The Urban Development Department issued the notification on 22 September 2025, published in the Maharashtra Government Gazette. It modifies the existing framework under which developers were depositing the welfare and rehab corpus amounts in phases, often after selling part of the free-sale component.

This change is expected to plug financial leakages, ensure security of rehabilitation funds, and reduce delays in slum redevelopment schemes across Mumbai.

What the Old Rule Said

Previously, developers were required to pay ₹40,000 per tenement (or as decided by the Planning Authority) for the rehab component, including welfare hall and balwadi provisions.

This amount could be deposited over time—in line with the construction schedule approved by SRA—and sales of free-sale flats were allowed after partial payments.

This often led to situations where developers prioritized selling free-sale flats to raise working capital, delaying payments toward the rehabilitation corpus. In some cases, this resulted in rehab buildings getting stuck mid-way, leaving slum dwellers in limbo.

What the New Rule Mandates

Under the new policy, developers must now deposit the full welfare and rehabilitation corpus amount upfront—before obtaining building permission for the free-sale component.

The revised contribution structure is also linked to the height of the rehab building:

• Up to 70 m: ₹100,000 per tenement
• Above 70 m up to 120 m: ₹200,000 per tenement
• Above 120 m: ₹300,000 per tenement

Additionally, the building permission for the last 25% of the free-sale component will be granted only after the entire required amount is deposited with SRA.

This is a sharp increase from the earlier ₹40,000 per tenement base rate and removes the flexibility developers earlier had in staggering payments.

Why the Government Made This Change

According to the Urban Development Department, the move is in the public interest and is aimed at:

• Ensuring the financial security of slum rehabilitation components
• Preventing delays in rehab building construction due to non-payment
• Protecting slum dwellers, who are often the worst affected when projects stall
• Improving accountability in fund flow between developers and SRA

By collecting the corpus upfront, the state aims to create a more reliable financial cushion for executing the rehab component, which is often dependent on developer cash flows.

Impact on Developers and the Market

This policy will likely impact developer cash flows in the short term, as they will now need to tie up more upfront capital before launching free-sale flats.

However, industry experts say it could restore confidence in SRA schemes, speed up rehab construction timelines, and reduce disputes between developers, SRA, and beneficiaries.

For buyers of free-sale flats, this move adds an extra layer of security, ensuring that rehab obligations are financially secured before the sale of market units begins.

Also Read: Need for immediate changes to DC Rules: Hafeez Contractor

The post 🏗 Builders to Pay Corpus First in SRA Projects Before Selling Homes appeared first on Square Feat India.

In response to the recent fake construction document scandal in Kalyan-Dombivali, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has launched a sweeping verification drive for Occupancy Certificates (OCs) of 3,699 lapsed real estate projects across the state. The most affected is the Mumbai Metropolitan Region (MMR), with 1,819 projects under scrutiny, leaving their future hanging in the balance.

MahaRERA’s Directive to Planning Authorities

MahaRERA has issued letters to all concerned Planning Authorities, instructing them to verify the authenticity of the OCs uploaded on its portal by developers whose projects had previously lapsed. Developers had responded to MahaRERA’s notices by claiming completion and uploading OCs online.

Planning Authorities now have 10 days to confirm whether these OCs were genuinely issued. If no response is received within the stipulated time, MahaRERA will treat the certificates as authentic. Any discrepancies discovered later will result in complete liability falling on the concerned authority, including financial and legal consequences.

Why OC Verification Matters

Under RERA guidelines:

• Developers can only sell homes after project registration.
• Promoters must submit quarterly progress reports and audit updates.
• Upon completion, they must upload the OC issued by Planning Authorities.
• Only after MahaRERA accepts the OC can developers withdraw remaining project funds and cease regulatory disclosures.

This process ensures transparency and buyer protection, especially in cases of lapsed or delayed projects.

Breakdown of the 3,699 Projects by Region

Below is a region-wise and district-wise classification of the projects undergoing OC verification:

OC Verification Status: Region-Wise Distribution

District-Wise Breakdown

Mumbai Metropolitan Region (1,819 Projects)

Pune Region (1,223 Projects)

Nashik Region (273 Projects)

Chhatrapati Sambhajinagar Region (132 Projects)

Amravati Region (84 Projects)

Nagpur Region (168 Projects)

What’s Next for Homebuyers and Developers?

If Planning Authorities confirm the validity of OCs, these 3,699 projects will be officially marked as completed, allowing developers to move forward with fund withdrawals and closure of regulatory requirements. However, if discrepancies arise later, affected buyers could face legal complications and delays in possession.

MahaRERA’s firm stance ensures greater accountability and aims to prevent further misuse of the system by unauthorised developers, while safeguarding the interests of genuine homebuyers.

Also Read: MahaRERA cancels registration of 15 projects in KDMC

The post Fate of 1,819 Real Estate Projects in MMR in Limbo Amid OC Verification Drive by MahaRERA appeared first on Square Feat India.