MahaRERA’s Deadline Looms: 363 Suspended Real Estate Projects Must Rectify Errors To Avoid Cancellation

Mumbai, 6th November 2023: Of the 363 projects suspended by the Maharashtra Real Estate Regulatory Authority (MahaRERA) in September 2023, 222 projects have sought to have their suspension lifted by paying penalties and submitting required forms.

However, upon thorough examination, it has been revealed that only 40 of these projects provided accurate information. The remaining projects have been instructed to resubmit their information, correcting any errors. MahaRERA maintains a clear stance: the suspension on these projects will persist until accurate consumer-empowering information is submitted.

In addition, the registration of 141 projects that have not responded is likely to be canceled after November 10. These projects, registered in January, face potential cancellation as MahaRERA is committed to upholding discipline and is ready to take strict actions, including project registration cancellations, if necessary. These projects must re-submit all documents and obtain MahaRERA registration to restart their projects.

Maharera Chairman Ajoy Mehta emphasized the importance of developers submitting Forms 1 to 3 every three months and Form 5 annually under the Real Estate Act to empower consumers. Notices have been issued to approximately 19,000 projects initially registered since May 17 due to developers’ apathy in this regard. Maharera is closely monitoring projects registered from January 23, implementing a dedicated mechanism to track financial progress reports and ensure regulatory compliance. Maharera remains resolute in not tolerating non-fulfillment of regulatory provisions, emphasizing the safeguarding of consumer investments in the housing sector.

The Immovable Property Act of 1952 mandates projects to submit Forms 1, 2, and 3 to MahaRERA, detailing the number of flats and garages registered, funds received, expenses incurred, changes in building plans (if any), and more for each quarter. However, many projects have failed to submit the required forms accurately and adhere to the prescribed format. Moreover, updating these forms on the MahaRERA website is mandatory and has not been completed in several cases.

Bank accounts of suspended projects have been frozen, and various activities such as advertising, marketing, and flat sales have been prohibited. The concerned Deputy Registrar has been instructed not to register any sale transactions or deposits in these projects.

MahaRERA has initiated strict actions against developers who have not complied with regulatory provisions. This legal provision in the Real Estate Act of 2016 ensures that consumers have access to all necessary project information.