A unique housing regulator for Maharashtra
Maharashtra government is all set to have a first-of-its-kind housing regulator. Orders can be passed by the regulatory body so that 10 per cent of the total project can be transferred to buyers who can sell it further in the market to cross-subsidise the construction cost.
To achieve this, builders will not be allowed to sell at least 10 per cent of their total apartments. These will be called ‘retained flats’ until the construction is finished and occupation certificate (OC) for the project is procured. Maharashtra Housing (Regulation and Development) Act 2012 has this and other similar safeguards. The act has received presidential assent this week, making Maharashtra the country’s first state to have in place a regulator to rein in the realty sector.
The regulatory body will have the powers of a civil court and can sentence errant developers to a prison term of up to three years and impose fines of up to Rs 1 crore. All new and under-construction residential, commercial and retail projects that are yet to get an OC will come under the ambit of the act. Developers will be required to update the projects on the website of the regulatory authority and update all plans and approvals from time to time. Without this requisite they cannot sell or market their projects.
The Act is the result of the proposal deliberated upon five years ago. The state act was passed by state legislature in July 2012, since then the central government has been deliberating whether to go ahead with it.
The regulatory authority will be headed by a person of the rank of a principal secretary. In case anyone is dissatisfied by authority’s ruling, Housing Appellate Tribunal chaired by a serving or retired judge of High court, can be approached. The cases will have to be disposed of within three months at each level.
Source: Indian Express
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