FAQ - PCMC Real Estate Property Guide Portal


Frequently Asked Questions

(Complete Guide for Property Buyers)

  • RERA Guide
  • Hinjawadi Property Guide
RERA Guide
What is RERA Act?

The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act passed by the Indian Parliament to protect the interests of home buyers and also boost investments in the real estate sector.

All you need to know about Real Estate Act (RERA)

Under the Real Estate Act, the central and state governments, are required to notify their own rules under the Act, six months, on the basis of the model rules framed under the central Act. The Real Estate (Regulation & Development) Act, 2016 (RERA) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. The Rajya Sabha passed the RERA bill on March 10, 2016, followed by the Lok Sabha on March 15, 2016 and it came into force from May 1, 2016 . 59 of its 92 sections were notified on May 1, 2016 and the remaining provisions came into force from May 1, 2017. Under the Act, the central and state governments, are required to notify their own rules under the Act, six months, on the basis of the model rules framed under the central Act.

How will RERA impact home buyers

Some of the important compliances are:

  • Informing allottees about any minor addition or alteration.
  • Consent of 2/3rd allottees about any other addition or alteration.
  • No launch or advertisement before registration with RERA Consent of 2/3rd allottees for transferring majority rights to 3rd party.
  • Sharing information project plan, layout, government approvals, land title status, sub-contractors.
  • Increased assertion on the timely completion of projects and delivery to the consumer.
  • An increase in the quality of construction due to a defect liability period of five years.Formation of RWA within specified time or 3 months after majority of units have been sold.
  • Formation of RWA within specified time or 3 months after majority of units have been sold.
  • The most positive aspect of this Act is that it provides a unified legal regime for the purchase of flats; apartments, etc., and seeks to standardise the practice across the country. Below are certain key highlights of the Act:

Establishment of the regulatory authority:

  • The absence of a proper regulator (like the Securities Exchange Board of India for the capital markets) in the real estate sector, was long felt. The Act establishes Real Estate Regulatory Authority in each state and union territory. Its functions include protection of the interests of the stakeholders, accumulating data at a designated repository and creating a robust grievance redressal system. To prevent time lags, the authority has been mandated to dispose applications within a maximum period of 60 days; and the same may be extended only if a reason is recorded for the delay. Further, the Real Estate Appellate Authority (REAT) shall be the appropriate forum for appeals.
  • According to the central act, every real estate project (where the total area to be developed exceeds 500 sq mtrs or more than 8 apartments is proposed to be developed in any phase), must be registered with its respective state’s RERA. Existing projects where the completion certificate (CC) or occupancy certificate (OC) has not been issued, are also required to comply with the registration requirements under the Act. While applying for registration, promoters are required to provide detailed information on the project e.g. land status, details of the promoter, approvals, schedule of completion, etc. Only when registration is completed and other approvals (construction related) are in place, can the project be marketed.
  • One of the primary reasons for delay of projects was that funds collected from one project, would invariably be diverted to fund new, different projects. To prevent such a diversion, promoters are now required to park 70% of all project receivables into a separate reserve account. The proceeds of such account can only be used towards land and construction expenses and will be required to be certified by a professional.
  • After the implementation of the Act, home buyers will be able to monitor the progress of the project on the RERA website since promoters will be required to make periodic submissions to the regulator regarding the progress of the project.
  • Promoters are now required to make a positive warranty on his right title and interest on the land, which can be used later against him by the home buyer, should any title defect be discovered. Additionally, they are required to obtain insurance against the title and construction of the projects, proceeds of which shall go to the allottee upon execution of the agreement of sale.
  • The Act prescribes a standard model sale agreement to be entered into between promoters and homebuyers. Typically, promoters insert punitive clauses against home buyers which penalised them for any default while similar defaults by the promoter attracted negligible or no penalty. Such penal clauses could well be a thing of the past and home buyers can look forward to more balanced agreements in the future.
  • To ensure that violation of the Act is not taken lightly, stiff monetary penalty (up to 10% of the project cost) and imprisonment has been prescribed against violators.
RERA definition of carpet area

The area of a property is often calculated in three different ways – carpet area, built-up area and super built-up area. Hence, when it comes to buying a property, this can leads to a lot of disconnect, between what you pay and what you actually get. Gautam Chatterjee, Maharashtra RERA chairman, explains that “It is now mandatory for the developers of all ongoing projects, to disclose the size of their apartments, on the basis on carpet area (i.e., the area within four walls). This includes usable spaces, like kitchen and toilets. This imparts clarity, which was not the case earlier.” According to the RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’. Rahul Shah, CEO of Sumer Group, points out that “As per the RERA guidelines, a builder must disclose the exact carpet area, so that a customer knows what he is paying for. However, the act does not make it mandatory for the builders, to sell a flat on the basis of carpet area.”

Maharashtra RERA

The Maharashtra Real Estate Regulatory Authority (MahaRERA) came into existence on May 1, 2017. Deemed as one of the most active real estate regulatory authorities in India, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has over 25,000 registered projects and 23,000 registered property agents, as of February 27, 2020. The Authority has also got over 10,000 complaints, out of which 71% have been disposed of.

Maharashtra becomes the first state to initiate conciliation mechanism

Aggrieved home buyers in Maharashtra, may be able to look forward to an early and amicable resolution of their disputes with their developers, with Maharashtra becoming the first state in India to initiate the conciliation mechanism under Section 32 (g) of the RERA, by way of Alternative Dispute Resolution (ADR). The conciliation process will go online from February 1, 2018 and hearings before the conciliation benches are expected to commence from the first week of March 2018. Any aggrieved allottee or promoter (as defined under RERA) can invoke the conciliation mechanism set up by MahaRERA . For this purpose, a dedicated website has been created and one can have access to it even via the MahaRERA website.

Which projects come under RERA

Commercial and residential projects including plotted development. Projects measuring more than 500 sq mts or 8 units. Projects without Completion Certificate, before commencement of the Act. The project is only for the purpose of renovation / repair / re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project, will not come under RERA. Each phase is to be treated as standalone real estate project requiring fresh registration.

What information does a builder need to provide under RERA
  • Number, type and carpet area of apartments
  • Consent from affected allottees for any major addition or alteration.
  • Quarterly updating of RERA website with details such as unsold inventory and pending approvals.
  • Project completion time frame.
  • No false statements or commitments in advertisement.
  • No arbitrary cancellation of units by promoter.
How to file a complaint under RERA?

Digbijoy Bhowmik, head of policy, RICS, explains, “Complaints can be filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016, either with the Real Estate Regulatory Authority or the adjudicating officer. Such complaints may be against promoters, allottees and/or real estate agents. Most state government rules, made appurtenant to the RERA, have laid out the procedure and form, in which such applications can be made. In the case of Chandigarh UT or Uttar Pradesh, for instance, these are placed as Form ‘M’ or Form ‘N’ (common with most other states and union territories).” A complaint under the RERA , is required to be in the form prescribed under the respective states’ rules. The complaint can be filed with respect to a project registered under RERA, within the prescribed time limit, for violation or contravention of provisions of the act or the rules or regulations framed under RERA. “For cases pending before the NCDRC or other consumer fora, the complainants/ allottees can withdraw the case and approach the authority under the RERA. Other offences (except complaints under Section 12, 14, 18 and 19) can be filed before the RERA authority,” explains Ajay Monga, partner at SNG & Partners law firm.

Applicable penalties under RERA

Registration secured through misrepresentation or fraud Breach of terms for which registration obtained

  • Contravention of Section-9 & Section 10
  • Contravention of orders of RERA authorities
  • Contravention of orders of Appellate tribunal
Benefits of RERA
  • Governance and transparency
  • Project efficiency and robust project delivery
  • Standardization and quality
  • Enhance confidence of investors
  • Attract higher investments and PE funding
  • Regulated Environment
  • Common and best practices
  • Increase efficiency
  • Consolidation of sector
  • Corporate branding
  • Higher investment
  • Increase in organised funding
  • Significant buyers protection
  • Quality products and timely delivery
  • Balanced agreements and treatment
  • Transparency – sale based on carpet area
  • Safety of money and transparency on utilisation
  • Consolidation of sector (due to mandatory state registration)
  • Increased transparency
  • Increased efficiency
  • Minimum litigation by adopting best practices
Hinjawadi Property Guide
Pune has an investment secret – it’s called Hinjawadi
  • “Invest Today, Prosper Tomorrow” is an adage that still stands true for anyone who wishes to invest in Pune. The city has expanded rapidly in the last few decades. Whenever you hear the word IT in Pune, the first name that comes to your mind is Hinjawadi.
  • Until the year 1998, it was a small laid back village on the north-western outskirts of the city. Today, it has evolved as a favored office address of a few lesser-known and various well-known IT and ITeS companies. Having said that, it has also become a key investment destination for Mumbai-based investors, who consider Pune as a potential investment destination. The reasons for the same are obvious.
  • A Healthy Real Estate Market Space crunch, exorbitant property prices, and infrastructure deadlock in Mumbai are driving real estate investors towards Pune. Hinjawadi offers a perfect solution to all these in its way. Let’s see how:
  • Most prestigious housing projects in Hinjawadi are located in Phase I, II, and III near IT locations. This is quite unlike Mumbai, where in most cases, housing and commercial areas are located far from each other.
  • Property prices in Hinjawadi have grown at a steady phase. There has been a 12.4% increase in prices between 2017 and 2019. Even after this, you can afford a luxury 2 BHK apartment at a modest price tag of Rs 70 lakhs and above. The same may cost you 2 crore or more in a lanky Mumbai suburb.
  • Hinjawadi is one of the most happening places in Pune with its modern lifestyle amenities and exemplified civic, as well as social infrastructure.
  • Nowhere But Here Externally, it looks like a fast-expanding IT hub, which hosts some of the big international IT companies like IBM, Infosys, TCS, among others and is luring smaller ones to set up their bases. Internally, it has become a preferred residential hub of techies who love walking to their workplaces to save on their travelling time. In between these two phases are a host of social amenities such as shopping centres, malls, entertainment areas, schools, restaurants, hospitals, and wellness centers – that assure a luxury of modern life.
  • Hinjawadi is well-connected to other parts of Pune through NH-48 and several internal roads. It is connected to the city of Mumbai through Mumbai-Pune Expressway and Mumbai-Bangalore Highway. By 2020, the place will get a new lease of life with Line 3 Metro – a 23.3 km stretch connecting Hinjawadi and Shivajinagar.

Source: kasturi.com

Hinjewadi property market
  • Hinjewadi is one of the rapidly developing suburban areas of Pune and is located very close to the industrial zones and the IT hubs of Pune. The area has good civic amenities and is very well-connected to other parts of the greater city of Pune Hinjewadi is a premier residential area located in the western suburbs of Pune. This was a rural area till the Rajiv Gandhi Infotech Park came up.
  • Nearby Hinjewadi localities include many famous areas of the city of Pune such as Rihe, Tathawade, Wakad, Balewadi and Lavale. The varieties of the projects available in this area are many and they range from affordable to luxurious. There are a lot of reputed builders like the Vascon Engineers , Megapolis and Paranjape Schemes Constructions, who are working on their different projects in Hinjewadi . Some of the premier projects in Hinjewadi include Paranjape Blue Ridge , Peninsula Ashok Meadows and Kasturi Eon Homes .
  • Due to the advent of various IT majors and other multi-national companies (MNCs), the city of Pune has been witnessing a rapid growth in influx of working population from outside the city. As a result, there has been a surge in the demand for residential apartments in Hinjewadi with it being one of the noted suburbs of Pune Even though the prices of the flats in Hinjewadi are going up at a rapid pace, affordable housing to suit the needs of the mid and the junior-level executives of the various companies, can still be found here.
  • The Maharashtra government has proposed to develop Hinjewadi as an integrated township and there are plans drawn for a number of infrastructure projects to be implemented. Plans have been proposed by the Pune Metropolitan Region Development Authority to develop a metro route between Hinjewadi and Shivaji Nagar.
  • The civic amenities have also improved. The industrial growth and the growth of the IT sector have led to the development of retail and hospitality sectors in the area.
Connectivity with nearby Hinjewadi localities

There are a few major roads which run through the area namely The Hinjewadi Road and The Mumbai-Bengaluru Highway.

  • The area has extensive bus services with the Hinjewadi Bus Stand and the Pimpri Bus Stand lying in close vicinity.
  • There is a railway station at Pimpri from which railway services can be availed.
  • The railway station is approximately 12 kilometres away from Hinjewadi.
  • It takes about an hour from Hinjewadi to reach the airport in Pune.
Employment hubs near Hinjewadi
  • Rajiv Gandhi Infotech Park is located within the locality of Hinjewadi.
  • DLF Akruti IT Park is located at a distance of approximately 2 kilometres .
  • Panchshil Tech Park is approximately 6 kilometres away.
  • International Tech Park is located approximately 9 kilometres away from the locality .
Schools in Hinjewadi and other social amenities

Hinjewadi offers very good social infrastructure to its residents. Some of the reputed schools in Hinjewadi include the Mercedes-Benz International School , Blue Ridge Public School and Pawar Public School . Some of the leading hospitals in Hinjewadi include the Sanjeevani Hospital , Mediplus Speciality Hospital Pvt Ltd and Hinjawadi Hospital . The shopping needs of the residents are catered to by malls in Hinjewadi such as the White Square, Spot 18, City One Mall, etc.

Price trends in Hinjewadi
  • Price appreciation- Around 20% in the last one year.
  • Current property rates- Rs 4,859 – Rs 6,744 per sq ft.
Reasons to invest in Hinjewadi

Price trends in Hinjewadi and the rising demand, the locality would prove to be a good investment. There is excellent appreciation of property rates with a number of projects being developed here. Moreover, the area is one of the IT/ITES hub and industrial zones of Pune. The Maharashtra government has proposed to develop Hinjewadi as an integrated township, so the scope of development of infrastructure facilities is also there. Considering all these factors, Hinjewadi is an excellent place for investment.

*Disclaimer(Source : housing.com, Kasturi.com)

Our Realty Project Partners

Looking for a Right fit Property ?

PCMC Real Estate Property Guide Portal We would like to show you notifications for the latest news and updates.
Allow Notifications