Your views on our suggestions on Draft Rules of RERA published by Govt of Marashtra.

[Ramesh Prabhu]

Dear All,

You may be already aware that the Central Govt has already notified the Real Estate(Regulation and Development ) Act, 2016 applicable across India except Jammu and Kashmir.

The state governments are required to notify the Rules for its implementation. The Maharashtra Govt had published the draft Rules on 8th December, 2016 inviting the suggesiont and objections. The last date is now extended for the same upto 31st December, 2016

You are requested to give your views on the following observation done by me and the suggested changes in the final rules of RERA to be notified by Govt of Maharashtra.

I have started analysing the draft rules by referring to MOFA, Mah. Hsg (Regulation And Development ) Act 2012, Real Estate (Regulation and Development ) Act, 2016 and the draft Rules of RERA of Govt of Maharashtra.

The first issue I have considered Now is about the conveyance of land and building in favour the following as provided under section 17 of the RERDA 2016 and draft rules of Mah Govt Rule No. 9  :

Observations in the Draft Rules:

(1)    The Draft Rules have been loosely drafted

(2)    The consistence regarding what is to be conveyed and when it has to be conveyed in relation to real estate project or phase wise project is lacking.

….. Therefore…the consistence of conveyance of land and building as per  the registration of real estate project or phase of real estate project with the authority need to be provided.

(3)    The conveyance can be done only to the allottees where formation of legal entities are not contemplated like a plot or stand alone bungalow with demarcated land or association of allottees like a society for a building and number of buildings in case of big layout.. which need to be registered as real estate project with  authority.. ….. So four situations in which conveyance need to be given should be clearly brought out……

(a)    In case of sub-divided plots or demarcated plots with or without structure to be given to the individual allotee

(b)   In case of conveyance of apartment as per sanctioned plan with undivided right, title and interest to the allottees as provided under Maharashtra Apartment Ownership Act, 1970..

(c)    In case the Association of allottees is registered for a  phase wise real estate The demarcated land with undivided right, title and interest in the entire land of real estate project to be conveyed to the association of allottees

(d)   In case the Apex  body or Federation to whom management of common areas to be handed over and the period within which, the same need to be handed over to be mentioned without having any right, title and interest in the land . 

Amendments suggested in the draft Rules considering the following situations to grant the conveyance of land and building by the promoter 

(1) Allottees when it is developed as bunglow plots or plotted development with undivided rights over the common area.

(2) Association of Allottees when it is developed as a layout or multiple building or as a stand alone building. or as a layout.

(3) Prescribed time for conveyance should be one month from the date of formaton of association of allotees where it is required and in other case, on receipt of occupation certificate.

(4) NOt to allow balance in the  withdrawal in the escrow account till the conveyance is done and title documents are handed over to the association of allottees.

Amendments suggested in the draft Rules is attached herewith. …….

 

( Black is as per the original draft rules published by Govt of Maharashtra, strike off is done by us to the original in black and red with underline are our suggestion to the draft rules to bring consistency in the matter of conveyance of land and building in favour of the allotees, if there is plot or is submitted under Maharashtra Apartment Ownership Act, 1970 or to the association of allottees with the building along with proportionate  divided or undivided right, title and interest of the land in the approved real estate project. The Apex or Federation is formed only to manage the common areas without having any rights over the land.)

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With Best Regards

 

CA. Ramesh S. Prabhu

Chairman, Maharashtra Societies Welfare Association

A2-302, Laram Center, S.V. Road, Opp: Railway Station

Andheri(W), Mumbai- 400 058

Tel: 9820106766/ 022- 42551414