Recently, the Maharashtra Real Estate Regulatory Authority (“MahaRERA”) has issued an Order bearing No.62/2024 on October 22, 2024 (“Order”) clarifying the following important issues:
- Projects for which registration is not compulsory;
- What constitutes commencement certificate and completion certificate in case of plotted developments.
WHERE REGISTRATION OF REAL ESTATE PROJECT IS NOT COMPULSORY:
- With respect to Section 3(2)(a) of the Real Estate (Regulation and Development) Act, 2016 (“RERA Act”), the MahaRERA has clarified that:
- a real estate project shall not require registration if the area of land proposed to be developed is less or equal to 500 (five hundred) square meters irrespective of the number of units/apartments proposed to be developed even if the apartments/units to be developed in all phases exceed 8 (eight);
- a real estate project shall not require registration where number of apartments/units proposed to be developed is less than or equal to 8 (eight) apartments/units inclusive of all phases irrespective whether the area of the land proposed to be developed is less than or more than 500 (five) hundred square meters.
COMMENCEMENT CERTIFICATE AND COMPLETION CERTIFICATE FOR PLOTTED REAL ESTATE PROJECT:
- With respect to Section 3(2)(b) of the RERA Act, the MahaRERA has clarified that:
- The commencement Certificate is the final approval accorded to the land sub-division layout in Form D-3 of Unified Development Control and Promotion Regulations for Maharashtra State or the approval of similar nature with non-agricultural permission (wherever necessary).
- The completion Certificate is:
- The certificate issued by the concerned competent authority informing the promoter and/or licensed engineer/structural engineer/supervisor of the plotted real estate project; or a copy of acknowledgement submitted to the concerned competent authority on a self-certification basis by the promoter that the conditions imposed in the final approval accorded to the land sub-division layout in Form D-3 (or in the approval of similar nature) have been complied with; or
- The receipt of the intimation of the Tehsildar given as an acknowledgement of having received the intimation of the date of commencement of the non-agricultural use after completion and execution of all the conditions as may have been imposed by the concerned competent authority along with duly filled Form 4 (Architect Certificate – To be issued on completion of each of the Building/Wing) and signed by the project architect in compliance of Regulation 3 of the Maharashtra Real Estate Regulatory Authority (General) Regulations 2017.
The Order also states that:
- The MahaRERA project registration certificate is not required to be submitted for registration of an agreement for sale/sale deed, as such real estate projects are exempted from registration under Section 3(2) of the RERA Act.
- It supersedes MahaRERA Circular Nos.25/2019 dated October 11, 2019, 25/A/2023 dated June 9, 2023, and MahaRERA Order No.37/2022 dated December 13, 2022.
This update has been authored by Avikshit Moral (Partner) and Mahek Chheda (Associate). They can be reached on avikshit@snrlaw.in and mchheda@snrlaw.in, respectively, for any questions. This is intended only as a general discussion of issues and is not intended for any solicitation of work. It should not be regarded as legal advice and no legal or business decision should be based on its content.© 2024 S&R Associates