Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to redefine the minimum criteria for formation of a Self Regulatory Organisation (SRO), for developers outside the MMR area, from 500 projects to 200. This move will make assistance and guidance on regulatory related issues much more accessible to the real estate sector for regulatory purposes.
About The Decision
The decision has been taken keeping in mind the changing requirements of the evolving housing sector, which is transforming rapidly outside MMR also. The move will immensely help developers in the rest of Maharashtra to get official assistance and guidance on several regulatory related issues pertaining to MahaRERA such as registration of new housing projects, correction, renewal, quarterly progress reports, project completion reports, etc.
MahaRERA had taken the initiative, in October 2019, in India to officially recognise a group or an organisation or a federation of builders as SRO. The recognition is subject to compliance to certain conditions and role is related to MahaRERA's regulatory framework.
Since MahaRERA’s establishment, it is mandatory for all the developers to register their projects. However, it has been observed that the developers often fail to furnish necessary information and documents leading to delays in project’s registration, corrections, renewal and so on. The SROs, who are in the know of regulatory framework, play a crucial role in assisting the industry in ensuring compliance by providing right guidance.
What Are SROs?
The SROs are the only ones officially recognised as the representatives of the developers. Agents and other intermediaries have already been banned by the MahaRERA.
At the moment, there are a total of 7 SROs recognised by MahaRERA. They are:
1) NAREDCO West Foundation
2) CREDAI-MCHI
3) CREDAI Maharashtra
4) Builders Association of India
5) Marathi Bandhkam Vyavsayik Association
6) Brihanmumbai Developer Association
7) CREDAI-Pune Metro
What Is The Primary Objective Of Having An SRO?
The primary objective of having an SRO is to assist the developers. Presently, while registering a housing project, the applicant developer must be a member of one of these 7 organisations.
MahaRERA scrutinises every application it receives from the builders and provides lacunas and observations to the SRO representative, which the developer is a member of. The SRO representatives are a link between MahaRERA and the developers, as they follow up on every application made by their members. With the new criteria set for the SROs in areas other than the MMR, it opens space for more organisations to get recognition. This will have a multiplier effect with more developers ensuring compliance for their projects.
