Regulatory Storm Brews: Developers Grapple with Compliance Challenges Under MahaRERA
Mumbai (Maharashtra), [India], May 7, 2024: In a recent development, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has intensified its crackdown on non-compliant real estate agents and developers, signalling stringent actions on regulatory adherence within the real estate sector. The regulatory body’s latest directive, issued on April 29, comes as a response to persistent lapses in compliance, particularly concerning the engagement of trained and certified real estate agents.
MahaRERA’s notification serves as a stark reminder to developers regarding the significance of aligning with regulatory mandates. Failure to engage trained and certified agents, as outlined by the directive, carries severe consequences. This includes rejection of project registration applications, revocation of existing registrations, or imposition of fines on promoters.
Such stern approaches highlight MahaRERA’s commitment to upholding industry standards and safeguarding the interests of homebuyers.
With homebuyers relying heavily on agents for crucial information regarding projects, including compliance with RERA regulations, the need for agent competency cannot be ignored. Agents must possess comprehensive knowledge of regulatory requirements, project credibility, land rights validity, RERA-compliant metrics, legal standings, and developers’ financial capabilities to effectively serve the interests of homebuyers.
Despite MahaRERA’s efforts to streamline agent certification processes, challenges persist in achieving widespread compliance. While approximately 44,000 agents were registered across the state, a significant portion—around 13,000 agents—failed to renew their registrations.
MahaRERA’s mandate necessitates agents to undergo training and certification exams, yet about 10,000 agents have obtained certification thus far, leaving a considerable number to undergo mandatory training.
The gravity of the situation is dissected by industry insiders, who emphasise the need for collective action and adherence to regulatory norms. Girish Chhalwani, CEO of THE EDGE, a leading Real Estate Advisory firm, advocates for heightened awareness and collaboration within the industry to address systemic challenges. Girish’s call for industry-wide initiatives, including awareness sessions and educational programmes, reflects a proactive approach towards fostering a culture of compliance and accountability.
Furthermore, the real-estate advisor would like to request MahaRERA to consider granting a three-month extension to all real estate agents for obtaining the certificate of competency.
As the regulatory landscape continues to evolve, developers and industry stakeholders are urged to prioritize regulatory compliance and ethical business practices. MahaRERA’s stance on enforcement indicates the importance of aligning with regulatory mandates to uphold industry integrity and restore trust among stakeholders.
