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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken decisive action, suspending the registrations of over 388 real estate projects. MahaRERA enacted these stringent measures because developers failed to comply with the mandatory quarterly information updates required by the Real Estate (Regulation & Development) Act of 2016. This regulatory body, in a statement released on September 18, has further directed sub-registrars to abstain from facilitating the registration of sale agreements and deeds for flats within these suspended projects. Under the Act's provisions, real estate developers bear the responsibility of registering their projects with MahaRERA.
Additionally, they are obligated to provide regular updates concerning project-related information on a quarterly basis. These updates entail crucial details, including the number of apartments sold and registered during each quarter, the funds received, expenses incurred, and any alterations made to the construction plan. In addition to these quarterly updates, project promoters are mandated to report any changes that may transpire among their project professionals. This encompasses alterations involving architects, engineers, chartered accountants, real estate agents, and the formation of legal entities or companies. These updates must be furnished within three months of the majority of successful bidders reserving their plots, apartments, or buildings.
The genesis of this situation traces back to January, when MahaRERA initiated the process by issuing notices to 746 developers, urging them to update their project information. Initially, this call to action was heeded by only three developers. Subsequently, additional notices were dispatched, prompting approximately 358 developers to respond. In stark contrast, the remaining 388 project developers continued to disregard these regulatory requirements, not responding to the notices. For those developers who continued to flout these requirements, notices were issued with a 15-day deadline for response. Those who persisted in non-compliance received a final notice, granting them 45 days to provide reasons why their projects should not face suspension, as detailed in MahaRERA's statement.
As a culmination of these developments, MahaRERA, faced with the continued non-compliance of these 388 project promoters, made the resolute decision to suspend the registrations of their projects. This suspension effectively translates to a prohibition on these developers from engaging in activities such as advertising, marketing, or selling apartments within the affected projects. Additionally, the bank accounts associated with these projects have been placed under freeze. Of the 388 suspended projects, 127 are located in the Mumbai Metropolitan Region (MMR), 120 in western Maharashtra, 57 in northern Maharashtra and Vidarbha, 16 in Marathwada, and 11 in the Konkan region.
MahaRERA has implemented these stringent measures to ensure compliance with the law and to provide homebuyers with access to consistently updated information about the projects in which they have invested. By implementing these measures, MahaRERA aims to be a safeguard for homebuyers, providing them with a secure and dependable source of information regarding specific housing projects. Crucial details, including information on project progress, associated costs, and various other pertinent aspects, are conveniently available through the regulator's portal, serving the interests of both developers and homebuyers alike.
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