Snapshot Of Recent MahaRERA Circulars July – September 2021 :


The Maharashtra Real Estate Regulatory Authority (“MahaRERA“) has issued various circulars from time to time to bring clarity on the provisions and standard operating procedure under the Real Estate Regulation and Development Act, 2016 (“RERA Act“). In recent times, several important circulars have been issued dealing with provisions across various sections of the RERA Act, including updation of the details of the real estate projects, procedural compliances for change of promoter of real estate project, timelines for execution of registered conveyance of the real estate project to association of allottees.

The key provisions of important circulars issued from the month of July 2021 till date are highlighted as below:

Circular No. 24A of 2021 dated 23rd July 2021:

Vide a Circular No. 11 dated 8th November 2017, MahaRERA had issued certain guidelines pertaining to Section 15 of the RERA Act, for the procedure to be followed for change of promoter of a real estate project.

The Circular No. 24A provides further clarification in respect thereof by introducing 3 (three) annexures under the said Circular as follows:

Annexure A provides a format for the letter to be submitted to MahaRERA in the event the transfer of promoter’s rights is effected by third parties, viz. financial institution/creditors or by operation of law or by way of enforcing of the security, if such security interest is disclosed on the RERA Website.

Annexure B comprises of the list of documents to be submitted by the intending purchaser/ third party to MahaRERA supplementing the application for transfer of rights by the promoter.

Annexure C provides the format for the declaration to be submitted by the purchaser of the rights of the Promoter/ third party to MahaRERA, when the transfer is initiated by the promoter.

Circular No. 18 of 2021 dated 28th July 2021- Quarterly Updations:

Under the provisions of Section 11 of the RERA Act read with Rule 20 of the rules thereunder, every promoter is required to update the details of their registered projects on a quarterly basis.

The circular dated 28th July 2021 provides further steps to the process of the updation of the real estate project, viz. filing Quarterly Progress Reports (QPR) as per financial quarters within 7 (seven) days of the respective quarter end which would include details such as incremental changes in various building plan approvals, the present status of the project, filing certain forms as detailed therein, status of the association of allottees and the conveyance, if applicable and any changes to the project professionals or any detail of the project.

This circular also lays down the following consequences for non-filing of QPRs:

  1. A web-generated notice will be sent to the promoter within 10(ten) days. Such notice will also be available for public viewing on the MahaRERA web-portal of the project.
  2. On failure to comply within 15 (fifteen) days, the promoter will be called for a hearing before the Chief Planning Officer, MahaRERA who on the basis of merits will put the case to the authority for penal action;
  3. Until the QPR is filed, the promoter will be restricted from availing any other service from MahaRERA including correction, project extension etc.

Circular No. 20 of 2021 dated 28th July 2021- Execution of Conveyance Deed within 3 months of the occupation certificate:

MahaRERA had clarified vide Resolution No. 2/4/2017 dated 20th June 2017 that the Agreement for Sale executed between promoters and allottees post 1st May 2017 will be governed by Section 17 of the RERA Act and the registered conveyance deed in respect of such real estate project should be executed within 3 (three) months from the date of issue of the occupation certificate. ok

In furtherance of the same, the circular dated 28th July 2021 states that immediately after making an application for obtaining the occupation certificate to the competent authority, the promoter shall submit the quarterly up-to-date status of the project along with the quarterly up-to-date status report regarding steps initiated by the promoter for execution of the registered conveyance deed. The circular states that the promoter will execute the registered conveyance deed within the time as stipulated under Section 17 of the RERA Act.

In the event the promoter fails to comply with the aforesaid provisions, the non-compliance will be considered as violation of provisions of the RERA Act, rules and regulations made thereunder and action will be taken against the promoter.

Circular No. 36 of 2021 dated 30th July 2021- Marking of open and covered parking spaces, garages:

Typically, details of parking spaces such as location are not provided in the agreements for sale executed with allottees. When flats are completed and handover, an allotment letter identifying the exact parking space is usually given to the allottee. This practice will now change in view of Circular No. 36

With respect to parking spaces and garages of real estate projects, MahaRERA has provided certain clarifications viz.:

  1. Open parking areas are provided free of FSI and promoters are not entitled to sell / allot open parking areas for monetary consideration;
  2. Open parking areas, garage and covered parking space should be specifically marked and numbered at the real estate project site in accordance and as per approved / sanctioned plans and tagged to the apartment to which it is allotted; and
  3. In the event the Garage and/or covered parking space is sold/allotted for monetary consideration, the Agreement for Sale should include the type, numbers and size and location of such garage or covered parking space. Further, the plan showing the exact location / allotment along with the particulars as aforesaid should be annexed to the Agreement for Sale.

In the event the promoter fails to comply with the aforesaid provisions, the non-compliance will be considered as violation of provisions of the RERA Act, rules and regulations made thereunder and action will be taken against the promoter.

Circular No. 21 of 2021 dated 6th August 2021- COVID-19 second wave extension:

In exercise of the powers under Section 37 read with Section 34(a), 34(f) and 34(g) of the RERA Act, MahaRERA has declared a force majeure period of 6 (six) months from 15th April 2021 to 14th October 2021. Further, certain directions have been passed in relation to the same viz:

  1. For all MahaRERA registered projects where completion date, revised completion date or extended completion date expires on or after 15th April 2021, the period of validity for registration of such projects shall be extended by 6 (six) months;
  2. In pursuance of the aforesaid, MahaRERA will issue project registration certificates, with revised timelines for such projects;
  3. The above automatic extension shall not apply to projects that were to be completed before 15th April 2021;
  4. The time limits for compliances under Section 11, which become due anytime during force majeure period, shall stand automatically extended for a period till the expiry of force majeure period; and
  5. The above extensions shall not affect the rights of the allottees as may be available to the allottees under the provisions of the RERA Act and the rules and regulations made thereunder.

Circular No. 23 of 2021 dated 8th September 2021-Procedure for grant of adjournments:

MahaRERA has provided certain procedural clarifications pertaining to hearing of complaint before the RERA authority in relation to grant of adjournments when complaints are listed for hearings before the respective Bench of MahaRERA as well as in the matter of submission of documents on which parties rely upon/ place reliance in the complaints as filed and mode of hearing of complaints.

This Circular has laid down that no adjournments shall be granted more than 2 (two) times to a party.

Circular No. 24 of 2021 dated 21st September 2021- Projects where registration has expired:

The RERA website periodically updates the list of completed projects, ongoing projects and expired projects. A number of projects have expired i.e. registration has lapsed and the promoters have neither filed Form 4 i.e. architect’s certificate, on completion of project nor have they applied for extension of the project.

The circular dated 21st September 2021 provides the procedure for such projects considering various scenarios which are as follows:

  1. In the event Form 4 has been filed and the occupation certificate is issued within the date of completion, the same can be validated as correct.
  2. In the event Form 4 has been filed and the occupation certificate is issued after date of completion, the promoter can apply for correction of the completion date of the project, provided there is no inventory sold.
    ln case any inventory has been sold, then the Promoter will have to apply for extension of the completion date of the Project, which will be valid upto date of the occupation certificate as a post facto extension.
  3. In the event Form 4 has been filed but no occupation certificate or part occupation certificate is issued, promoter can apply in correction module and completion date can be corrected, provided there is no sold inventory.
    In case there is sold inventory, then there are 3 (three) further scenarios for which provisions have been laid down viz. (a) in case of extension due to force majeure, the promoter shall make an application under Section 6 of the RERA Act, (b) in case of extension to be granted in place of revocation due to complaint/ suo moto by MahaRERA/ on recommendation of the competent authority, promoter shall apply for extension under Section 7 (3) of the RERA Act, with the consent of minimum 51% allottees of the project. Incase the consent of less than 51% allottees is obtained, then an application can still be made with the available consent. The authority may set up a joint hearing an consider extension with additional conditions. 
  4. In the event the promoter does not apply for extension or does not respond, then Allottee’s society can apply to Authority under Section 7 which deals with revocation of registration of project. After the hearing, the authority will pass an order as it deems fit in the case.

Circular No. 26 of 2021 dated 29th October 2021- CERSAI report submission:

The Central Registry Securitisation Asset Reconstruction and Security Interest of India (“CERSAI“), operates and maintains the central registry for creation, modification and satisfaction of security interest created in inter alia immovable property, tangible and intangible assets, ‘under construction’ residential or commercial or a part thereof by an agreement or instrument other than mortgage, etc.

Vide the circular no. 19 dated 28th July 2021, MahaRERA has laid down certain provisions to be followed by the promoters viz. to submit a report from CERSAI on the security interest created over the project at the time of project registration and also with each quarterly update. Such CERSAI report should not be older than 10 days prior to date of submission.

By the circular dated 29th October 2021, the provisions under the aforesaid circular no. 19 dated 28th July 2021 have been amended to the extent of submission of a report from CERSAI on the security interest created over the project at the time of project registration and as and when there are changes in the same, Promoter shall submit updated CERSAI Reports on security interests created on the project.

As banks and financial institutions are mandated to report security created in their favour to CERSAI, this requirement will further safeguard the interests of the home buyers/ allottees of a real estate project, as all charges reported by any lender on CERSAI will also be disclosed on the MahaRERA portal of the project.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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