MahaRERA has sent notices to 2,000 promoters. Notices will be sent to a total of 18,000 promoters within a month. The reason being laxity in registering and updating the ‘binding’ information related to the project on the MahaRERA website. Promoters not complying with the errors are liable to penal action from MahaRERA
As part of enabling the monitoring system of MahaRERA, MahaRERA has started reviewing the projects registered since 2017 after the establishment of MahaRERA. Because after registration of any housing project in MahaRERA, as per section 11 of RERA Act, the project promoter is required to update the information given at the time of registration on the website of MahaRERA every 3 months.
However, it was noticed that most of the projects have not recorded this information since registration. Therefore, Maharera has started sending show cause notices to all such projects on a project-wise basis. Out of a total 18,000 projects, such notices have been sent to 2,000 projects and notices will be sent to all within a month.
Notice is being sent to the registered e-mail address provided by these projects during registration. All these promoters have been given a period of 30 days from the date of notice to remedy the deficiencies. Even then, those who do not receive response, rectification of errors, promoters will be liable for penal action by MahaRERA. Also, the promoters will have to pay the fine from 30% of their amount.
According to the RERA Act, the promoter is required to keep 70 percent of the money received from customers by opening a separate account. When the money is withdrawn, at each stage of construction, a certificate from the project engineer, architect and chartered accountant on the percentage of project completion, quality, and unrealised cost must be submitted to the bank. A quarterly inventory of flats and plots sold in the project has to be posted 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and six months after the end of each year, it is mandatory to submit a Statutory Audit certifying that the amount withdrawn from this account has been withdrawn in proportion to the project completion and spent on the project itself.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 are required to submit information for a period of five years from 2017-18 to 2021-22. Assuming that there may be a break in updating this information due to the interim COVID crisis, 1 time concession has been given to provide 5 years of information in a single form at the end of every year. Which they are expected to do within a month. But for the year 2022-23, only quarterly form is required.
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