Maharashtra: Notice MahaRERA Issues Notices To 563 For Displaying Customer Apathy
Mumbai, 18th July 2023: In January, the Maharashtra Real Estate Regulatory Authority (MahaRERA) had mandated the submission of detailed information regarding the first three months of project registrations, including the number of registrations, funds received, expenses incurred, and other relevant details. These documents, known as Form 1, Form 2, and Form 3, were required to be submitted and updated on the MahaRERA website.
It was essential to keep the customers, who have invested or are planning to invest in these projects, informed about the progress made. Hence, MahaRERA had issued a notice to all these developers, instructing them to update this information within 15 days. Out of the 746 projects registered, 183 developers have complied and updated their quarterly reports on the portal. However, 563 developers have shown indifference towards the customers, which MahaRERA views as a serious concern. To address this issue, a notice has been issued under Section 7 of the Real Estate (Regulation and Development) Act, 2016, to cancel the registration of these projects.
These developers have been given a 45-day deadline to provide the expected response. If they fail to respond within the given time frame, their project registrations may be canceled. In the event of cancellation, all transactions related to the project, such as bank accounts, new registrations, and construction work, may be put on hold.
To expedite the process, MahaRERA has initiated the Financial Quarter Based Project Progress Reporting System, starting from the current quarter. This system ensures that developers adhere to the mandatory reporting of project details as per Rules 3, 4, and 5 of Section 11 of the Real Estate (Regulation and Development) Act, 2016, read along with Order No. 33/2022 dated July 5, 2022. The updated information should include changes in the approved building plan, current status of the project, number of plots and units registered, garages, and the amount spent, among other crucial aspects.
Another important aspect is that developers need to open a separate bank account for each registered project. 70% of the funds received from customers towards project registration should be kept in this account. Certified reports prepared by project architects, structural engineers, and chartered accountants, as mentioned in Form 1, Form 2, and Form 3, should be submitted along with the withdrawal of funds. These reports also need to be sent to MahaRERA. If no funds have been withdrawn during the specified period, it should be declared as “Nil,” and details of the amount deposited in the bank should be self-certified and submitted on the portal.
All these instructions have been clearly communicated to developers during the registration of their projects, as stated in the MahaRERA registration certificates. Despite this, 563 out of 746 developers have failed to update their quarterly reports on the MahaRERA portal, as well as comply with the notice issued under Section 7. Therefore, MahaRERA has taken the necessary action by issuing cancellation notices to these developers.
