The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken stringent action against developers of lapsed housing projects who failed to comply with its directives. Out of 10,773 projects that received show cause notices for failing to update their status on MahaRERA’s portal, 1,950 projects have already had their registrations suspended. The bank accounts of these projects have been frozen, and transactions have been restricted to safeguard the interests of homebuyers.
In the first phase, MahaRERA issued a 30-day deadline for developers to respond to the notices. Developers of 5,324 projects submitted replies, with 3,517 providing their Occupancy Certificates (OC) and 524 seeking extensions for project completion. The responses of 1,283 projects remain under scrutiny.
However, 3,499 projects have not responded, prompting MahaRERA to initiate further action. These projects risk suspension of registration, transaction restrictions, and other penal measures.
Promoting Accountability and Transparency
MahaRERA Chairman Manoj Saunik highlighted the critical role of transparency and accountability in the real estate sector. “The primary objective of the Real Estate (Regulation and Development) Act, 2016 is to ensure transparency, accountability, and financial discipline in the real estate sector, ultimately protecting homebuyers’ interests,” he stated.
He noted that while the law mandates quarterly and annual updates on project status, compliance has been inconsistent. “In January 2023, only three out of 748 projects had submitted the required information. However, consistent follow-ups have resulted in significant improvement, as seen in the response to our recent show cause notices,” Saunik added.
Strict Measures to Enforce Compliance
Developers registering with MahaRERA must declare their project’s proposed completion date and update the authority if there are delays. They must submit Form 4 with the OC upon completion or apply for an extension if required. Quarterly Progress Reports (QPRs) and annual updates are also mandatory.
Non-compliance with these obligations has led to the suspension of defaulting projects and freezing of their bank accounts. MahaRERA has also instructed Joint District Registrars not to process transactions for these projects, further tightening measures to enforce compliance.
The authority has reiterated its commitment to protecting homebuyers and ensuring that developers adhere to the timelines and reporting requirements outlined in the Real Estate Act.
With 1,950 registrations already suspended and more stringent action expected against non-responding projects, MahaRERA continues its robust efforts to bring transparency and discipline to the real estate sector.
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