The Maharashtra Real Estate Regulatory Authority i.e. MahaRERA made amendments to the rules and clearly stated that the developers in the State cannot include the advertisement cost to that of the construction cost.
As per the RERA regulations, the developers are required to submit 70 percent of the collected funds into the escrow account. These funds can only be withdrawn after receiving the necessary certificates from both the architect and the chartered accountant. The separate account creation is introduced to keep a check on amount collections made by the developers and also to check if this amount is being used inappropriately for the construction of other projects that reflect as stalling of the ongoing project for which the amount has been raised.
On 6th June, the State housing department issued a notification that stated, the development cost or cost of construction of the project should not be included toward marketing and brokerage expenses for the sale of flats. All such expenses, however, are the part of a project cost shall not be borne from the amount that is required to be deposited in the designated separate account.
Gautam Chatterjee, chairperson, MahaRERA said that most of the time, the developers show the cost of full-page ads also in this account. But now, these marketing expenses can only be shown under the remaining 30 percent. This move will allow the maximum use of collected money from the homebuyers in the construction of the project.
MahaRERA Chairman also said that the broker or the real estate agent involved in a property deal must get his/her dues from both the sides according to the terms and conditions laid by the RERA authority. Apart from this, the brokers or the real estate agents can file a complaint and the authority will hear the same.
The amendment received mixed-response however the unanimous review called these amendments are pro-customers.