Now Reading: Maharashtra Considers Capping Builder Payments at 80% Before Registration
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Maharashtra Considers Capping Builder Payments at 80% Before Registration
Maharashtra Considers Capping Builder Payments at 80% Before Registration
Maharashtra is considering an amendment to the Registration Act that would limit builders to collecting 75% to 80% of a flat’s price when buyers sign an agreement to sell. The remaining 20%…
The Story in Brief
Maharashtra is considering an amendment to the Registration Act that would limit builders to collecting 75% to 80% of a flat’s price when buyers sign an agreement to sell. The remaining 20% would be payable at final registration, revenue minister Bawankule said, according to ETRealty. The proposal aims to prevent builders from taking the full amount before completing construction.
Bawankule also gave Nagpur builders three months to correct deviations from approved plans, secure occupancy certificates and complete registration. Builders accused of defrauding buyers will face action, while those with minor deviations may regularise them. The minister said unauthorised structures would be removed, regardless of the builder’s size.
The Indian Opinion
Claims that the proposal alone will end buyer exploitation would be premature. A payment cap can protect purchasers, but it will work only if officials verify construction, occupancy certificates and title records before registration. Builders should not treat a three-month compliance window as a routine extension, while minor deviations must not become a route to regularise unsafe work. The first test is whether the amended law is notified and enforced, and how many projects secure valid occupancy certificates within three months.
Source: realty.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
