MahaRERA suspends registration of 388 developers for not providing quarterly updates

MahaRERA has issued instructions to the concerned sub registrars to not register the agreement for sale and the sale deed of the flats in these projects.

Bank accounts of these developers’ projects are being frozen and they are banned from advertising, marketing and selling flats.

All these projects were registered in January this year and this decision has been taken by MahaRERA to enforce compliance of regulatory provisions from the very beginning.

Of the 388 projects, 127 are from MMR, 120 from Western Maharashtra, 57 each in North Maharashtra and Vidarbha, 16 in Marathwada and 11 in Konkan.

For the 746 projects registered with Maharera in January it was mandatiory till April 20 to update Forms 1, 2 and 3 on the MahaRERA website containing details of information such as how many flats, garages have been registered in the first 3 months, how much money has been received, how much has been spent, changes in the building plan (if any) etc.

Those developers who didn’t update, first were issued a notice to comply within 15 days by MahaRERA and even after this, those who didn’t were issued another show cause notice of 45 days asking them to comply and if they don’t then action of suspending their registration would be taken.

As a result, the bank accounts of these projects are being frozen and they will not be able to do advertise, market, or carry out sale of flats. Moreover, MahaRERA has instructed the concerned deputy registrars not to register any sale transaction (Agreement for Sale) and deposit in this project.

Basically, this is a legal provision in the RER Act so that this basic information is available at home to the customer who has invested or is planning to invest in these projects. MahaRERA has taken this strict action considering that this indifference of the developers towards the consumers is a violation of the rights of the consumers.

More than 100 of these developers have been sent an email regarding this order and the rest of the developers are also being informed about this decision in the next 2-3 days.

These are the projects registered in January 23. These projects were required to file, update these quarterly forms by April 20. Initially only 3 people updated this information. After sending the notices, 358 developers have responded and 388 have not responded.