a loan on the project or a few apartments and is unable to settle their dues, the lender would take charge of the property, and this would affect the buyer. According to the Authority, such situations can be avoided by the new directive.
Under the new regulations, real estate developers in Maharashtra will be required to submit a report from the Cersai to the Authority, detailing their the security interests in the project, and in the case of no such interest, the developer should provide an undertaking confirming the same. Furthermore, if and when there are any changes made to the security interests created, the developer is expected to submit the Cersai report in such situations.
The Cersai was incorporated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act) of 2002. It has been maintaining data in respect of the security interests created from January 2016 for scheduled commercial banks and from June 2017, it started registration of data on security interest in residential and commercial property that is under construction.
