomings, which have been already shared with the applicants. The registration will be done as soon as builders furnish the missing details.
Madhya Pradesh RERA is currently clearing about 25 projects per day. Of all filed applications, about 80 percent of them are from urban areas and the remaining, 20 percent, are from the rural areas. Majority of project registration applications in urban locales are filed from these centres - Bhopal and Indore. In Ujjain, almost 50 projects have got RERA registration certificate.
Out of received 720 complaints from homebuyers, over 400 cases are being heard by the state regulator. Final decisions have been given in about 40 complaints. In several cases, the authority has imposed penalties for delayed delivery. A dozen of complaints have been filed by aggrieved buyers in Ujjain against developers with the state regulatory authority.
Benefits of RERA implementation
- Timely delivery: Any contract signed between Madhya Pradesh Housing Board/developers and allottees must be fulfilled in time. Under RERA regime, properties shall be constructed within the stipulated time, weeding out unnecessary delays and cost escalations.
- Guarantee: All properties registered under RERA have a five year guarantee promising sound construction quality.
- No misleading advertisements: Marketing and advertising of realty projects can be done only after the successful completion of registration with the regulator.
Key obligations for builders, promoters & developers
Madhya Pradesh government has adopted the RERA rules drafted by the central government. It requires that any project with eight units or plot size more than 500 sq m must be registered with the regulatory authority. As per Madhya Pradesh RERA norms, the promoter must disclose the following for each eligible project:
- Original approved layout plan along with specifications promised to the allottees
- Total amount of money collected from the allottees and utilised for activities involved in project completion
- Status of the project with photographic evidence. If the project is delayed, a revised time schedule with the reasons for delay shall be issued.
- Size of the apartments based on carpet area
- Bank details of the escrow account having 70 percent of the total amount collected from the buyers
The Madhya Pradesh RERA mandates that all real estate developers and projects in the state are required to enroll on the official RERA site by July 31, 2017. A mode of online registration has been provided to expedite the registration process. Every eligible real estate project remaining incomplete by April 30, 2017 or whose completion certificate is not issued will be included in the ambit of RERA.
Under Madhya Pradesh RERA rules, all real estate developers, promoters, and agents are required to furnish the relevant documents for registration of their projects with the state regulatory authority. Some of the key documents are:
- Passport size photograph of promoters
- Copy of Aadhar card and PAN card of promoters - individual or partners
- Audited profit and loss statement along with Income Tax Returns (ITRs) for the last three financial years
- Size of open and covered parking spaces proposed in the project
- Details of any dispute/litigation on the land title
- If the developer is not the owner of the land, he needs to furnish a copy of the land agreement
Apart from these documents, a certain amount will be charged while registering the real estate projects under RERA. The registration amount would be calculated on the basis of the following:
- For new projects, Rs 10 multiplied by the permissible Floor Area Ratio (FAR) per sq m for residential projects, including plots for common recreational facilities
- For constructed residential projects, Rs 10 per sq m of the carpet area of the residential properties and common facilities
- For commercial units, Rs 20 multiplied by the permissible Floor Area Ratio per sq m for commercial units
Rejection of application
In case the developer applies for withdrawal of registration of the project or the application is rejected, the registration fee would be refunded within 30 days, after deducting 10 percent.
If all details are furnished correctly as per directed guidelines, a registration certificate will be issued to the developer, which shall be valid for five years.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.