Mumbai: MahaRERA ushers in era of transparency

Housing regulator MahaRERA has now decided to make public the information on forms 1, 2, 3,5 and 2A submitted by developers related to the progress of the ongoing projects and the withdrawal of money from designated accounts. What this means for homebuyers is that they can cross-check the information that was not available to them as recently as December 2021.

Form 1 comprises the percentage of work completed and assessed by the architect; Form 2 is the engineer’s certificate for costs incurred till the date of withdrawal, the percentage of work completed and the cost required thereupon; Form 3 is the chartered accountant’s certificate reflecting the project cost, deposits and the withdrawals done. Form 5 is

additional information for flatbuyers, from which they can relate the progress in construction work through the amount utilised from the designated account. This form has to be submitted in every financial and the same will be placed in the public domain by MahaRERA. Form 2A is the quality assurance certificate that the input material, fixture and fittings are as per specification mentioned in annexure “E” of the agreement of sale. Whatever the promoters had agreed to provide in the agreement is what they should provide in the said project and give the certificate. This is the new correction which relates the quality assurance certificate to the agreement of sale.

Suppose a developer demands money from a homebuyer claiming that he has completed work as far as the 10th slab and files misleading affidavits to this effect. However, during site inspection, the homebuyer finds out that the developer has not accomplished that amount of work, they can lodge a complaint with the MahaRERA, said Vasant Prabhu, MahaRERA secretary. “The regulator can take suitable action against the builder for fraudulent practices. Moreover, the associations of the architect and engineer who have given fake affidavits of certification of completion of work will be informed, which may follow up by cancelling licences.”

As per the rules, whatever money is withdrawn should be utilised for the same project only, Prabhu added. “For any project, finance is the main factor. If that amount is diverted, there will be shortage of funds and the project may get delayed. This should be avoided.”

Hitesh Thakkar, Vice President, NAREDCO West and Partner of Prem Group, a leading Mumbai-based real estate company, has said the new move would prevent fraudulent practices in the sector. “It will put more confidence into buyers and with this, MahaRera is trying also to create transparency between the promoter and the buyer, which will create a positive notion in the real estate market."