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Important Directive: Disclosure of Interest in Other Real Estate Organizations (Order No. 39/2022)

Order No. 39/2022 issued by the Maharashtra Real Estate Regulatory Authority (MahaRERA) mandates the disclosure of interests in other real estate organizations by promoters at the time of registering a real estate project. This directive aims to ensure transparency and enable homebuyers/allottees to make informed decisions.

Key Points:

Legislative Background:

• The Real Estate (Regulation and Development) Act, 2016 (the Act) mandates transparency and accountability in the real estate sector.
• The Government of Maharashtra established MahaRERA to regulate the sector effectively.

Purpose of the Directive:

• The directive aims to provide homebuyers/allottees with information about promoters who are associated with other real estate organizations.
• Promoters are required to disclose their interests in other organizations whose real estate projects are registered with any Real Estate Regulatory Authority (RERA) across the country.

Details to be Provided:

• Promoters must upload a Self-Declaration disclosing their interests in other real estate organizations.
• The declaration should include details such as the name, DIN/DPIN (if applicable), and status of the registered projects of the other organizations.

Format of Self-Declaration (Annexure A):

• The Self-Declaration must be on the letterhead of the promoter organization.
• It should include the name, DIN/DPIN, and information about any projects registered with RERA.
• Details such as RERA registration number, proposed date of completion, pending complaints, and project revocation status must be provided for each project.

Implementation Date:

• The directive comes into effect from 1st January 2023.

Compliance Requirement:

• Promoters must ensure compliance with the directive while applying for the registration of a real estate project.

Consequences of Non-compliance:

• Failure to disclose interests in other real estate organizations as per the directive may lead to penalties or regulatory action by MahaRERA.

Conclusion: Order No. 39/2022 emphasizes transparency and accountability in the real estate sector by requiring promoters to disclose their interests in other real estate organizations. This directive enhances consumer protection and enables homebuyers/allottees to make informed choices when investing in real estate projects.