Mumbai: From the upcoming financial year, real estate agents earning more than Rs 20 lakh annually will be subject to rules under the Prevention of Money Laundering Act, 2002, and will have to disclose their income twice a year, apart from appointing certain staff. Even as the regulatory update has upset the real estate agent community, it has already found ways to circumvent it.
Real estate agents ordered to disclose their income twice a year
It is mandatory for brokers to register with real estate regulatory authorities across India. Henceforth, agents working in the real estate sector and playing an important role between the developer and the customer, will now be required to publish the overall details of their transactions twice a year - their earnings between April and September as well as those between October and March, on their own website.
Apart from this, for those with an annual turnover of more than Rs 20 lakh in the realty sector, it is now mandatory to appoint a principal officer and a designated director, as per PMLA. While the Maharashtra Real Estate Regulatory Authority claims that the information not be made public, what has upset the channel partner community is having to display the same on their respective websites.
Irked realtors react on new policy
“On the one hand, government authorities state that the information will not be made public, and yet, they are forcing us to put it out in the public domain,” said an agent on condition of confidentiality.
On Tuesday, a circular was issued by the MahaRERA to implement the rules. As per the circular, realtors will have to submit the first report on their website by October 20, in the MahaRERA prescribed format. This will include the project’s name, along with the MahaRERA registration number of the developer for whom the transaction was made and the details of the transaction, such as flat, shop, plot, building, land and income received, along with the date.
MahaRERA warns of strict action over non-compliance of policy
While the MahaRERA has threatened errant professionals with strict action, those within the industry opposed to the move claim that they have already been filing income tax with the government, disclosing their annual income. “Why this duplication? The government already has access to our income details,” questioned another broker.
