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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken a strict stance against developers and promoters in the state who have not provided satisfactory information about their projects. As part of the Close Monitoring System, MahaRERA has reviewed projects registered since its inception in May 2017 until March 2022.
In January, MahaRERA had issued show cause notices to 19,500 projects that had not updated mandatory project information according to section 11 of the Real Estate (Regulation & Development) Act, 2016. However, over 16,000 project promoters have either not responded to these notices or have submitted unsatisfactory responses. As a result, MahaRERA has sent notices to these promoters via email, requiring them to update the necessary clarifications and information within 15 days of receiving the notice.
The regulator has emphasized that it will take serious action against promoters who show apathy towards their customers by not responding to the notices. MahaRERA has highlighted that the risk, cost, and consequences of this action will be the responsibility of the concerned promoter. All developers were given 30 days to address the information deficiency, but only 3,500 promoters of residential projects have responded to the earlier notices. After scrutiny, it was observed that 16,000 promoters have not given the expected response, or it was not satisfactory.
According to section 11 of RERA Act, 2016, once a project is registered with the regulator, certain information provided by the project's promoter at the time of registration needs to be updated every three months and financial details once a year. This requirement ensures that homebuyers receive reliable information and updates about the specific housing project, its progress, and cost, among other details. However, it was pointed out that most projects had not updated this information since registration. To protect the interests of homebuyers, MahaRERA has fully operationalized a micro control system that does not exist in any other state in the country.
In addition, MahaRERA has issued show cause notices to 261 projects that have completed less than 40% construction, with possession of these projects scheduled by December. This includes 120 projects in Mumbai, 67 in Pune, 43 in Thane, 15 in Raigad, 6 in Palghar, 3 in Nagpur, 2 in Nashik, and 1 each in Satara, Kolhapur, Amravati, and Aurangabad areas. The regulator has issued these notices seeking information about how these developers will complete the projects in just nine months from now, as around 60% of the work is pending.
MahaRERA’ s actions will bring more transparency to the real estate sector in Maharashtra and ensure that developers and promoters are held accountable for their actions. This will provide homebuyers with reliable information about their prospective homes and ensure that projects are completed within the stipulated time frame. Overall, MahaRERA’ s efforts will help create a more reliable and trustworthy real estate market in Maharashtra.
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