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Deadline July 31, but only 350 of 9,000 Maharashtra builders sign up with ReRa

MUMBAI: Around 9,000 builders in the state are expected to register their projects under the Maharashtra Real Estate Regulatory Authority (MRERA), but only 350 of them have done so since May 1, when the regulations came into effect, reveal MRERA authorities. The deadline for registration is July 31.

If builders don't register their projects, they face fine under the RERA and even a jail term in case of repeat offence.

Industry experts say the poor registration rate might be an effect of the slow pace of construction projects and absence of new launches. Around 80,000 residential units remain unsold in the Mumbai Metropolitan Region, which is second after the National Capital Region which has 1.6 lakh unsold units.

Explaining the current situation, Ramesh Nair chairman of CII Realty and Infrastructure Conclave and CEO & Country Head, JLL India, said, "The number of new launches has come down and the focus has shifted to completion of existing projects. The profitability has found its level at 15% down from 40-50% earlier."

If not many builders register projects, people will be left with have limited options in buying legally safe and secured assets, said consumer activists.

RERA authorities have powers to name and shame stakeholders such as government officials if they delay permit to projects affecting the construction schedule.

Ramesh Prabhu of the Maharashtra Societies Welfare Association said, "There was a fear among developers that once the data about project is given, it cannot be changed. Similarly landowners who are co-promoters are not signing up for ReRa to avoid any accountability. Once all the misconceptions are allayed, developers will come forward. Almost all developers are ready with papers to register at the last hour."

Gautam Chatterjee, chairman of MRERA, said they plan to provide a window for making corrections for certain obvious errors in the builders' data. He, however, ruled out any extension of the deadline for registration beyond July 31.


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