MahaRERA Receives Positive Response to 10,773 Notices on Lapsed Housing Projects
Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has seen a positive response to the show cause notices issued to developers of lapsed housing projects. Out of the 10,773 projects, 5,324 have responded, showing a significant improvement
MahareraReal EstateHousing ProjectsComplianceTransparencyReal Estate NewsJan 09, 2025
Out of the 10,773 projects that received show cause notices, 5,324 have replied with the required information.
The regulator had issued these notices to developers who had failed to update MahaRERA about their project’s status, despite the completion deadlines lapsing.
Developers were given a 30-day window to update their project information.
This move is aimed at ensuring transparency and accountability in the real estate sector, protecting the interests of homebuyers.
Builders of 5,324 housing projects have responded to the show cause notices, a very encouraging sign.
Of these, 3,517 projects have submitted their Occupancy Certificates, and 524 have applied for an extension of their project deadlines.
Currently, the responses from 1,283 projects are under scrutiny.
MahaRERA has already initiated action against 1,950 projects by suspending their registration and freezing their bank accounts, putting transactional restrictions in place.
For the remaining 3,499 projects, similar actions will be taken if they do not respond.
MahaRERA Chairman, Manoj Saunik, emphasized the importance of the Real Estate (Regulation and Development) Act, 2016.
The Act aims to ensure transparency, accountability, and financial discipline in the real estate sector, protecting homebuyers’ interests.
Every housing project is required to update its status on MahaRERA’s website periodically—quarterly and annually.
However, in practice, this has been happening to a limited extent.
In January 2023, the Compliance Cell found that only 3 out of 748 projects had updated the required information.
After a series of follow-ups, there has been a significant improvement in the flow of information, as evident from the responses to the show cause notices of lapsed projects.
When registering a project with MahaRERA, developers must clearly mention the proposed completion date.
If a project is completed on time, the developer must submit Form 4 along with the Occupancy Certificate.
If not, the developer must apply for an extension of the deadline.
In cases of challenges, developers are required to apply for project de-registration.
Additionally, each project’s promoter must submit Quarterly Progress Reports (QPR) and annual progress reports on MahaRERA’s website within the specified time frame.
MahaRERA has decided to take strict action against projects that do not comply with the Act’s requirements.
This includes canceling or suspending project registrations, levying penalties, and instructing Joint District Registrars not to register the sale or purchase of any flats in such projects.
Bank accounts of defaulting projects have also been frozen.
This proactive approach by MahaRERA is crucial in maintaining the integrity and trust in the real estate market.
It ensures that homebuyers are well-informed and protected, fostering a more transparent and accountable real estate sector.
Frequently Asked Questions
What is MahaRERA?
MahaRERA stands for the Maharashtra Real Estate Regulatory Authority. It is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to ensure transparency, accountability, and financial discipline in the real estate sector.
Why did MahaRERA issue show cause notices?
MahaRERA issued show cause notices to developers of lapsed housing projects who failed to update the project status despite the completion deadlines lapsing. This is to ensure compliance with the Real Estate (Regulation and Development) Act, 2016.
What is the Real Estate (Regulation and Development) Act, 2016?
The Real Estate (Regulation and Development) Act, 2016, is a law in India aimed at protecting homebuyers, ensuring transparency, accountability, and financial discipline in the real estate sector. It mandates regular updates on project status and compliance with deadlines.
What happens if a developer does not comply with MahaRERA's requirements?
If a developer does not comply with MahaRERA's requirements, the regulatory authority can take strict action, including canceling or suspending project registrations, levying penalties, and freezing bank accounts. This ensures that non-compliant projects do not continue to operate.
How often do developers need to update project status on MahaRERA's website?
Developers are required to update the project status on MahaRERA's website periodically—quarterly and annually. This helps in keeping homebuyers informed about the progress and status of their housing projects.
Related News Articles
Current Gold Prices in Major Indian Cities: Latest Rates and Updates
Stay updated with the latest gold prices for 10 grams of 22-carat gold in major Indian cities across India.
Equinox India Developments Limited: The New Face of Indiabulls Real Estate
Listed real estate developer Indiabulls Real Estate Limited has undergone a transformation, changing its name to Equinox India Developments Limited with effect from June 20, 2024.
Real Estate Entrepreneur Kamlesh Kumar Jailed in Ranchi Amid Money Laundering Probe
The Enforcement Directorate (ED) has arrested Real Estate businessman Kamlesh Kumar in Ranchi under the Prevention of Money Laundering Act (PMLA).
Navneet Rana to Skip Maharashtra Assembly Polls, Eyes Rajya Sabha Seat
Navneet Rana, a prominent political figure in Maharashtra, has announced that he will not contest in the upcoming Maharashtra Assembly elections. Instead, he is setting his sights on a membership in the Rajya Sabha. This decision comes after a series of s
Micromitti to Launch SM-REITs: A New Era for Real Estate Investment in Central India
Micromitti, a leading PropTech firm in Central India, is set to introduce Real Estate Investment Trusts (REITs), AIF Category 2 Real Estate Funds, and Private Equity (PE) investments, providing high-return opportunities for individual investors.
Bhopal Sees Property Rates Soar by Up to 200% in 243 Locations
Property rates in Bhopal have increased by up to 200% in 243 locations, including prime areas like Arera Colony, 10 Number Market, and MP Nagar, sparking opposition from builders and developers.