MahaRERA Directs Verification of Commencement Certificate Prior to Project Registration

In a pivotal development for the real estate sector in Maharashtra, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has mandated that promoters must secure and upload a valid Commencement Certificate (CC) before applying for project registration under the Real Estate (Regulation and Development) Act 2016. This directive aims to streamline the registration process and safeguard the interests of homebuyers.

Rationale Behind the Directive

The Authority's decision stems from a recognised need to prevent the registration of projects that lack fundamental regulatory approvals. Previously, some projects would commence sales or even apply for RERA registration without the requisite CC, leading to delays, disputes, and significant financial risk for purchasers. By making the CC a prerequisite for registration, MahaRERA intends to:

• Enhance Transparency: Ensure that only legally sanctioned projects are listed on the RERA portal.
• Protect Homebuyers: Mitigate the risk of homebuyers investing in projects that may face legal hurdles or construction delays due to lack of primary approvals.
• Promote Accountability: Hold promoters accountable for obtaining necessary statutory clearances before advertising or selling units.

Implications for Promoters

Promoters are now required to furnish a valid CC issued by the competent planning authority as part of their RERA registration application. Failure to do so will result in the rejection of the application. This necessitates a more disciplined approach to project planning and execution, compelling developers to obtain all preliminary approvals in a timely manner.

Impact on Homebuyers

For prospective homebuyers, this directive offers an added layer of security. Before purchasing a property, buyers can now verify that the project is not only RERA-registered but also holds a valid Commencement Certificate, indicating that construction can legally proceed. This reduces the likelihood of encountering projects that are stalled or face demolition orders due to a lack of regulatory permissions.

This measure by MahaRERA is a significant step towards reinforcing the objectives of the RERA Act 2016, specifically sections relating to project registration and the promoter's obligations to disclose all material information and approvals. It underscores the Authority's commitment to fostering a more regulated and transparent real estate market in Maharashtra.