The Maharashtra Real Estate Regulatory Authority (“Authority”) on June 9, 2023 issued order no. 25A/2023 (No. MahaRERA/Secy/File no.27/920/2023) (“Notification”) under the Real Estate (Regulation and Development) Act, 2016 (“Act”) read with the Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures of Website) Rules, 2017 (“Rules”). Vide the Notification, the Authority has yet again attempted to make its stand clear on the real estate projects which are exempted from registration under the RERA.
Background:
Section 3(2)(a) of the Act states that registration of a real estate project is not required, if: (i) the area of land on which the project is to be developed does not exceed 500 (five hundred) square meters, or (ii) not more than 8 (eight) apartments are to be developed in such project, including all the phases of such project. There has however been a conflict regarding whether a project is exempted only if it does not meet the criteria provided in either (i) or (ii) above, or if it exempted only if it does not meet the criteria provided in both (i) and (ii) above.
Notification:
In order to further clarify and supplement its circular no. 25/2019 dated October 11, 2019, the Authority, has stated in the Notification that:
“1) Real Estate Projects where the area of land proposed to be developed is less or equal to five hundred square meters shall not require MahaRERA Project Registration irrespective whether the numbers of apartments / units proposed to be developed is less than or more than eight apartments /units as the case may be inclusive of all phases.
2) Real Estate Projects where number of apartments/units proposed to be developed is Iess or equal to eight apartments / units inclusive of all phases shall not require MahaRERA Project Registration irrespective whether the area of the land proposed to be developed is less than or more than five hundred square meters.”
The Notification further clarifies that promoters are still allowed to voluntarily submit applications for registration with the Authority, even if their projects are excluded from the purview of the Act.
Please find a copy of the Notification, here. For a detailed discussion on Section 3(2) of the Act, please refer to our paper, here.
This update has been contributed by Nidhi Arya (Partner) and Ayushi Jain (Associate).
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