In an effort to increase developer compliance, Maharashtra RERA has updated its requirements for self-regulating organizations. Real Estate

MUMBAI: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has updated the eligibility criteria for forming Self-Regulatory Organizations (SROs), a move aimed at bolstering compliance among real estate developers.

The revision reduces the minimum project threshold for SRO formation from 500 to 200 projects in areas outside the Mumbai Metropolitan Region (MMR). This change seeks to broaden access to regulatory guidance and foster stricter adherence to the rules within the real estate industry.

Since its inception, MahaRERA has mandated developers to register their projects. However, despite this requirement, many developers fail to submit the necessary documents and information, leading to delays in critical processes such as project registration, corrections, renewals, and other related activities.

SROs, with their in-depth understanding of the regulatory framework, play a vital role in guiding industry stakeholders and ensuring compliance with prescribed norms.

MahaRERA took a significant step in October 2019 by officially recognizing organizations, groups, or federations of builders as SROs, provided they adhere to specific conditions within MahaRERA’s regulatory framework.

Importantly, SROs are the sole entities recognized to represent developers, as MahaRERA has prohibited agents and intermediaries from assuming this role.

Currently, seven SROs hold MahaRERA recognition: NAREDCO West Foundation, CREDAI-MCHI, CREDAI Maharashtra, Builders Association of India, Marathi Bandhkam Vyavsayik Association, Brihanmumbai Developer Association, and CREDAI-Pune Metro.

The primary function of these SROs is to assist developers. For a developer to register a housing project, they must be a member of one of these recognized organizations.

MahaRERA meticulously reviews each application submitted by developers and communicates any discrepancies or observations to the respective SRO representative. These representatives act as crucial intermediaries between MahaRERA and developers, ensuring timely follow-ups on applications filed by their members.

The revised criteria for SRO formation outside the MMR region pave the way for more organizations to achieve recognition.

This expansion is anticipated to encourage a greater number of developers to adhere to regulatory requirements for their projects, ultimately elevating compliance standards across the industry.

By easing the eligibility requirements and increasing the number of recognized SROs, MahaRERA aims to strengthen the regulatory ecosystem and foster a culture of accountability and transparency in Maharashtra’s real estate sector.