MahaRERA move draws ire of homebuyers’ lobby
MahaRERA has decided to register realty developers and project promoters as self-regulatory organisations with the authority, and granted its first certification to the National Real Estate Development Council.
In a letter to MahaRERA, the Forum for People’s Collective Efforts (FPCE) said the Real Estate (Regulation and Development) Act, 2016, (RERA) does not provide any provision to set up or register SROs of real estate developers. ET has seen a copy of the letter sent last week.
Earlier this month, MahaRERA created a mechanism to register SROs and granted its first certification to the National Real Estate Development Council (Naredco), a developers’ body, as an SRO for promoters whose projects are registered with the state authority.
SRO is expected to encourage its members to comply with the provisions of the RERA Act, rules, orders and circulars issued by MahaRERA. It will be responsible for carrying out awareness and education activities among its members.
“What is the basis for MahaRERA to assume that even if promoters are told by SROs, they will abide by their directions? Does MahaRERA consider SROs to be more effective and powerful than itself that it believes that promoters will listen to SROs, but not to MahaRERA?” the FPCE letter said.
While announcing the decision to register realty developers and project promoters as SROs, the regulator had said the SROs will help ensure greater professionalism among developer, bring consistency in their practices, help in enforcement of code of conduct and discourage fraud.
“The builder-bureaucratic-political nexus has been responsible for virtually crippled justice delivery for troubled homebuyers,” said FPCE president Abhay Upadhyay, adding that if builder bodies are given registration by MahaRERA, it will create havoc.