MahaRERA Issues Show Cause Notices to 10,773 Lapsed Housing Projects, 3,406 from Pune Region
Mumbai, 16th December 2024: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued show cause notices to 10,773 real estate projects across the state that have lapsed. These projects, registered with the regulator since May 2017, failed to update their status or submit necessary information, including occupancy certificates (OC), even after their completion dates had expired.
MahaRERA has raised serious concerns over the developers’ non-compliance with regulatory requirements. Chairman Manoj Saunik stated, “Through the Compliance Cell, as per regulatory provisions, MahaRERA has initiated micro-monitoring of the real estate sector. Each registered project must submit quarterly updates and periodically share the project status on the MahaRERA website. Presently, Maharashtra has 10,773 lapsed projects, leading to significant investments from homebuyers being stuck.”
He further added, “Developers are required to submit an Occupancy Certificate (OC) along with Form 4 or seek a deadline extension. If developers fail to comply within the 30-day window, MahaRERA is left with no option but to suspend or cancel the project’s registration. This also involves imposing restrictions on the sale and purchase of flats and freezing bank accounts associated with these projects. MahaRERA urges developers to avoid such situations.”
Developers whose projects have lapsed must now submit the OC with Form 4 or file for a deadline extension along with supporting documents. Failure to comply may result in severe penalties, including:
Suspension or cancellation of project registration.
Freezing of associated bank accounts.
Restriction on the sale and purchase of flats in these projects.
Directives to Joint District Registrars to halt property registrations related to such projects.
As per Sections 11(1)(b), (c), (d), and (e) of the Real Estate (Regulation and Development) Act, 2016, developers are obligated to update quarterly progress reports of their projects. Additionally, MahaRERA’s Order 33/2022, issued in July 2022, outlines the actions that may be taken against lapsed projects.
When applying for a MahaRERA registration number, developers are required to specify the project’s completion date. Once the deadline approaches, they must submit an OC and Form 4 to certify completion. For incomplete projects, builders must apply for a deadline extension or deregistration.
The 10,773 lapsed projects are concentrated in the following regions:
Mumbai Metropolitan Region (MMR): 5,231 projects
Pune Region: 3,406 projects
Nashik: 815 projects
Nagpur: 548 projects
Sambhajinagar: 511 projects
Amravati: 201 projects
Dadra & Nagar Haveli: 43 projects
Daman & Diu: 18 projects
MahaRERA emphasizes the importance of regular updates and compliance with legal provisions. Developers are required to update project details quarterly and submit annual reports on the MahaRERA website. Saunik reiterated, “MahaRERA’s primary objective is to ensure transparency and safeguard the interests of homebuyers. Developers must adhere to these guidelines to avoid punitive actions and ensure the timely delivery of projects.”
Homebuyers are encouraged to stay informed about the status of their investments and check MahaRERA’s website for project updates. This initiative aims to bring accountability to the real estate sector while ensuring timely project completion.
