MUMBAI: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has revised the minimum eligibility criteria for forming a Self-Regulatory Organization (SRO) that are expected to help ensure regulatory compliance among property developers.
The threshold has been reduced from 500 projects to 200 projects for areas outside the Mumbai Metropolitan Region (MMR). The move aims to enhance access to regulatory guidance and support while promoting stricter compliance within the real estate sector.
Since its establishment, MahaRERA has made it mandatory for developers to register their projects. Despite this requirement, several developers often fail to submit the necessary information and documentation, resulting in delays in processes such as project registration, corrections, renewals, and other related activities.
The SROs, with their knowledge of the regulatory framework, play a crucial role in assisting the industry players by providing guidance and ensuring compliance with the mandated regulations.
MahaRERA had taken the initiative, in October 2019, in India to officially recognize a group or an organisation or a federation of builders as SRO. The recognition is subject to compliance to certain conditions and role is related to MahaRERA’s regulatory framework.
Notably, SROs are the only entities officially recognized as representatives of developers, as MahaRERA has already prohibited agents and other intermediaries from functioning in this capacity.
Currently, there are a total of seven SROs recognised by MahaRERA including NAREDCO West Foundation, CREDAI-MCHI, CREDAI Maharashtra, Builders Association of India, Marathi Bandhkam Vyavsayik Association, Brihanmumbai Developer Association, and CREDAI-Pune Metro.
The primary objective of these SROs is to assist the developers. At present, the applicant developer is required to be a member of one of these seven organisations while registering a housing project.
MahaRERA thoroughly reviews every application submitted by builders and communicates any gaps or observations to the SRO representative associated with the developer. These SRO representatives serve as a crucial link between MahaRERA and the developers, ensuring follow-ups on each application filed by their members.
With the revised criteria for establishing SROs in regions outside the MMR, the opportunity expands for more organizations to gain recognition.
This change is expected to have a cascading effect, encouraging a greater number of developers to comply with regulatory requirements for their projects, thereby enhancing overall industry compliance standards.
Source Homevior.in
