The Maharashtra state government has decided to appoint a housing regulator after receiving a nod from the Centre. Once implemented, it will protect the interest of both home buyers as well as developers.
Maharashtra is all set to become the first state to implement a housing regulator, with the Real Estate Regulation and Development Bill still pending clearance in Rajya Sabha after receiving approval from the Cabinet. According to recent news, Chief Minister Devendra Fadnavis announced that a housing regulator will be appointed by February end or March first week.
Experts opine that disputes relating to the housing sector resolved by the quasi-judicial body are not only going to benefit buyers but developers as well.
Once implemented, the housing regulator is expected to address several issues that have crippled the housing sector in the state for years. For instance, Illegal constructions in peripheral areas of Maharashtra, particularly in Mumbai and Navi Mumbai, have been on the rise in the recent years due to the absence of a law for registration of local real estate developers. It is quite easy for a landowner to construct buildings without seeking any approval. Many a times buyers have ended up investing in projects that have no legal documents or approvals. Eventually, these projects get stuck or delayed with the buyers losing out their money and time over court battles.
The formation of the housing regulator will be an answer to these pertaining issues. Under this, every developer/builder is required to obtain a license for each project. After receiving the license, the builder has to furnish details of ownership, project plans, and layouts, developmental schedule, land status, approval from local government, Pro-forma agreements, a list containing names and proper addresses of real estate agents, contractors, architects, and engineers related or working on the project. All this information has to be authenticated by the regulator. This way the regulator would be able to help buyers consider only those developers who are registered and have a substantial record of timely completions and standard quality construction.
In addition, a Real Estate Tribunal would also be set up to handle cases related to the real estate industry. It would ensure quicker trials and justice.
Apart from buyers, developers have also been at the receiving end of the irregularities that are so common in the Indian real estate sector. For instance, the long and tedious procedure of getting multiple approvals for their projects has been a long pending concern for the sector. The regulator is expected to streamline this process too by implementing a single window clearance system.
However, industry experts add a caveat. The bill has been only on papers. It still needs to be seen as to when the Maharashtra government would be able to set up the body as there will be a lot of suggestions from developers on the inclusions and exclusions. Thus, at present, the deadline of March seems to be a little unrealistic. However, once implemented, it will make a positive impact on Maharashtra real estate in a long run, says, Amit Jain of Fourth Dimension Realty, Navi Mumbai.
Thus, even though the announcement by the Maharashtra CM signals a positive intent, we can only hope that the regulator becomes a reality soon. After all, implementation is the key.
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.