Pune Leads in Non-Compliant Housing Projects: MahaRERA Takes Action
Pune district has the highest number of non-compliant housing projects in Maharashtra, with close to 500 projects facing stringent action from the Maharashtra Real Estate Regulatory Authority (MahaRERA).
PuneMahareraNoncompliant Housing ProjectsReal Estate RegulationsMaharashtraReal Estate MaharashtraJan 09, 2025
MahaRERA has announced that it is preparing to suspend the registrations of 1,905 projects across the state, taking stringent measures to ensure financial discipline and transparency in the real estate sector.
Several major developers such as Kalyani Developers and Shree Datta Developers have been among those facing action for non-compliance.
Pune is followed by Raigad with 240 projects and Thane with 204.
Mumbai Suburban and Mumbai City have 111 and 51 projects, respectively, that are non-compliant.
MahaRERA is set to take action against 3,499 projects that failed to comply with the showcause notices issued last month.
The authority had served notices to the developers of 10,773 lapsed housing projects, asking them to update their status within 30 days.
Out of these, 5,324 provided the required responses, including 3,517 projects that submitted their Occupancy Certificates (OCs) and 524 that sought deadline extensions.
Initially, 1,950 projects were identified for suspension, but MahaRERA withdrew action against 45 projects after developers submitted the required documents, such as Form 4, applied for deadline extensions, or completed registration formalities.
As a result, registrations for the remaining 1,905 projects have been suspended.
The developers’ bank accounts for these projects have been frozen, and property transactions have been restricted to protect home buyers’ interests.
MahaRERA mandates that developers update their project status on its website by submitting Quarterly Progress Reports (QPRs) and annual updates within the prescribed time frame.
They must also declare a proposed completion date at the time of registration and adhere to it or apply for extensions.
Failure to comply can result in severe consequences, including registration suspension, penalties, and transactional restrictions.
MahaRERA Chairman Manoj Saunik emphasized the importance of the Real Estate (Regulation and Development) Act, 2016, for transparency and accountability in the real estate sector.
He stated, 'For this purpose, every housing project is required to update the project’s status on MahaRERA’s website periodically – quarterly and annually.
This keeps homebuyers informed about the project.
However, in practice, it has been happening to a limited extent.
In January 2023, 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.
This is evident from the responses received to the showcause notices of lapsed projects.'
MahaRERA’s actions are aimed at ensuring that developers adhere to the regulations and maintain transparency, thereby protecting the interests of home buyers.
Frequently Asked Questions
Why is MahaRERA taking action against non-compliant housing projects in Pune?
MahaRERA is taking action to ensure financial discipline and transparency in the real estate sector, protecting the interests of home buyers by imposing penalties, freezing bank accounts, and restricting property transactions for non-compliant projects.
How many non-compliant projects are there in Pune?
There are close to 500 non-compliant housing projects in Pune, the highest number in the state of Maharashtra.
What are the consequences for developers who fail to comply with MahaRERA norms?
Consequences for non-compliance include registration suspension, penalties, and restrictions on property transactions, as well as the freezing of bank accounts.
What is the Real Estate (Regulation and Development) Act, 2016, and why is it important?
The Real Estate (Regulation and Development) Act, 2016, is crucial for ensuring transparency and accountability in the real estate sector, safeguarding the interests of home buyers by mandating regular updates and adherence to project timelines.
What actions has MahaRERA taken so far against non-compliant projects?
MahaRERA has taken actions such as issuing showcause notices, imposing penalties, freezing bank accounts, and restricting property transactions. It has also suspended the registrations of 1,905 projects across the state.
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