Massive Real Estate Scam Uncovered: 900 Property Documents Found Violating Laws
A massive real estate scam has been uncovered in Pune, Mumbai, and Thane districts, with 900-plus property documents found violating MahaRERA and Fragmentation Act.
Real EstatePropertyMahareraFragmentation ActReraReal Estate MumbaiJun 13, 2024
According to a senior revenue official, a special three-member squad formed by the state registration department scanned around 50,000 property documents in these three districts and found violations of MahaRERA Act in 200 cases, while 700 documents defied fragmentation rules. Another 25 documents flouted other acts, and 600 are under the scanner for undervaluation, potentially causing a revenue loss of Rs 100-200 crore.
The Inspector General of Registration and Controller of Stamps (IGR) had demanded scrutiny of all registrations between 2020 and 2022 to curb malpractices in property registrations across the state. Committees have been set up to scrutinize property papers at all 550 offices across the state to rule out violations of the Real Estate (Regulation and Development) Act (RERA), 2016, and the Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act, 1947.
RERA registration is mandatory for every realtor building residential or commercial projects above 500 sqm or having more than eight flats across phases. The Fragmentation Act prohibits registration of fragmented or small land parcels, with the Maharashtra IGR allowing only properties of size 11 gunthas (11,000 sq ft) or more.
The state department registers 25-30 lakh documents annually, and all documents registered in the last three years will undergo vetting and a detailed report will be submitted to the government. The committee's scrutiny in some offices was just the start — the entire exercise now needs to be replicated across all offices.
Moreover, the Lok Sabha polls had delayed the process with staff roped in for election duty. There are demands for a dedicated cell to conduct such inspections given the humongous number of documents.
A total of 82 officials from the state registration department are already under the scanner for illegally registering documents in violation of RERA and fragmentation norms, with 44 of them from Pune district.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established under the Real Estate (Regulation and Development) Act (RERA), 2016. The Maharashtra Prevention of Fragmentation and Consolidation of Holdings Act, 1947, aims to prevent the fragmentation of land holdings and promote consolidation of land parcels.
The Inspector General of Registration and Controller of Stamps (IGR) is a department responsible for the registration of property documents in the state of Maharashtra.
Frequently Asked Questions
What is MahaRERA?
MahaRERA is a regulatory body established under the Real Estate (Regulation and Development) Act (RERA), 2016, to regulate the real estate sector in Maharashtra.
What is the Fragmentation Act?
The Fragmentation Act, 1947, aims to prevent the fragmentation of land holdings and promote consolidation of land parcels in Maharashtra.
How many property documents were found violating MahaRERA and Fragmentation Act?
Over 900 property documents were found violating MahaRERA and Fragmentation Act in Pune, Mumbai, and Thane districts.
What is the potential revenue loss due to undervaluation of properties?
The potential revenue loss due to undervaluation of properties is estimated to be Rs 100-200 crore.
How many officials are under the scanner for illegally registering documents?
A total of 82 officials from the state registration department are under the scanner for illegally registering documents in violation of RERA and fragmentation norms.
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