With Maharashtra finalising the rules under the real estate act, its Housing Regulatory Authority will start operating from May 1, 2017, said a government official. The Authority has been set up under the Real Estate (Regulation and Development) Act, 2016, whose chief purpose is to safeguard the interests of flat-buyers.
As per the rules, any penalty or compensation imposed on a promoter/builder or a real estate agent (for duping a flat buyer, etc.), shall be recovered in the manner prescribed by the Maharashtra Land Revenue Code. The minimum penalty for errant builders, will be five per cent of the estimated cost of the project and can extend up 10 per cent of such cost. The Authority will be a quasi-judicial body and its order will be enforced as if it is an order of a civil court. If the Authority can’t enforce an order, it will be referred to the principal civil court, which will execute it.
The Authority will have the powers to summon witnesses for the purpose of conducting inquiry into complaints.
Under the Act, builders will have to register every housing project with the Authority, which will publish a list of approved projects on its website for the benefit of buyers.