MahaRERA asks realtors to declare mortgage of housing projects
Real Estate

MahaRERA asks realtors to declare mortgage of housing projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered all realty developers to reveal the security interests formed by them on the projects listed with the authority.

The decision is targeted at enhancing transparency and informing prospective homebuyers regarding any mortgage or loans taken by the developer against the houses they are about to purchase - or the project itself.

This data is already available with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (Cersai), a central government firm for the purpose of working and managing a registry of such data.

The purpose of Cersai organised under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act) is to limit loan frauds, like involving lending from various banks on the same property.

Cersai has information in respect of the security interests generated from January 22, 2016, for listed commercial banks and, with effect July 1, 2016, for all other entities listed with it. From June 2017, it began data registration on a security interest in under-construction residential and commercial property.

Additionally, MahaRERA has made it clear that homebuyers and allottees need to know such security interests formed on real estate projects and homes they are interested in buying.

Several times, homebuyers acquire property without the knowledge of the mortgage or loan status of the property, and this leads to litigations and legal complexities. If the builder has availed of a loan by mortgaging inventory or a few flats and is not able to repay, banks would take charge of the property to recover their dues and this would influence the homebuyer. These situations can be prevented with the new directive by the authority since Cersai has the data of all properties against which loans have been approved.

Real estate developers will have to present a report from Cersai on security interests formed in the real estate project along with the encumbrances certificate while listing the project with the authority. In case no security interest has been created, the developer is required to render an undertaking confirming the same.

Additionally, the developer needs to present the Cersai report when it makes modifications to the security interests formed. As per the MahaRERA, the Cersai reports presented require to be generated within 10 days before the date of submission.

Image Source

Also read: MahaRera directs asks builders to reveal permission details to buyers

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered all realty developers to reveal the security interests formed by them on the projects listed with the authority. The decision is targeted at enhancing transparency and informing prospective homebuyers regarding any mortgage or loans taken by the developer against the houses they are about to purchase - or the project itself. This data is already available with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (Cersai), a central government firm for the purpose of working and managing a registry of such data. The purpose of Cersai organised under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act) is to limit loan frauds, like involving lending from various banks on the same property. Cersai has information in respect of the security interests generated from January 22, 2016, for listed commercial banks and, with effect July 1, 2016, for all other entities listed with it. From June 2017, it began data registration on a security interest in under-construction residential and commercial property. Additionally, MahaRERA has made it clear that homebuyers and allottees need to know such security interests formed on real estate projects and homes they are interested in buying. Several times, homebuyers acquire property without the knowledge of the mortgage or loan status of the property, and this leads to litigations and legal complexities. If the builder has availed of a loan by mortgaging inventory or a few flats and is not able to repay, banks would take charge of the property to recover their dues and this would influence the homebuyer. These situations can be prevented with the new directive by the authority since Cersai has the data of all properties against which loans have been approved. Real estate developers will have to present a report from Cersai on security interests formed in the real estate project along with the encumbrances certificate while listing the project with the authority. In case no security interest has been created, the developer is required to render an undertaking confirming the same. Additionally, the developer needs to present the Cersai report when it makes modifications to the security interests formed. As per the MahaRERA, the Cersai reports presented require to be generated within 10 days before the date of submission. Image Source Also read: MahaRera directs asks builders to reveal permission details to buyers

Next Story
Infrastructure Transport

Highway Guidelines 2.0

In August 2025, a Public Accounts Committee comprising members of the Lok Sabha and Rajya Sabha presented a report, ‘Levy and Regulation of Fees, Tariffs, User Charges etc on Public Infrastructure and Other Public Utilities in the context of the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI).Having examined present design accountability, subcontracting, pavement failures, emergency response mechanisms, toll reforms, service quality, stakeholder consultations and other aspects, the Committee presented recommendations covering the planning a..

Next Story
Infrastructure Transport

Railways approves major upgrade for Telangana traction lines

The Ministry of Railways has approved the upgradation of the electric traction system in two crucial railway sections — Medchal–Mudkhed (225 km) and Mahbubnagar–Dhone (184 km). The projects, costing Rs 1.93 billion and Rs 1.23 billion respectively, will enhance the electric traction capacity from 1X25 KV to 2X25 KV. The work includes modifications to circuit breakers and switching stations, along with the installation of additional conductors. These routes serve as vital links between Northern and Southern India via Hyderabad. Once completed, the upgraded system will reduce voltage dro..

Next Story
Infrastructure Transport

Adani to invest Rs 425 billion more in Maharashtra’s Dighi Port

The Adani Group has committed to invest an additional Rs 425 billion in the Dighi Port project, located along Maharashtra’s coastal Konkan belt, government officials announced on Monday. Adani Ports and Special Economic Zone (APSEZ)-run Dighi Ports signed a memorandum of understanding (MoU) with the Maharashtra government to undertake the expansion of the port and related infrastructure. This new commitment comes as part of a broader investment initiative by the state. Chief Minister Devendra Fadnavis said the agreement is among 15 MoUs worth over Rs 560 billion signed during the opening d..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?