Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced a key revision in the eligibility criteria for establishing Self-Regulatory Organisations (SROs). The change, which lowers the threshold for SRO formation from 500 to 200 projects outside the Mumbai Metropolitan Region (MMR), is expected to enhance accessibility to regulatory guidance and encourage stricter compliance with real estate laws.
The new guidelines are part of MahaRERA’s broader strategy to ensure that developers across the state adhere to necessary regulations, helping streamline project registration, documentation, and overall compliance. Until now, developers outside MMR faced challenges in accessing timely support and guidance, a gap that this policy revision seeks to address. The revised criteria make it easier for smaller organisations to form SROs, thus broadening the scope of regulatory assistance for developers. Since its inception, MahaRERA has required that all real estate developers register their projects. However, despite this mandate, numerous developers have failed to meet registration deadlines or provide the necessary paperwork, resulting in significant delays in the processing of project registrations, renewals, and required corrections. The revision to the SRO criteria aims to counter these delays by enabling organisations to offer expert advice to developers, ensuring they comply with regulatory procedures.
SROs were first introduced by MahaRERA in 2019 as official entities that represent developers in the state. These organisations assist builders by guiding them through the regulatory framework, ensuring they meet the required compliance standards. Developers must be members of one of the recognised SROs when registering projects with MahaRERA. This system was created to streamline the process and prevent developers from bypassing regulations through intermediaries or agents. Currently, there are seven SROs officially recognised by MahaRERA, including well-known associations such as NAREDCO West Foundation, CREDAI-MCHI, CREDAI Maharashtra, and the Builders Association of India. The primary role of these organisations is to act as intermediaries between MahaRERA and developers, ensuring that any gaps or issues in project registrations are promptly addressed.
By reducing the eligibility threshold for SRO formation outside MMR, MahaRERA aims to foster more participation from regional organisations. This is expected to lead to better regulatory compliance among developers, particularly in non-MMR areas, where the real estate market has been less regulated. As more developers join SROs, the overall quality and transparency of the industry are expected to improve. This strategic revision has the potential to benefit not just developers but also homebuyers, as it promotes a more regulated environment. With the additional support of SROs, developers will be better equipped to comply with the regulations, ultimately leading to smoother project executions and a more reliable housing market. Maharashtra RERA’s move to ease SRO criteria is a significant step towards improving regulatory compliance in the state’s real estate sector. By broadening the access to regulatory guidance and encouraging greater participation from developers, MahaRERA is taking a proactive approach to enhancing the transparency and efficiency of the housing market. This change is likely to foster a more compliant, well-regulated environment, benefiting both developers and homeowners alike.