A Comprehensive Guide to Madhya Pradesh RERA
Madhya Pradesh Real Estate Regulatory Authority (RERA) is a pivotal governing body that ensures transparency, accountability, and fairness in the state’s real estate sector. Its inception aims to safeguard the interests of homebuyers and promote a structured and regulated environment for real estate transactions. Understanding Madhya Pradesh RERA’s functions, processes, and impact is crucial for developers and buyers navigating the real estate landscape in the state.
Madhya Pradesh took action on October 22, 2016, by announcing the Real Estate (Regulation and Development) Act (RERA) rules. They introduced the official Madhya Pradesh RERA (MP RERA) portal to handle grievances from homebuyers regarding unscrupulous developers and real estate agents. Since its enactment on May 1, 2017, the authority has successfully addressed close to 5,500 complaints.
What Effect does RERA have on MP Real Estate?
The 2016 RERA Act mandates Real Estate Agents to register with the state’s RERA before engaging in any project or transaction. During project registration, promoters must disclose the agents linked to the project. Agents not assigned to a project are barred from conducting real estate activities. This requirement for agent registration under RERA has notably aimed to benefit them and enhance transparency in ongoing and future projects.
Non-compliance or avoidance of registration incurs a penalty of INR 10,000 initially. Continued default results in a penalty of 5% of the project cost, contingent upon the associated sale or purchase.
Escrow Account Under RERA of MP
The Madhya Pradesh government has opted to uphold an escrow account as per the revised Real Estate (Regulation and Development) Act (RERA) regulations. Under these changes, builders can delay setting up a separate account until they recoup their investments in ongoing projects. RERA dictates that developers must deposit 70 percent of the funds collected (excluding expenses on land purchase and construction) into a dedicated account. This provision aims to curb fund diversion and was introduced to ensure greater financial transparency.
What Obligations are covered under the RERA of Madhya Pradesh?
The Madhya Pradesh government has embraced the RERA guidelines set by the central government. Any development comprising eight units or a plot exceeding 500 square meters must undergo registration with the regulatory body.
As per Madhya Pradesh RERA regulations, promoters are obliged to divulge specific details for each eligible project:
- Original sanctioned layout plans and specifications committed to allottees.
- Comprehensive disclosure of the funds amassed from allottees and utilized for project completion.
- Present status of the project substantiated by visual documentation. In case of delays, an updated schedule outlining the causes must be furnished.
- Flat dimensions are determined by the carpet area.
- Escrow account banking particulars, holding 70% of the total funds amassed from purchasers, are to be provided.
Registration process under RERA of Madhya Pradesh
The Madhya Pradesh Real Estate Regulatory Authority (RERA) requires all real estate developers and projects within the state to register on the official RERA website. An online registration method has been implemented to streamline this process. Any qualifying real estate project that was not completed by April 30, 2017, or hasn’t received a completion certificate will fall under the jurisdiction of RERA.
Essential Documents Required for Property Registration
Apart from these papers, a charge will apply upon registering real estate projects under RERA. The fee will be calculated based on the following criteria:
- For new projects: Rs 10 multiplied by the permissible Floor Area Ratio (FAR) per sq m for residential developments, encompassing plots for shared recreational spaces.
- Rs 10 per sq m of carpet area for constructed residential projects, including residential properties and common facilities.
- For commercial units: Rs 20 multiplied by the permissible Floor Area Ratio per sq m.
Application Denial or Withdrawal
Validity of Registration
Role and Responsibilities of Madhya Pradesh RERA
- Regulating Real Estate Transactions: Madhya Pradesh RERA oversees all real estate activities within the state, ensuring strict compliance with established rules and regulations. Its primary goal is to promote ethical practices while preventing any malpractices that could potentially harm stakeholders.
- Protecting Buyer’s Interests: One of its key roles is safeguarding the interests of homebuyers. This involves ensuring timely project delivery, maintaining quality construction standards, and enforcing transparency in all financial transactions. These measures are implemented to enhance consumer confidence and trust in the real estate market.
- Dispute Resolution: Madhya Pradesh RERA serves as a facilitator for resolving conflicts between buyers and developers. It provides a fair and efficient mechanism to address disputes, aiming to achieve amicable resolutions and reduce prolonged legal battles, benefiting both parties involved.
- Imposing Penalties: Non-compliance with RERA regulations can lead to penalties. This authority allows RERA to enforce adherence to prescribed norms and timelines. The imposition of penalties acts as a deterrent, encouraging compliance with regulations and promoting accountability within the real estate sector.
How to file a complaint on the MP RERA website?
Filing a complaint on the MP RERA (Madhya Pradesh Real Estate Regulatory Authority) website is a straightforward process designed to address grievances effectively. Here are the steps to file a complaint:
- Access the MP RERA Website: Navigate to the MP RERA official website.
- Locate the ‘Complaints’ Section: On the homepage, find and click on the ‘Complaints’ tab.
- Select Complaint Recipient: Choose whether the complaint is directed towards the authority or a real estate agent.
- Choose Complaint Category: Select the specific category that aligns with your complaint.
- Provide Details: Enter all the necessary information related to your complaint and personal details as the complainant. Accuracy is crucial here.
- Payment of Filing Fee: Pay the designated fee for filing the complaint. Once the payment is made, a unique complaint number will be generated for reference.
MP RERA’s primary goal is to create transparency and safeguard the interests of homebuyers. Investing in RERA-registered properties is strongly recommended to mitigate potential discrepancies and ensure a more secure real estate transaction. The platform’s policies aim to foster a more buyer-friendly environment, enhancing trust and reliability in real estate dealings.
Royal Greens is a RERA registered property that houses over 300 families. It is a coveted nest in the heart of the city at Niranjanpur, Vijay Nagar. Waking up in Royal Greens is an assurance of living in opulence.
Conclusion
Madhya Pradesh RERA stands as a cornerstone in revolutionizing the state’s real estate landscape. Its commitment to transparency, accountability, and buyer protection has reshaped the industry dynamics, fostering trust and reliability among stakeholders. Understanding its nuances is crucial for anyone engaged in real estate transactions within Madhya Pradesh, ensuring a secure and informed investment journey.