MahaRERA Cracks Down On 584 Builders For Not Updating Required Information
Mumbai, 8th May 2023: Out of 746 new housing projects registered with Maharashtra Real Estate Regulatory Authority (MahaRERA) in January, 584 have been issued show cause notices for not updating their quarterly financial progress reports. These projects are worth approximately Rs 22,449 crores and contain a total of 50,288 flats.
The Real Estate Act mandates that developers must register and update Forms 1, 2, and 3 every three months on the website, detailing how much registration money has been received, how much has been spent, and other important customer-related matters. This information is critical for customers who have invested or plan to invest in these projects.
MahaRERA has taken a clear stance that all forms must be updated without delay from the first quarter. The organization has stated that carelessness and delay in this regard will not be tolerated. MahaRERA is monitoring the quarterly financial progress reports of the projects, which is the Financial Quarter-Based Project Progress Reporting System, from the first quarter. The organization has issued show cause notices to all 584 developers who have failed to update their quarterly financial progress reports. These developers have been given 15 days to update the form, and action will be taken against those who fail to respond as expected.
The Real Estate Act mandates that every developer must update the prescribed statement forms on the website on a quarterly or annual basis, including important customer-related matters such as changes in the approved building plan, the current status of the project, how many plots, flats, and garages have been registered for the project, and how much money has been received. Furthermore, as per MahaRERA registration number, a separate account must be opened in a nationalized bank for the concerned project, and 70% of the money coming from customers under registration must be kept in this account.
Forms 1, 2, and 3, certified by the Project Engineer, Architect, and Chartered Accountant for the respective project work, must be submitted at the time of withdrawal of the amount of work done and the amount of expenditure expected to be incurred. If the money has not been withdrawn, it is necessary to self-certify the details of how much money has been paid into the bank during this period and provide such certification on the website.
All these aspects are explained to developers while registering their project with MahaRERA, and it is also clearly mentioned in the MahaRERA Project Registration Certificate issued to them. Despite this, 584 out of 746 developers have failed to update their quarterly financial progress reports on the website. Out of these 162 developers who have submitted the forms, scrutiny is currently underway.
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