The Real Estate (Regulation and Development) Act, 2016 has ushered in a higher level of transparency, accountability and protection for the Indian real estate market. MahaRERA is one of the most robust regulatory structures in the country as per the implementation of the Act in Maharashtra. Yet, after all these years of enforcement, there are still many developers and promoters that are still flying blind as a result of old thinking and false beliefs.
Such misconceptions can cause expensive errors, delays, notices, penalties and even damage to reputation. With the current regulatory landscape, it's more than a question of being legally compliant; it is a necessity for a business to be MahaRERA compliant.
Many promoters think that their job is done when a project is registered. Others think that micro projects do not need to be compliant or that information can be corrected afterwards without consequences. Unfortunately, these myths can be a major liability for the developer when it comes to regulatory risk.
In this article, we will address 5 common misconceptions about MahaRERA Compliance and provide you with the facts you need to know as a developer to remain MahaRERA Compliant, penalty-free, and retain the buyer's trust.
MahaRERA Compliance becomes a significant part of real estate project management before diving into the myths. Before diving into the myths, it's important to understand why MahaRERA Compliance has become a crucial aspect of real estate project management.
MahaRERA tracks project disclosures, quarterly updates, approvals, construction progress, financial statements and project timelines on a regular basis. If any information provided on the MahaRERA portal is inconsistent with the project then it may lead to scrutiny.
By ensuring MahaRERA Compliance, developers can:
As regulations become more stringent, proactive MahaRERA Compliance has become a must for sustainable real estate development.
Many developers believe that the registration of a project is the compliance task completed and that they don't have to take any further action.
In fact, MahaRERA Compliance is a continuous process from the inception of a project through to its completion.
Whenever there is:
The developer shall update the information, as applicable, on the MahaRERA portal.
Not reporting these changes could be considered a compliance breach. The information provided on the portal should accurately reflect the status of the project at all times, according to the regulatory authorities.
Many developers incorrectly withhold updates, thinking that they can inform users of the changes later. If not, though, then there could be notices and a greater degree of scrutiny from authorities if disclosure is delayed.
Continuous monitoring and timely updates of project information are crucial for successful implementation of MahaRERA Compliance as well as when the information changes.
The process of project registration is just the start. The continuous disclosure is an integral element of MahaRERA Compliance.
Some of the most significant duties under MahaRERA Compliance are Quarterly Progress Reports.
But many promoters believe that reports can be filed at the convenience of the promoter during the quarter.
This assumption is incorrect.
MahaRERA mandates Quarterly Progress Reports from the promoters to report the progress of the projects. These reports will offer transparency over:
Failure to submit reports on time may lead to:
Late QPRs are seen as indicators of weak governance and non-compliance.
To ensure effective MahaRERA Compliance, the following points need to be taken into consideration by the developers:
Timely reporting reflects a commitment to transparency and reinforces overall MahaRERA Compliance practices.
Many developers think there is no need to comply with a strict set of rules unless the development is large and in a town or township and high-rise.
It is one of the most harmful misconceptions about MahaRERA Compliance.
Projects with the following characteristics:
Typically need to be RERA registered.
This could potentially include relatively small residential projects, villa projects and boutique housing schemes.
When the authorities spot unregistered projects, the problems that developers face are often due to their misconception of exemption.
Ignoring MahaRERA Compliance requirements can result in:
The obligations for compliance do not depend on project size. Eligibility should always be carefully reviewed prior to launch.
Avoid assuming exemption due to the project's size. Evaluation is a crucial aspect of any MahaRERA Compliance.
Many developers think that it is okay if it is not correct data uploaded on the portal then they can just update them later without consequences.
But, there is a problem with this method of approach – it is highly subject to compliance risk.
The MahaRERA portal is a public record. The information displayed there is used by buyers, investors, consultants, lenders, and regulatory authorities.
Common errors include:
These inconsistencies can cause:
One of the key pillars of MahaRERA Compliance is keeping accurate records.
It is best for developers to have robust internal verification systems in place before they post project information online because they can help them avoid problems later.
Proactive correction and verification result in better MahaRERA Compliance and low risk of regulatory actions.
Another common myth is that compliance activities come into the picture once one gets a notice from authorities.
A reactive approach can frequently result in needless problems.
Regulators want developers to keep maintaining MahaRERA Compliance even if a notice is not issued.
Delaying until a compliance issue occurs can lead to:
Properly developed businesses view compliance as a part of the business, not a compliance burden.
They regularly review:
Continuous monitoring can help developers proactively detect and resolve potential issues before they become significant problems.
Prevention is the best approach to MahaRERA Compliance.
Failure to comply with MahaRERA regulations can result in a variety of difficulties for developers, such as:
Show-cause notices for failure to comply may be issued by authorities.
Non-compliance can result in substantial financial liabilities.
Non-compliance issues can cause project delays, including those for approvals and extensions.
Any compliance issues that have to be disclosed to the public could cause loss of sales and buyer confidence.
Projects that have multiple compliance issues may be investigated more thoroughly.
The risks emphasize the need to have strong MahaRERA Compliance systems in place during the project's entire life cycle.
The following practices should be implemented to reduce the regulatory risks:
Keep track of track filing deadlines, approvals, renewals and reporting requirements.
Examine project records on a regular basis for discrepancies.
Verify that all uploaded information is accurate to approved documents.
Timeliness of reporting is an important aspect of MahaRERA Compliance.
Compliance professionals can contribute to the management of complex regulatory requirements and to minimize risk.
Keep records of approvals, plans, financial statements and correspondence in an organized manner.
These practices will help the developer enhance MahaRERA Compliance and increase operational efficiency.
It can be time-consuming and complicated to handle regulatory requirements. This is where ReraOne can come in handy with its end-to-end support.
Our experts help developers in the following ways:
Developers can now concentrate on the development process and complete MahaRERA Compliance with the support of professionals.
The real estate industry is getting more open and regulated. Those who continue to make outdated assumptions may be subjected to notices, penalties, project delays and reputational problems.
As we've seen, MahaRERA Compliance is not a one-time activity. It's something that needs to be monitored on an ongoing basis, disclosed in a timely manner, reported correctly and managed proactively during the project life cycle.
Promoters can avoid expensive errors and preserve positive regulatory relationships by because of the realities behind these common myths.
Whether it's filing QPR, project updates, registration duties, or disclosure requirements, proactive MahaRERA Compliance is the key to safeguarding your project and building the confidence of the building buyer.
ReraOne offers all the Rera Compliance solutions to developers in Maharashtra, including MahaRERA Compliance.
We help you stay compliant with project registration and QPR filing, project extensions, and regulatory advisory.
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