The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued show cause notices to approximately 11,000 lapsed housing projects across the state. Developers have been directed to respond within 30 days by either submitting their Occupancy Certificate (OC) along with Form 4 or seeking an extension of their project deadline. Failing to comply could lead to suspension or cancellation of project registrations, restrictions on the sale of flats, and freezing of associated bank accounts.
MahaRERA Chairman Shri Manoj Saunik emphasized the significance of compliance, stating:
“Through the Compliance Cell, MahaRERA has initiated micro-monitoring of the real estate sector at multiple levels. Presently, in Maharashtra, there are 10,773 real estate projects that have lapsed, leading to investments of several homebuyers getting stuck. Developers must submit their OC with Form 4 or seek a deadline revision. If no action is taken within the 30-day window, MahaRERA will have no alternative but to cancel or suspend registrations, restrict sales, and freeze bank accounts. The industry must avoid reaching such situations.”
Massive Backlog of Lapsed Projects
The Mumbai Metropolitan Region (MMR) tops the list of lapsed projects with 5,231, followed by Pune (3,406), Nashik (815), Nagpur (548), Sambhaji Nagar (511), Amravati (201), Dadra & Nagar Haveli (43), and Daman & Diu (18).
Strict Regulatory Framework
MahaRERA’s action stems from violations of Section 11(1)(b), (c), (d), and (e) of the Real Estate (Regulation and Development) Act, 2016, which mandates quarterly updates on project progress. Developers are required to upload annual reports and project statuses on MahaRERA’s website.
As per Order 33/2022, issued in July 2022, MahaRERA clarified the consequences for non-compliance, including suspension of registrations, punitive measures, restrictions on sales, and freezing of project-related bank accounts.
Developer Responsibilities
To obtain a MahaRERA registration, developers must declare a clear project completion date. Towards the deadline, they are expected to submit an OC along with Form 4, certifying project completion. In case of delays, they must either apply for a deadline extension or de-register the project.
MahaRERA has taken a firm stand on projects that fail to meet these obligations, ensuring that homebuyer investments are protected and developers adhere to regulatory standards.
Also Read: MahaRERA Annual Report
