MahaRERA: The Importance of Due Diligence in Real Estate Projects
Maharashtra Real Estate Regulatory Authority (MahaRERA) emphasizes the need for builders to conduct thorough due diligence before declaring possession dates, taking into account market conditions.
MahareraReal EstateDue DiligenceMarket ConditionsRera 2016Real Estate NewsJul 11, 2024
The authority noted that the project was incomplete, as the builder had not uploaded the Occupancy Certificate (OC) on the MahaRERA website. This led to a delay in handing over possession of the flat to the homebuyer. The authority referred to Section 18(1) of the Real Estate Regulation and Development Act 2016, which states that if a builder fails to complete or is unable to give possession of an apartment, plot, or building, they shall be liable to return the amount received by them with interest.
The authority observed that builders, being aware of market conditions, are expected to finalize the possession date of the project by conducting thorough due diligence. Section 18 of RERA, 2016, does not provide any waivers or exceptions to builders. Therefore, the authority directed the builder to pay interest to the homebuyer from the possession date stipulated in the agreement until the date the occupancy certificate is received by the builder.
This judgment sets a precedent for builders to be more responsible and transparent in their projects. It highlights the importance of due diligence in real estate projects, taking into account market conditions and compliance with regulatory requirements.
Maharashtra Real Estate Regulatory Authority (MahaRERA) was established in 2017 to regulate and promote the real estate sector in Maharashtra. The authority is responsible for ensuring that builders comply with the provisions of the Real Estate Regulation and Development Act 2016.
Om Satyam Niwas CHS Ltd is a real estate developer based in Maharashtra. The company has been involved in several real estate projects in the state.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for Maharashtra Real Estate Regulatory Authority, established in 2017 to regulate and promote the real estate sector in Maharashtra.
What is the importance of due diligence in real estate projects?
Due diligence is crucial in real estate projects as it helps builders to finalize the possession date of the project, taking into account market conditions and compliance with regulatory requirements.
What is Section 18 of RERA 2016?
Section 18 of RERA 2016 states that if a builder fails to complete or is unable to give possession of an apartment, plot, or building, they shall be liable to return the amount received by them with interest.
What is the role of MahaRERA in regulating the real estate sector?
MahaRERA is responsible for ensuring that builders comply with the provisions of the Real Estate Regulation and Development Act 2016, and for promoting transparency and accountability in the sector.
What is the significance of this judgment for homebuyers?
This judgment emphasizes the importance of due diligence in real estate projects and holds builders accountable for delayed possessions, providing relief to homebuyers who have been affected by such delays.
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