Homebuyers would soon be able to know the real estate business credentials of promoters whose projects they plan to invest in – such as whether other projects of the promoter have been shelved in the past. They will also have to upload a self-declaration document on the site.
An order issued by MahaRera on December 27, states that to ensure homebuyers make an informed decision it is necessary to provide them details of the promoters, who may be proprietors, partners or directors in other firms, which may have real estate projects registered with any Real Estate Regulatory Authority (Rera) across the country.
The MahaRera disclosure form makes it mandatory for the promoter to provide Rera registration details of the projects in which the promoter has interest, including proposed date of completion and any complaints pending against the project with Rera. The form also makes it mandatory for the promoter to disclose any warrant issued against the project by Rera, and whether the project has been revoked by Rera.
The provisions of Real Estate (Regulation and Development) Act requires the authority to make details of all defaulting promoters, including the details of the project where the registration has been revoked or promoters penalised under the Act, available to the general public on its website.
“Builders are usually involved in several real estate projects across Mumbai or even across India. While certain projects are stuck in limbo, builders promote several new projects, while ignoring or making feeble attempts at completing the projects stuck for years. This intent of the regulator is to bring in greater transparency. The move is very important to understand the genuineness and authenticity of promoters, and strikes at the heart of integrity and clean ethics in business while attracting flat purchasers to their projects,” said advocate Anil Dsouza, secretary of MahaRera Bar Association.
Advocate Vinod Sampat said, “Many promoters misguide flat buyers. In some cases, the promoter’s interest in other projects is not disclosed and at times, other projects are facing severe problems, like bank liabilities, delay in competition and litigation.”