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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has sent stern cancellation alerts to 563 housing project developers, as these parties failed to fulfil their reporting duties. The warnings issued are part of an initiative targeting 746 new residential projects, comprising 50,288 apartments worth approximately Rs 22,449 crore, all registered in January. Under the guidelines of the Real Estate (Regulation & Development) Act, 2016, developers must provide quarterly updates to the regulator post-registration, and annual financial reports. This mandate ensures that the prospective homebuyer has access to trustworthy information regarding the project's progression, costs, and related elements via the regulator's portal. MahaRERA provided a 15-day window in May to these developers, urging them to furnish updated information. However, only 183 developers complied, prompting the regulator to scrutinize the remaining 563 who failed to deliver the required updates. Consequently, these developers were served a notice to clarify why their project registration should not be cancelled. The regulator has set a response deadline of 45 days for these developers, warning that non-compliance could lead to project registration termination. This could result in a halt to all project-related transactions, such as banking activities, new registrations, and construction. Previously, MahaRERA issued similar notices to roughly 16,000 developers state wide. This was in response to unsatisfactory information regarding their projects. The Close Monitoring System, initiated by the regulator, has been regularly reviewing projects registered since its inception in May 2017 until March 2022. In January, MahaRERA flagged 19,500 projects that had failed to maintain required project updates under section 11 of the Real Estate Act, 2016. Unfortunately, over 16,000 developers either neglected to respond or provided inadequate responses. Moving forward, MahaRERA will closely monitor these projects' financial progress reports, starting from the first quarter of registration. Developers are required to provide updates whenever changes occur, including changes to the encumbrances report and fresh data from the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). Furthermore, they are expected to report alterations in project professionals, legal entities, or societies within three months of a majority of allottees securing their property.
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