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Disclosure Of Information In Public Domain, In Re
Factual and Procedural Background
The Government of India enacted the Real Estate (Regulation and Development) Act, 2016 (the Act), which came into force on 01.05.2021. Subsequently, the Government of Maharashtra established the Maharashtra Real Estate Regulatory Authority (MahaRERA Authority) by Notification No. 23 dated 08.03.2017. Maharashtra also notified the Maharashtra Real Estate (Regulation and Development) Rules, 2017 (the Rules) and the Maharashtra Real Estate Regulatory Authority (General) Regulations, 2017 (the Regulations) to implement the provisions of the Act. The Chairperson of MahaRERA Authority is vested with powers of general superintendence and directions under section 25 of the Act. The Authority was established to ensure efficient, transparent, and accountable transactions between promoters and allottees, aiming to reduce fraud and delays. In this context, the Authority mandated that certain documents uploaded by promoters regarding their real estate projects be made available in the public domain. This Circular came into force on 22.12.2021.
Legal Issues Presented
The opinion addresses a procedural matter and does not frame distinct legal issues.
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The opinion outlines the statutory framework established by the Real Estate (Regulation and Development) Act, 2016, and the corresponding state-level rules and regulations. It highlights the role and powers of MahaRERA Authority and the rationale behind the transparency measures. The court’s analysis is limited to affirming the enforcement of the Circular mandating public disclosure of specific documents by promoters to promote accountability and reduce fraud in real estate transactions.
Holding and Implications
The Circular mandating public disclosure of specified documents by promoters under MahaRERA is upheld and considered effective from 22.12.2021.
The direct effect of this decision is to ensure transparency and accountability in real estate project dealings by requiring public access to certain certificates and reports uploaded by promoters. No new precedent is established beyond enforcing the statutory and regulatory framework already in place.
1. Whereas, Government of India has enacted the Real Estate (Regulation and Development) Act, 2016 (the Act) and all sections of the Act have come into force with effect from 01.05.2021.
2. And whereas, the Government of Maharashtra vide Notification No. 23 dated 08.03.2017 has established the Maharashtra Real Estate Regulatory Authority (MahaRERA Authority)
3. And whereas, the Government of Maharashtra has also notified the Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017. (the Rules) for carrying out the provisions of the Act.
4. And whereas MahaRERA Authority has notified the Maharashtra Real Estate Regulator Authority (General) Regulations, 2017 (the Regulations) to carry out the purposes of the Act.
5. And whereas, the Chairperson MahaRERA Authority, is vested with the powers of general superintendence and directions in the conduct of the affairs of MahaRERA Authority, under section 25 of the Act.
6. And whereas, MahaRERA Authority has been established so as to ensure that transactions between promoters and allottees are governed by the norms of efficiencv, transparency and accountability, to bring about symmetry of information between promoters and allottees and to significantly reduce frauds and delays.
7. In view of the above the following documents uploaded by the promoter in respect of their real estate project shall be made available in public domain, namely:
a) Form 1, being the certificate issued by the project architect at the time of registration of an ongoing project and for withdrawal of money from RERA designated account.
b) Form2, being the certificate issued by the project engineer, at the time of registration of an ongoing project and for withdrawal of money from RERA designated account.
c) Form 2 A, being the certificate issued by the engineer i.e. the site supervisor, which is be submitted at the end of every financial year till the completion of the project.
d) Form 4, being the certificate issued by the architect on completion of the project.
e) Form 5, being the certificate containing the annual report on statement of accounts issued on the letter head of the chartered accountant who is the annual auditor of the promoters' company/firm.
f) Disclosure of sold/booked inventor (building wise) in the project.
g) Report from CERSAI on security interest created in the real estate project that is available on CERSAI website at www.cersai.org.in
h) Declaration about commencement certificate.
8. This Circular shall be considered to have come into force with effect from 22.12.2021.
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