As part of enabling the Monitoring System of MahaRERA, the authority has started reviewing the projects registered since its inception in May 2017 till March 2022. As a result, MahaRERA has sent show cause notices to 19,539 projects which have not updated the mandatory project information as per section 11 of the RERA Act.
All these developers have been given 30 days from the date of notice to rectify the errors. Even then, those who do not respond, and rectify errors, those promoters will be liable for penal action by MahaRERA. They will have to pay 30 per cent penalty from their account.
Because after registering any housing project in MahaRERA, as per Section 11 of RERA Act, the project developer is required to update the information given at the time of registration on the website of MahaRERA every 3 months. It is essential for the homebuyer to know the project status from time to time. However, it was observed that most of the projects had not recorded this information since registration.
According to the RERA Act, the developer is required to keep 70 percent of the money received from the customers by opening a separate account as per the RERA registration number. At the time of withdrawing this money at each stage of construction from the bank, it is required to submit the certificate of project engineer, architect and chartered accountant on percentage of project completion, quality, cost of construction respectively. Quarterly inventory of how many flats and plots sold in the project is also mandatory to be updated on the website.
Most importantly, it is mandatory to audit the project account every six months and six months after the end of each year, it is mandatory to submit a Statutory Audit certifying that the amount withdrawn from this account has been withdrawn in proportion to the project completion and spent on the project itself.
All these promoters have to submit information for the period of five years from 2017-18 to 2021-22. As a one-time special concession, this information of 5 years has to been given in one form, together. However, for the year 2022-23, this information is to be updated on the Authroity’s website only on a quarterly basis.
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