MahaRERA Limits SRO Appointee Tenure to Two Years to Prevent Conflict

15 Jan 2025 CW Team

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has set a two-year tenure limit for representatives appointed by Self-Regulatory Organisations (SROs) assisting with housing project registrations. This decision aims to prevent potential conflicts of interest. In a directive to SROs, MahaRERA has instructed the immediate replacement of representatives who have completed two years. Additionally, the authority emphasised that appointees must be subject matter experts in legal, financial, or technical fields, which are critical for the housing project registration process. “The registration process involves rigorous scrutiny of legal, financial, and technical aspects, and this requires domain expertise from SRO representatives. Therefore, appointing specialists and setting a maximum tenure of two years is essential,” stated Manoj Saunik, chairman of MahaRERA. Currently, seven SROs are recognised by MahaRERA, including NAREDCO West Foundation, CREDAI-MCHI, CREDAI Maharashtra, Builders Association of India, Marathi Bandhkam Vyavsayik Association, Brihanmumbai Developer Association, and CREDAI-Pune. As per the Real Estate (Regulation and Development) Act, 2016, all housing projects must obtain a MahaRERA registration number before being advertised, promoted, or sold. The authority meticulously scrutinises each proposal based on legal, financial, and technical criteria before granting registration. SRO representatives play a key role in assisting member developers through the registration process by addressing observations raised by MahaRERA. To ensure seamless support, the authority mandates that SROs appoint representatives with expertise in at least one of the three critical domains and rotate appointees as required. MahaRERA has clarified that only one representative per SRO is permitted and emphasised the need for their presence on a rotational basis to meet the requirements of member developers.

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