To,
Principal Secretary,
Housing Department, Mantralaya,
Mumbai 400 032
Sub – Suggestions and objection on the Maharashtra Real Estate
(Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2016
Dear Sir,
As per gazette notification dated 8 December 2016 . I am sending my suggestion and objections on Maharashtra Real Estate(Regulation and Development)(Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2016
I raise my serious objection on the email id itself because the way it has been created is mischievous act . In this suggesstionsonrera@maharashtra.gov.in id spelling of suggestion deliberately ‘SS” has been put before “t” . This has been done to prevent people from giving suggestions and objections.
My suggestions to the rule are,
1)It is not new that builders have exploited homebuyer in this country since long. Most of the time individual buyers were cornered, threatened and coerced to give up their rights, silenced and intimidated. There are very few buyers who dare to lodge complaint against builders. Proposed rules also designed to prevent buyer from filling a complaint. For filing a complaint or an appeal with the Authority, a complainant will have to pay a fee of Rs 10,000. Actually in central rules fee of Rs 1,000 is stipulated. Ther is adequate provision in act to penalise frivolous complaints. Questions arise on the need for imposing a fee burden on already aggrieved complainants. Hence these fees should be waived off .
2)In model form of agreement to sale there is one very dangerous provision . If the Allottee fails to rectifies the breach or breaches mentioned by the Promoter within the period of notice then at the end of such notice period, promoter shall be entitled to terminate the Agreement and upon termination of this Agreement the Promoter, shall be at liberty to dispose of and sell the Apartment to such person and at such price as the Promoter may in his absolute discretion think fit. The notice period will of seven days and by email. And after notice period is over promoter shall be at liberty to dispose of and sell the Apartment only to such person and at such price as the Promoter may in his absolute discretion think fit. Hence there should be ample provision so that builder / promoter would not be able to mischievous or frivolous complaint of breach of agreement
3)There is more dangerous proviso ahead, that upon termination of the Agreement as aforesaid, the Promoter shall refund to the allottee within a period of six months of the termination. That too subject to adjustment and recovery of any agreed liquidated damages or any other amount which may be payable to Promoter. Promoter is entitled to do this at any time of agreement period. That means even if buyer has paid 90% of the amount promoter can terminate the agreement on any ground. And refund will be without interest. This provision should be changed and promoter builder should refund amount immediately and if payment is delayed there should interest plus heavy penalty.
4)The central rules while registering the project with authority registration fee of rupees ten per square meter for residential projects where the area of land proposed to be developed does not exceed one thousand square meters; or rupees twenty per square meter for residential projects where the area of land proposed to be developed exceeds one thousand square meters has been proposed. And for commercial or any other projects rupees fifty per square meter for where the areaof land proposed to be developed does not exceed one thousand square meters; or rupees one hundred per square meter where the area of land proposed to be developed exceeds one thousand square meters has been proposed .
However in Maharashtra rules for the same area registration fee of only one and two rupees has been proposed for residential project and no fee has been proposed for commercial projects.
Furthermore in central rules to prevent extension for completion of project double of the fee for registration has been proposed while in Maharashtra rule it has been kept as it is for registration of project. All above provisions should be like central rules only
5)To protect buyers from being deceiving by real estate agents, the central Rules mandate the revocation of registration of real estate agent in case of any default while Maharashtra rules allow fresh application for grant of registration cannot be made again only after a period of six months by such real estate agent. If such provision is allowed agents will happily allow to revoke their registration as profit made by them by deceiving innocent buyers will much more than revocation of registration. In this case agents whose licence is revoked should not be allowed to enter into same business once again
6)In central rules to prevent discrimination of allotees mandates the promoter to submit the declaration to be submitted that the promoter shall not discriminate against any allottee at the time of allotment of any apartment, plot or building, as the case may be.In Maharashtra rules this provision has not been included at all .This provision should be included in Maharashtra rules
7)Central rules mandate promoter wile registering the project with authourity to give brief details of the projects launched by the promoter in the last five years, whether already completed or being developed, as the case may be, including the current status of the said projects, any delay in its completion, details of cases pending, details of type of land and payments pending etc.
In Maharashtra rules in information related to the current status of the said projects, any delay in its completion, details of cases pending, details of type of land and payments pending etc has been deleted.
As well information related to audited balance sheet of the promoter for the preceding financial year and income tax returns of the promoter for three preceding financial years; and copy of balance sheet has also been deleted in Maharashtra rules. .These provision should be included in Maharashtra rules
8) As per central rules In case the promoter applies for withdrawal of application for registration of the project before the expiry of the period of 30 days registration fee to the extent of ten percent paid or rupees fifty thousand whichever is more, shall be retained as processing fee by the regulatory authority and the remaining amount shall be refunded to the promoter within thirty days from the date of such withdrawal. In Maharashtra rules amount of retaining money has to be decided by regulatory authority. .This provision should be included in Maharashtra rules
9) There is also ambiguity in the definition of land cost and construction cost to be withdrawn from escrow account. These ambiguities should be removed
Principal Secretary,
Housing Department, Mantralaya,
Mumbai 400 032
Sub – Suggestions and objection on the Maharashtra Real Estate
(Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2016
Dear Sir,
As per gazette notification dated 8 December 2016 . I am sending my suggestion and objections on Maharashtra Real Estate(Regulation and Development)(Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2016
I raise my serious objection on the email id itself because the way it has been created is mischievous act . In this suggesstionsonrera@maharashtra.gov.in id spelling of suggestion deliberately ‘SS” has been put before “t” . This has been done to prevent people from giving suggestions and objections.
My suggestions to the rule are,
1)It is not new that builders have exploited homebuyer in this country since long. Most of the time individual buyers were cornered, threatened and coerced to give up their rights, silenced and intimidated. There are very few buyers who dare to lodge complaint against builders. Proposed rules also designed to prevent buyer from filling a complaint. For filing a complaint or an appeal with the Authority, a complainant will have to pay a fee of Rs 10,000. Actually in central rules fee of Rs 1,000 is stipulated. Ther is adequate provision in act to penalise frivolous complaints. Questions arise on the need for imposing a fee burden on already aggrieved complainants. Hence these fees should be waived off .
2)In model form of agreement to sale there is one very dangerous provision . If the Allottee fails to rectifies the breach or breaches mentioned by the Promoter within the period of notice then at the end of such notice period, promoter shall be entitled to terminate the Agreement and upon termination of this Agreement the Promoter, shall be at liberty to dispose of and sell the Apartment to such person and at such price as the Promoter may in his absolute discretion think fit. The notice period will of seven days and by email. And after notice period is over promoter shall be at liberty to dispose of and sell the Apartment only to such person and at such price as the Promoter may in his absolute discretion think fit. Hence there should be ample provision so that builder / promoter would not be able to mischievous or frivolous complaint of breach of agreement
3)There is more dangerous proviso ahead, that upon termination of the Agreement as aforesaid, the Promoter shall refund to the allottee within a period of six months of the termination. That too subject to adjustment and recovery of any agreed liquidated damages or any other amount which may be payable to Promoter. Promoter is entitled to do this at any time of agreement period. That means even if buyer has paid 90% of the amount promoter can terminate the agreement on any ground. And refund will be without interest. This provision should be changed and promoter builder should refund amount immediately and if payment is delayed there should interest plus heavy penalty.
4)The central rules while registering the project with authority registration fee of rupees ten per square meter for residential projects where the area of land proposed to be developed does not exceed one thousand square meters; or rupees twenty per square meter for residential projects where the area of land proposed to be developed exceeds one thousand square meters has been proposed. And for commercial or any other projects rupees fifty per square meter for where the areaof land proposed to be developed does not exceed one thousand square meters; or rupees one hundred per square meter where the area of land proposed to be developed exceeds one thousand square meters has been proposed .
However in Maharashtra rules for the same area registration fee of only one and two rupees has been proposed for residential project and no fee has been proposed for commercial projects.
Furthermore in central rules to prevent extension for completion of project double of the fee for registration has been proposed while in Maharashtra rule it has been kept as it is for registration of project. All above provisions should be like central rules only
5)To protect buyers from being deceiving by real estate agents, the central Rules mandate the revocation of registration of real estate agent in case of any default while Maharashtra rules allow fresh application for grant of registration cannot be made again only after a period of six months by such real estate agent. If such provision is allowed agents will happily allow to revoke their registration as profit made by them by deceiving innocent buyers will much more than revocation of registration. In this case agents whose licence is revoked should not be allowed to enter into same business once again
6)In central rules to prevent discrimination of allotees mandates the promoter to submit the declaration to be submitted that the promoter shall not discriminate against any allottee at the time of allotment of any apartment, plot or building, as the case may be.In Maharashtra rules this provision has not been included at all .This provision should be included in Maharashtra rules
7)Central rules mandate promoter wile registering the project with authourity to give brief details of the projects launched by the promoter in the last five years, whether already completed or being developed, as the case may be, including the current status of the said projects, any delay in its completion, details of cases pending, details of type of land and payments pending etc.
In Maharashtra rules in information related to the current status of the said projects, any delay in its completion, details of cases pending, details of type of land and payments pending etc has been deleted.
As well information related to audited balance sheet of the promoter for the preceding financial year and income tax returns of the promoter for three preceding financial years; and copy of balance sheet has also been deleted in Maharashtra rules. .These provision should be included in Maharashtra rules
8) As per central rules In case the promoter applies for withdrawal of application for registration of the project before the expiry of the period of 30 days registration fee to the extent of ten percent paid or rupees fifty thousand whichever is more, shall be retained as processing fee by the regulatory authority and the remaining amount shall be refunded to the promoter within thirty days from the date of such withdrawal. In Maharashtra rules amount of retaining money has to be decided by regulatory authority. .This provision should be included in Maharashtra rules
9) There is also ambiguity in the definition of land cost and construction cost to be withdrawn from escrow account. These ambiguities should be removed
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