Maharashtra RERA Caps SRO Appointee Tenure at Two Years

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a policy limiting the tenure of representatives from Self-Regulatory Organisations (SROs) assisting with housing project registrations to a maximum of two years. This measure aims to prevent potential conflicts of interest and enhance the efficiency of the registration process.

In its directive to the SROs, MahaRERA has mandated that representatives who have completed two years in their roles must be replaced immediately.

The authority has further stipulated that these appointees must possess specialized knowledge in legal, financial, and technical fields, as these areas are critical during the registration of housing projects.

Explaining the rationale behind the decision, MahaRERA Chairman Manoj Saunik stated that registering real estate projects involves rigorous scrutiny of legal, financial, and technical aspects before a registration number is issued.

This process demands that the representatives of SROs be subject matter experts who can effectively support their members during registration. He also emphasized the need to cap their tenure at two years to maintain a fresh and impartial perspective in the registration process.

Currently, seven SROs are recognized by MahaRERA, including NAREDCO West Foundation, CREDAI-MCHI, CREDAI Maharashtra, Builders Association of India, Marathi Bandhkam Vyavsayik Association, Brihanmumbai Developer Association, and CREDAI-Pune. Each of these organizations is tasked with appointing representatives who will act as liaisons between MahaRERA and their member developers.

Under the Real Estate (Regulation and Development) Act, 2016, every housing project is required to register with MahaRERA and obtain a registration number.

Developers are prohibited from advertising, promoting, or selling projects without this mandatory registration. The process of obtaining a registration number involves detailed scrutiny of the project’s legal, financial, and technical compliance, which underscores the importance of having knowledgeable representatives to assist in these evaluations.

Appointees from SROs play a crucial role in assisting MahaRERA by addressing queries and fulfilling requirements during the registration process.

They act as intermediaries, conveying observations and remarks made during the scrutiny process to their respective member developers and helping them address any identified issues.

To ensure effective and unbiased support, MahaRERA has emphasized that SRO representatives must have domain expertise in at least one of the critical areas of legal, financial, or technical matters.

Additionally, since MahaRERA provides only one seat per SRO, representatives are required to serve on a rotational basis to meet the varying needs of their members.

This new policy is expected to streamline the registration process further while ensuring that only qualified experts contribute to the rigorous scrutiny required for granting registration numbers.