The Maharashtra Housing (Regulation and Development) Act 2012 was accorded the Presidential assent on 21st February 2014. It became the first state in India to adopt a real estate Act. It is just the first step towards making the realty sector in India transparent, mitigating risk and making developers more accountable. If it is successful, then it might pave way for the final approval of the Real Estate Regulatory Bill.
The act is applicable to all the new and under construction projects which are yet to receive an occupancy certificate. According to the Act, it’s mandatory for developers to register their projects, disclose the property title, plans, and keep buyers updated about the project and completion status. Also it holds the developer responsible in case of delays and he might have to refund the payment received with interest and can even be fined and imprisoned. It also states that the developer is responsible for fixing defects in the building for the initial 5 years.
With a regulatory authority in place and establishment of fast-track dispute resolution mechanisms, developers and agents will also be cautious before taking buyers for a ride. It would also help keep a check on the quality of construction and project time lines. Since most of the projects suffer setbacks because of the multiple approvals required from various government authorities, this might lead to a single window approval process in the future.
Though there is a need for a regulatory body and transparency in the real estate sector, there is also a lot of work that needs to be done before the Indian realty sector gets stream lined and regularised.
source: India Property
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