MahaRERA Suspends 1,950 Real Estate Projects for Non-Compliance
10 Jan 2025 CW Team
To safeguard homebuyers' interests, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has suspended the registration of 1,950 real estate projects statewide after developers failed to respond to notices about status updates. Over 3,499 additional lapsed projects are likely to face similar action, according to a MahaRERA statement on January 9.
The regulatory authority has also frozen the bank accounts of these developers. This enforcement follows show-cause notices issued in December 2024 to 10,771 projects, primarily in the Mumbai Metropolitan Region, for failing to comply with mandatory disclosure requirements on MahaRERA’s website. Developers were given 30 days to submit Form 4, which indicates project completion, along with the Occupation Certificate (OC) or to apply for deadline extensions with the requisite documents.
Out of the 10,773 projects flagged for non-compliance, developers of 5,324 projects responded. Of these, 3,517 projects submitted their OCs, and 524 sought deadline extensions. The remaining 1,283 responses are under scrutiny, while 1,950 projects have had their registrations suspended, and transaction-related restrictions have been imposed.
MahaRERA revealed that similar action is underway against another 3,499 housing projects that have not replied to the notices. The affected projects span Maharashtra, including major urban centers like Mumbai, Pune, Nagpur, and Nashik.
Chairman of MahaRERA, Manoj Saunik, emphasised that the Real Estate (Regulation and Development) Act, 2016, prioritises transparency, accountability, and financial discipline in the real estate sector to protect homebuyers. He highlighted that regular status updates, both quarterly and annually, are mandatory for all registered projects. However, compliance has been limited.
In January 2023, a review by MahaRERA’s compliance cell revealed that only three out of 748 projects had updated their information. Following sustained follow-ups, significant progress has been made, as seen in the responses to lapsed project notices. Nevertheless, Saunik noted the substantial number of non-compliant projects and reiterated that MahaRERA’s actions aim to protect homebuyers’ interests and uphold transparency in the sector.
(Hindustan Times)