MahaRERA Cracks Down on Non-Compliant Housing Projects: Registration Suspended for Neglecting Quarterly Updates

Mumbai, 20th November 2023: In a stringent move by the Maharashtra Real Estate Regulatory Authority (MahaRERA), registrations of 248 housing projects from February and 224 from March have been suspended for failure to provide timely quarterly updates. The regulatory authority has taken decisive action to ensure compliance with the Real Estate Act, emphasizing the importance of transparency and accountability in the real estate sector.

Under the provisions of the Immovable Property Act, developers are mandated to submit quarterly information, including details on flats and garages registered, financial transactions, expenses, and any alterations to building plans. The updates are crucial for prospective homebuyers to make informed decisions.

Out of the 700 projects registered in February, 237 failed to update their information despite receiving notices, resulting in suspension notices for 485 projects. MahaRERA suspended the registration of 248 projects that continued to neglect the prescribed updates. Similarly, 224 out of 443 projects registered in March faced suspension notices under Section 7 for non-compliance.

MahaRERA’s strict measures include freezing the bank accounts of non-compliant projects, restricting them from activities such as advertising, marketing, and flat sales. Deputy registrars have been instructed not to register any sale transactions or deposits for these projects until compliance is achieved.

The regulatory authority initiated the monitoring of quarterly financial progress reports from January 23, focusing on projects registered in February and March after January. This move aims to enforce legal provisions that ensure customer access to comprehensive project information.

Ajoy Mehta, Chairman of MahaRERA, emphasized the significance of providing customers with reliable and transparent information. He stated, “Completion of quarterly and annual forms is an inherent, essential, and inevitable aspect of regulatory provisions in the real estate sector.”

Despite increased collaboration from developers, MahaRERA remains vigilant against any passivity and indifference, asserting that non-compliance will not be tolerated.