MahaRERA Takes Action Against 8,212 Non-Compliant Real Estate Projects

MahaRERA, the Maharashtra Real Estate Regulatory Authority, has issued show-cause notices to 8,212 housing projects for failing to update their Quarterly Progress Reports (QPRs). If real estate developers do not respond within 60 days, project registrations may be cancelled or kept in abeyance, along with a penalty of ₹50,000. The authority may also impose restrictions on advertising, marketing, and the sale of flats, and freeze bank accounts.

Of the total projects, 4,644 are from the Konkan and Mumbai Metropolitan Region, 2,311 from Pune, 511 from Khandesh, 483 from Vidarbha, and 238 from Marathwada, MahaRERA said in a statement. A total of 33,029 housing projects are currently at various stages of construction across Maharashtra.

Under the Real Estate (Regulation and Development) Act, 2016, developers are required to register their projects and upload Forms 1, 2, and 3 on the MahaRERA website every quarter. These forms detail the number of flats and garages registered, funds received, expenditure incurred, and any amendments to the project’s construction plan. As per regulations, progress reports for the January–March quarter were to be updated by April 20. However, 8,212 of the 33,029 projects failed to submit their Quarterly Progress Reports (QPRs) within the deadline, prompting MahaRERA to take serious note of the lapse.

In a statement, the authority said QPRs are crucial for both prospective and existing homebuyers, as they provide the latest updates on a project’s status. MahaRERA has issued show-cause notices to all developers who have violated provisions of the RERA Act by failing to submit their Quarterly Progress Reports (QPRs). Erring builders have been given 60 days to respond and update the pending filings. If they fail to comply within this period, the authority may initiate strict action, including cancellation of project registration or keeping it in abeyance, citing indifference towards homebuyers and a breach of their rights.

As part of the action, bank accounts linked to such projects may be frozen, and restrictions could be imposed on advertising and marketing. MahaRERA may also direct the Joint District Registrar to halt registration of sale and purchase transactions in these projects. The violation also attracts a penalty of ₹50,000, it said.

Region-wise, a significant number of non-compliant projects are concentrated in Pune district at 1,957. The Mumbai Metropolitan Region, including Konkan, accounts for 4,644 projects, of which 1,465 are in Thane and 1,263 in Mumbai Suburban. In Khandesh, 451 projects are in Nashik, while Vidarbha has 391 in Nagpur. In Marathwada, 185 such projects are located in Chhatrapati Sambhaji Nagar.

In addition to Sections 3, 4, 5, and 11 of the RERA Act, Order No. 33/2022 dated July 5, 2022 (Categories 1–4) also mandates developers to update project details on the MahaRERA website in a prescribed format within specified timelines, on both a quarterly and annual basis. These disclosures are crucial for homebuyers, covering key information such as changes in approved building plans, project status, number of plots, flats, and garages registered, and revenue received.

Another key requirement relates to the MahaRERA registration number, under which a dedicated bank account must be maintained for each project. At least 70% of the booking amount collected from homebuyers must be deposited in this account. Withdrawals are permitted only upon submission of Forms 1, 2, and 3, certified by the project’s engineer, architect, and chartered accountant, detailing construction progress and estimated expenditure. These forms must also be submitted to MahaRERA. If no funds are withdrawn in a particular quarter, developers are required to self-certify the amount deposited in the account during that period and upload the certificate on the MahaRERA portal, the statement said.

All these compliance requirements are communicated to developers at the time of project registration and are clearly outlined in the registration certificate. Despite this, 8,212 out of 33,029 projects have failed to update their QPRs on the MahaRERA portal, prompting the authority to issue show-cause notices under Section 7 to the defaulting developers. MahaRERA chairman Manoj Saunik said the authority remains committed to protecting homebuyers’ interests and ensuring they are not cheated in any manner. He emphasised that all information available to a developer of the project, from project inception to completion, should also be accessible to homebuyers. To ensure this, MahaRERA closely monitors the real estate sector at multiple levels under existing regulatory provisions.

“MahaRERA is of the view that such an unpleasant situation must not arise at all,” he added.