Watch the full video (above) of the talk on ‘Establishing Regulatory Capacity for the Real Estate Sector: The MahaRERA Experience’ featuring Gautam Chatterjee (Chairperson, Maharashtra Real Estate Regulatory Authority) and Deepak Sanan (Senior Visiting Fellow,CPR), organised by the State Capacity Initiative at CPR.
The Real Estate (Regulation and Development) Act, 2016 was enacted by Parliament with the objective of bringing about transparency and financial discipline in the real estate business, and to protect the interests of home buyers. The law mandates states to set up real estate regulatory authorities; developers/builders are required to register projects with this regulatory authority before commencing bookings and sales. Builders are also required to deposit 70% of amounts collected from buyers into an escrow account, to ensure that these funds are used only for the specific project. The objectives of the Act include speedy dispute resolution, curbing the flow of black money, and ensuring timely completion of projects. Progress on the implementation of this law by states is encouraging. So far 29 states have set up regulatory authorities, and 24 have established appellate tribunals. Regulatory authorities of 24 states have set up their websites – which is critical for the implementation of the Act as it mandates online registration. A total of 46,695 real estate projects and 36,823 real estate agents have been registered under the Act across the country.
Maharashtra was the first state to set up its Real Estate Regulatory Authority (MahaRERA). The state has one of the largest real estate markets in India. It reports more than half of all projects registered in the country and most real estate agents.
Gautam Chatterjee is the first and current Chairperson of the Maharashtra Real Estate Regulatory Authority. The talk focused on his experience of establishing regulatory capacity and creating the conditions for transparency and market discipline in a difficult market.
The question and answer session that followed can be accessed here.