MahaRERA Mandates Society Formation Even for Few Units Sold

A recent directive from the Maharashtra Real Estate Regulatory Authority (MahaRERA) has reiterated the obligation of real estate promoters to facilitate the formation of a cooperative housing society or other legal entity of allottees, irrespective of the number of units already sold in a project. This decision is poised to offer clarity and stronger protection for homebuyers in Maharashtra.

Developer's Obligation under RERA

The MahaRERA order addresses a common grievance where developers delay or refuse to form a cooperative society, citing insufficient unit sales. The Authority has clarified that such delays are contrary to the spirit and letter of the Real Estate (Regulation and Development) Act 2016. Specifically, the RERA Act 2016 mandates developers to take necessary steps for the formation of a society or other legal entity of allottees within a stipulated timeframe after receiving the occupancy certificate or handing over possession of the majority of the units.

Implications for Homebuyers

This ruling has several positive implications for allottees:

• Enhanced Rights: It reinforces the allottees' right to form their association, which is crucial for managing common areas, facilities, and the overall maintenance of the project.
• Prevents Exploitation: It curtails developers' ability to indefinitely control a project's management by delaying society registration.
• Streamlined Process: It aims to streamline the process of transferring common areas and responsibilities to the residents' association.

Filing a RERA Complaint

Homebuyers encountering issues with society formation or other RERA violations can file a complaint with their respective State RERA Authority. The process generally involves:

1. Visiting the official website of the State RERA Authority (e.g., MahaRERA for Maharashtra).
2. Logging into the portal and completing the complaint form, providing details of the project, promoter, and the nature of the grievance.
3. Attaching necessary supporting documents, such as the Sale Agreement, payment receipts, and correspondence with the developer.
4. Paying the prescribed complaint fee.
5. Submitting the complaint and obtaining an acknowledgment number.

Common grounds for filing a RERA complaint include delayed possession, misleading advertisements, deviation from approved plans, poor construction quality, and issues with refunds or compensation. The MahaRERA order serves as a reminder to developers of their statutory obligations and empowers homebuyers to seek recourse under the RERA Act 2016.