Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, Registration of real estate agents, rates of interests and disclosures on website) (Amendment) Rules, 2019

Jun 25, 2019 | by Avantis RegTech Legal Research Team


The State Government of Maharashtra on June 06, 2019, has published the Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, Registration of real estate agents, rates of interests and disclosures on website) (Amendment) Rules, 2019 to further amend the Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, Registration of real estate agents, rates of interests and disclosures on website) Rules, 2017. It will come into force on the date of their publication in the Official Gazette.

The amendments made in the Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, Registration of real estate agents, rates of interests and disclosures on website) Rules, 2017 are:

 Rule 2(p-i) has been inserted which specifies about “plotted development” which means the projects where land is developed into plots for the purpose of selling all or some of the said plots.

 In Rule 3(5)(i) talks about “Information to be furnished by the promoter for the registration of real estate project”: At the time of application for registration, the promoter shall pay a registration fee, calculated on the area of the land proposed to be developed at the rate of, rupees ten per square meter, subject to a minimum of rupees ten thousand only and a maximum of rupees ten lakhs.

 In Rule 5(ii) the Explanations I and II has been substituted with, namely:-

“Explanation I.−In ascertaining the cost of completion of percentage of the project, the land cost shall be reckoned on basis of the value of the land as ascertained from the Annual Statement of Rates (ASR) prepared under the provisions of the Maharashtra Stamp Act, relevant on the date of registration of the real estate project.”

Also, following Explanations has been added:-

“Explanation IV.−all cost items should be mutually exclusive. There should not be any double counting of costs. Explanation V.−The development cost or cost of construction of the project shall not include marketing and brokerage expenses towards sale of apartments. Such expenses though part of the project cost, should not be borne form the amount that is required to be deposited in the designated separate account.”;

 Rule 5(iii) has been inserted, namely:

“Application of provisions of sub-clause (b) of clause (i) to ongoing projects.– The provisions of sub-clause (b) of clause (i) regarding submission of certificates to schedule bank for withdrawal of amount shall mutatis mutandis apply in case of ongoing projects.”

 Rule 7(3) talks about “Extension of registration of the Real estate project.”: The application for extension of Real Estate Project shall be accompanied with fees calculated on the area of land proposed to be developed at the rate of rupees ten per square meter, subject to a minimum of rupees ten thousand only and a maximum of rupees ten lakhs only and in case of plotted development, the promoter shall pay an extension fee, calculated on the area of the land proposed to be developed at the rate of rupees five per square meter.

Rule 9(2), clause (ii) and (iii) have been substituted.

 Amendments are also made in Annexure A.

[Notification No. REA. 2018/C.R.106/RR-2]

Click here to download the Notification.

 


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