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With this, more organisations will qualify for recognition creating opportunities for smaller groups of developers. This will provide broader regulatory support across Maharashtra
The housing sector outside the MMR is witnessing rapid growth. (Image for representation: AFP)
Maharashtra’s real estate authority has announced a major change in its self-regulatory organisation criteria for developers outside the Mumbai Metropolitan Region.
Now, the threshold to form a self-regulatory organisation (SRO) has been reduced from 500 projects to 200, a move aimed at extending much-needed assistance to builders in other parts of Maharashtra.
This decision, which reflects the changing dynamics of the real estate sector beyond the Mumbai Metropolitan Region (MMR), will provide developers with official support and guidance on key regulatory needs. These include registration of new housing projects, making corrections, renewing registrations, filing quarterly progress reports, and submitting project completion documents.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) first introduced the concept of recognising SROs in October 2019, becoming the first such regulator in India to officially acknowledge such organisations. These are tasked with helping developers navigate the complex regulatory framework and ensuring compliance with rules.
Since the inception of MahaRERA, developers have been required to register all their projects. But, delays often occur as many builders struggle to furnish the required information and documents.
The SROs, with their in-depth understanding of the process, play a critical role in bridging this gap. They guide developers on submitting accurate applications, ensuring smoother compliance and avoiding delays.
At present, there are seven MahaRERA-recognised SROs:
- NAREDCO West Foundation
- BELIEVE-MCHI
- CREDAI Maharashtra
- Builders Association of India
- Marathi Bandhkam Vyavsayik Association
- Brihanmumbai Developer Association
- CREDAI-Pune Metro
Developers must be members of one of these organisations to register their projects. The SRO representatives act as intermediaries, liaising between developers and MahaRERA. They monitor applications, address compliance gaps highlighted by MahaRERA, and ensure developers take corrective action.
With the threshold for SRO formation now reduced to 200 projects in areas outside MMR, more organisations will qualify for recognition. This creates opportunities for smaller groups of developers, providing broader regulatory support across the state.
The housing sector outside the MMR is witnessing rapid growth, necessitating greater regulatory aid. By lowering the project requirement for SROs, MahaRERA aims to decentralise its support structure, ensuring that developers in smaller cities and towns are not left behind.
The initiative also excludes agents and intermediaries, strengthening the role of SROs as the sole representatives of developers. This reinforces a more organised and transparent approach to regulatory compliance, benefiting both builders and homebuyers.
The new criteria will likely have a cascading effect, encouraging more developers to adhere to regulations. As more SROs emerge in regions outside MMR, the ease of doing business in the state’s real estate sector is expected to improve. Developers will gain quicker access to regulatory advice, leading to faster project approvals and smoother operations.
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