Builder say the confusion stems from the fact that in the state new projects cannot be advertised but ongoing projects can
Builders in Maharashtra say their business is being affected by the lack of clarity on whether projects that are not yet registered with the state Real Estate Regulatory Authority (RERA) can be advertised.
When builders’ body NAREDCO (National Real Estate Development Council) wrote to the Ministry of Housing and Urban Poverty Alleviation seeking clarity on whether unregistered projects could be advertised, the ministry categorically replied that advertisements for every unregistered ongoing and future project was prohibited. Builder say the confusion stems from the fact that in the state new projects cannot be advertised but ongoing projects can.
“We wrote to the ministry in May, and we received a response now in mid-June. We were expecting that till July 31 -- the last day for registration -- we will be allowed to advertise unregistered projects. However, with this decision, business will be adversely impacted,” said a builder on condition of anonymity.
The response from the Ministry of Housing and Urban Poverty Alleviation reads, “In order to safeguard the interests of home buyers, the act (RERA) prohibits every ongoing/future projects that aren’t registered from advertising.”
When contacted, Gautam Chaterjee, Chairman Maharashtra RERA clarified, “For new projects; they are banned from advertising unless they are registered, but projects with Occupation Certificate are exempted from registering.”
...& ANALYSIS
- Before the states had notified their rules under RERA, the Centre had warned states not to dilute the spirit of the Act by introducing rules that went against its provisions. Builders are wary of taking any steps before all doubts are cleared as MahaRERA recently fined a registered real estate agent for advertising an unregistered project.
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