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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has imposed fines on 12 developers for advertising their projects in newspapers without mentioning their registration numbers. The fines, totalling Rs5.8 lakh, were imposed after MahaRERA issued show cause notices to 54 projects in the state. The regulatory authority officials will now also monitor social media platforms for project advertisements without registration numbers and penalize developers accordingly.
The fines imposed on the 12 developers vary, with the highest fine of Rs1.5 lakh imposed on Roongta Buildcon from Nashik. Interestingly, 11 of the 12 developers had MahaRERA registration numbers but did not mention them in their advertisements. One developer was fined Rs10,000 for publishing an advertisement that mentioned the registration number in a small font. The fine amounts are said to be proportionate to the size and cost of the advertisement issued in the newspapers.
MahaRERA is responsible for regulating the real estate sector in Maharashtra and ensuring that developers comply with the Real Estate Act. As per the Act, any project with a land area of more than 500 square meters or eight flats must be registered with MahaRERA, and the registration number must be mentioned in any advertisement of the project.
In the first phase, MahaRERA heard 15 of the 54 projects and acted against 12 of them. The developers who were fined can appeal against the decision within 60 days from the date of the order.
MahaRERA's move to monitor project advertisements on social media platforms is a welcome step, as many developers advertise their projects on social media without mentioning their registration numbers. This can mislead potential buyers, who may assume that the project is not registered with MahaRERA.
The Real Estate Act was passed in 2016 to bring transparency and accountability to the real estate sector in India. The Act aims to protect the interests of homebuyers by ensuring that developers register their projects with the regulatory authorities and complete them within the specified timelines. The Act also mandates that developers deposit 70% of the funds collected from buyers in an escrow account, which can be used only for the construction of the project.
MahaRERA has been playing an important role in regulating the real estate sector in Maharashtra and has been taking strict action against developers who violate the Real Estate Act. In 2021, MahaRERA ordered developers of six projects to refund the amounts paid by homebuyers with interest, as the developers had failed to complete the projects within the specified timelines.
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