MahaRERA Takes Action: Over 8,200 Housing Projects Face Penalties for Non-Compliance
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued show-cause notices to 8,212 housing projects across the state for failing to update their Quarterly Progress Reports (QPRs) within the stipulated deadline. This move raises significant concerns over transparency and homebuyer protection in the real estate sector.
According to MahaRERA, Maharashtra currently has 33,029 registered housing projects in various stages of construction. Under the provisions of the Real Estate (Regulation and Development) Act, 2016, developers are required to upload detailed progress reports every quarter, including financial disclosures, construction updates, and any changes to approved plans.
For the January-March quarter, developers were mandated to submit updates by April 20. However, over 8,000 projects failed to comply, prompting regulatory action under Section 7 of the Act.
MahaRERA has given erring developers 60 days to respond and update their QPRs. Failure to comply may lead to severe consequences, including cancellation or suspension of project registration, a penalty of Rs 50,000, and restrictions on advertising, marketing, and sale of flats. Authorities may also freeze project bank accounts and direct registrars to halt property transactions linked to such developments.
QPRs are considered a critical tool for ensuring transparency, enabling both prospective and existing homebuyers to track project progress and financial health.
Out of the 8,212 non-compliant projects, the highest number - 4,644 - are located in the Mumbai Metropolitan Region (MMR) and Konkan belt. The Pune region accounts for 2,311 projects, followed by 511 in Khandesh, 483 in Vidarbha, and 238 in Marathwada.
District-wise data shows Thane (1,465) and Mumbai Suburban (1,263) leading within MMR, while Pune district alone accounts for 1,957 projects. Other notable concentrations include Nashik (451), Nagpur (391), and Chhatrapati Sambhaji Nagar (185).
As per MahaRERA norms, developers must maintain a dedicated project bank account where 70% of homebuyer funds are deposited. Withdrawals are permitted only after certification by an engineer, architect, and chartered accountant through Forms 1, 2, and 3, which must also be uploaded quarterly. Even in cases where no funds are withdrawn, developers are required to self-certify deposits and disclose the same on the MahaRERA portal.
These compliance requirements are clearly outlined at the time of project registration and reiterated in Order No. 33/2022, making timely disclosures both a legal and ethical obligation.
Commenting on the development, Manoj Saunik, a senior official at MahaRERA, emphasised the authority's commitment to safeguarding homebuyers. 'MahaRERA has always strived to ensure that homebuyers are not cheated in any manner. From project inception to completion, all information available to developers must also be accessible to buyers,' he said.
Saunik added that quarterly updates are a cornerstone of regulatory oversight. 'If developers fail to comply despite repeated follow-ups, MahaRERA will not hesitate to cancel or suspend registrations. However, we hope such situations can be avoided through timely compliance,' he noted.
The move underscores MahaRERA's tightening grip on regulatory enforcement as it seeks to enhance accountability and transparency in Maharashtra's real estate sector.
