MahaRERA Takes Action: Show Cause Notices Issued to 8,212 Housing Projects for Non-Compliance
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken a significant step to enforce compliance by issuing show cause notices to 8,212 housing projects for failing to update their Quarterly Progress Reports (QPRs) within the prescribed deadline. This action falls under the Real Estate (Regulation and Development) Act, 2016 (RERA), which mandates all housing projects to register with the regulator and submit detailed quarterly disclosures.
The state currently has 33,029 housing projects in various stages of construction. These projects are required to submit forms 1, 2, and 3, which include information on flats and garages booked, funds collected, project expenditure, and any changes made to approved construction plans. The QPRs for the January–March quarter were due by April 20, but a substantial number of developers missed this deadline, prompting MahaRERA to take corrective action.
The regulator has acted under Section 7 of the RERA Act and issued notices to the non-compliant developers. They have been given 60 days to respond and update the required information on the MahaRERA portal. If developers fail to comply within this period, the authority may initiate stricter regulatory actions. These measures include suspension or cancellation of project registration, which would be a serious violation affecting homebuyer rights. Additional penalties under consideration include restrictions on advertising, marketing, and sales of units, along with freezing of project-related bank accounts. A penalty of INR 50,000 may also be imposed for property registration-related violations.
Most non-compliant projects are concentrated in key regions. The Mumbai Metropolitan Region, including Konkan, accounts for 4,644 such projects, including districts like Thane, Mumbai Suburban, Raigad, Palghar, Mumbai City, Ratnagiri, and Sindhudurg. The Pune region has 2,311 projects, with Pune district alone contributing 1,957 cases. Other districts in this region include Satara, Kolhapur, Sangli, and Solapur. In Khandesh, 511 projects have defaulted, while Vidarbha accounts for 483 projects, with a significant share from Nagpur. Marathwada has 238 projects under notice, with Chhatrapati Sambhaji Nagar reporting the highest numbers in the region.
The compliance framework also requires developers to operate a dedicated escrow-like bank account for each project, where 70% of the booking amount must be deposited. Withdrawals are permitted only against certified progress reports from engineers, architects, and chartered accountants through forms 1, 2, and 3 submitted to the authority. Even in cases where no withdrawals are made, developers are required to certify fund movements and upload disclosures quarterly.
These compliance obligations are clearly defined at the time of project registration and are part of the regulatory certificate issued by MahaRERA. Despite repeated reminders and established rules, a significant number of developers have failed to meet the reporting requirements, leading to the current enforcement action. The move is aimed at strengthening transparency and protecting homebuyer interests through timely disclosure of project details.
