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Land speculation in Navi Mumbai has surged due to the activities of a coalition of small-scale developers, aided by property brokers. These developers have elevated speculation by acquiring CIDCO plots through auctions, often quoting sky-high rates—sometimes 3 or 4 times the reserved price. Subsequently, they began selling apartments without the necessary permissions or allotment letters from CIDCO. Despite lacking registration with the MahaRERA, the state real estate regulatory authority, bookings were made. Reports from local property market sources reveal that investors and homebuyers were enticed by huge discounts offered on these unregistered projects, making them ignore the registration issue. However, MahaRera recently took stringent action against these practices. Earlier this year, Kharghar witnessed boards advertising rates as low as Rs 4,000 per sq ft on certain plots, significantly below the prevailing rates of Rs 9,000-plus in the region. Concerned activists in Kharghar raised warnings through hoardings in September, cautioning individuals about potential deception by several small developers showcasing building plans to attract buyers. The allure of substantial discounts—ranging from 50% to 60% below the market rate—led people to book apartments despite the absence of building plans or permissions, driven largely by greed and speculation. According to sources, these developers amassed huge funds—amounting to hundreds of crores—to repay Cidco for the plots acquired in these auctions. Following a complaint, the MahaRERA issued a show cause notice to Bhagwati Group for advertising a project on a Kharghar plot without registering it with MahaRERA. Despite the notice, the developer neglected to appear before the authority. In an order dated October 13, 2023, the authority referenced Section 3 of RERA, emphasising that no promoter should advertise, market, or sell any plot, apartment, or building without registering the project. The MahaRERA secretary directed written communication to CIDCO, stipulating no additional authorization for the project until proper registration with MahaRERA is completed. Similar orders were issued against Gami & Krishna Enterprises LLP and Gami Group for their respective projects in Kharghar. The situation highlights the vulnerabilities within the real estate market, emphasising the importance of regulatory compliance and transparency in property dealings. Ensuring compliance with regulatory bodies like MahaRERA is imperative for maintaining the integrity of real estate transactions. The actions undertaken by MahaRERA indicate a commitment to uphold regulatory standards and safeguard the interests of homebuyers and investors.
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