Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The Maharashtra Real Estate Regulation Authority announced this week that 313 significant projects throughout the state have received show-cause notices as a result of a report from an external auditor that identified a number of issues. The watchdog hired a reputable audit firm as part of its duty to examine projects at a micro level and the letters have been given to projects that the firm red-flagged, according to an official statement.
It noted that there are instances when a developer has claimed 75% of the projected spending is done but the project is only 50% complete as examples of the flaws, including the developer's claimed total cost that is not being reflected on the ground. The statement added that the audit took into consideration statutory progress reports filed with Maharera, ratings of a developer and information from bankruptcy courts in cases where the intended date of completion is less than six months away yet the work is less than half complete.
According to the Maharera statement, investigators with experience in banks and the income tax recovery division have been instructed to inspect these projects. The statement warned that if a developer doesn't comply, the investigator's findings will be deemed conclusive and appropriate action will be taken. The statement claimed that of the projects for which notices have been given suburban Mumbai has the most with 109, followed by Thane which is nearby with 58, Pune with 56 and Mumbai City with 44.
The Real Estate (Regulation and Development) Act 2016 also known as the RERA Act, was passed by the Parliament with the intention of safeguarding the rights and interests of consumers by reducing developer fraud and fostering uniform business practises and real estate transactions. The Real Estate Regulatory Authority (RERA) Act, which went into effect on May 1st, 2017, was designed to safeguard the rights of buyers in the real estate industry and to create a framework for quick dispute resolution.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
