Maharashtra’s Regulatory Reforms: A Blueprint for Accountability and Transparency
Maharashtra has become a case study in how streamlined regulations, digitisation, and institutional autonomy can enhance accountability in a rapidly developing state economy. Recent governance measures have focused on increasing transparency, strengthening enforcement, and delivering citizen-centric outcomes, creating a framework that may hold lessons for other regions in India.
Since late 2024, the state administration has initiated a series of measures aimed at reducing wasteful expenditure and improving oversight mechanisms. Notably, large-scale projects such as the ₹3,190 crore mechanised cleaning initiative for government hospitals were halted after audits indicated irregularities in contracting and inflated tender costs. These interventions signal a shift toward tighter fiscal discipline and evidence-based decision-making.
Digitisation has played a key role in this transition. The Maharashtra Real Estate Regulatory Authority (MahaRERA), operational since 2017, has established a fully paperless, online regulatory process. This has expedited dispute resolution, improved procedural clarity, and increased accessibility for buyers, developers, and other stakeholders.
MahaRERA’s operational scale—over 50,000 registered real estate projects, the highest in India—demonstrates the viability of a transparent, rules-based ecosystem. Similarly, the Mumbai Metropolitan Region Development Authority (MMRDA) has used provisions of the MRTP Act to impose stricter penalties on unauthorised constructions, particularly in high-demand zones such as the Bandra-Kurla Complex. Standardised operating procedures have been introduced to support timely and impartial enforcement actions.
The long-delayed Palais Royale project in Worli has emerged as an example of regulatory enforcement in practice. In January 2025, MahaRERA directed the developer, Honest Shelters Pvt. Ltd. (HSPL), to hand over seven apartments to IIFL Finance with occupancy certificates and statutory interest. Following non-compliance, the authority issued a recovery warrant in August 2025 under Section 41 of the RERA Act, alongside penalties under Section 63. The episode highlights a growing willingness by institutions to act decisively, regardless of a developer’s market position or influence.
For homebuyers, these developments reduce the likelihood of bearing the full risk of project delays. Developers face heightened compliance obligations and stricter legal consequences for non-delivery, encouraging greater adherence to timelines and contractual commitments. For the government, the reforms showcase the practical benefits of digitisation, codified procedures, and empowered regulatory bodies.
Maharashtra’s approach underscores that effective governance relies on transparent processes, consistent enforcement, and the insulation of regulatory bodies from external influence. By combining institutional autonomy with digital tools and clear legal frameworks, the state has demonstrated that development and accountability can advance in parallel.
The key insight is that well-functioning regulatory systems not only deter malpractice but also foster market confidence—an outcome that can be adapted to other jurisdictions irrespective of political context.
