Maharashtra Government suggests to include real estate companies under MPID Act

11 May 2018 Editorial Team

The Maharashtra Protection of Interest of Depositor Act (MPID) is mainly to book those who float Ponzi schemes and focused to recover investors’ money. The suggestion by the Maharashtra Government to include real estate companies in the Act is a direct measure on the Central Government’s decision to term assured returns in real estate investment as ‘ponzi’ schemes. The Central Government’s primary intention is to safeguard buyers’ or investors’ interest. However, this will imply that there will be a loss of cheaper funding sources for developers. Today, the cost of funding can be anywhere between 15 per cent to 25 per cent for Tier-II developers, which is much higher than the 9 per cent to 12 per cent that investment schemes of this nature would command.

To ensure that the investment schemes are safe, real estate developers should ensure they take cues from SEBI regulations. Further, it is important that developers and projects are registered with the state RERA Act, which will ensure that they comply with statutory requirements. A rating system could be devised for developers, on similar lines of stocks and credit ratings. This independent rating system would rate companies on parameters such as construction risk, legal risk, financial risk and marketing risk. A strong rating for companies will be a definite way of attracting investments, both from institutions as well as on the retail level.

About the Author:
Ramesh Nair is CEO and Country Head at JLL India.

Building Material

11 Dec 2025

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..