Builders in Maharashtra still await clarity on September 20 circular

February 04, 2020

A revenue department circular of September 20, 2019, insists on registration of such projects with RERA before registering them with sub-registrar offices in the state.

Many developers already in receipt of occupancy certificate are finding it difficult to register their properties in the state for the past five months for want of MahaRERA registration, in contravention of the provisions of the Real Estate (Regulation and Development) Act, 2016.

As per the rules, projects with occupancy certificates (OC) are not required to register with Real Estate Regulatory Authority (RERA). But, a revenue department circular of September 20, 2019, insists on registration of such projects with RERA before registering them with sub-registrar offices in the state.

Against this backdrop, the Confederation of Real Estate Developers Association of India (Credai) has demanded the withdrawal of the revenue department’s circular to check confusion. “When the RERA rules state that any project having completion/occupation certificate before the registration of sale deed is exempted from RERA registration, the revenue department circular is uncalled for as it only creates more confusion,” state Credai president Rajiv Parikh said.

He said the developers’ body had held numerous meeting with the ministers and government officials for the last five months, requesting them to withdraw the circular. “We will meet revenue minister Balasaheb Thorat next week, seeking the withdrawal of the circular for the benefit of developers and citizens at large. Due to this confusing circular, developers across the state are severely affected,” he said, adding that the body had raised the issue with NCP chief Sharad Pawar too.

Revenue minister Balasaheb Thorat said he was expecting the details within a fortnight. “I have directed them and hopefully they will revert,’’ he said.

RERA & revenue department not on same page

Basically, the entire confusion and chaos boils down to two bodies — the RERA and the revenue department. While RERA officials have clarified that projects in receipt of OC do not require RERA registration, the revenue department officials insist on RERA registration, citing the last year circular of the erstwhile state government. “Unless the circular is withdrawn, our hands are tied,” a senior official of the registration department said.

As the real estate sector is still facing challenges, the prevailing confusion is counter-productive. “We went twice to the registration department with the builder for registration of our project, but had to return empty-handed,” a homebuyer said, whose project is in receipt of OC.

To iron out issues

A senior revenue department official said there were some technical issues that needed to be ironed out. “A joint meeting was held recently and the revenue minister has directed (all those concerned) to resolve the issue at the earliest,” he said.

If a builder or developer has readied the project with his/her own funds and is in receipt of the OC, does s/he still need to register under RERA? When asked about it, he said “We have sought clarification for on this too from the housing department, which will further send it to RERA.”

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Source : realty.economictimes.indiatimes.com