MahaRERA Takes Action: Temporary Suspension of 1,950 Projects Across Maharashtra
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has temporarily suspended the registration of 1,950 lapsed real estate projects across the state. This action stems from the developers' failure to comply with statutory obligations mandated under the Real Estate (Regulation and Development) Act, 2016 (RERA). In addition, MahaRERA has hinted at similar actions against another 3,499 lapsed projects in the coming days.
The crackdown follows show-cause notices issued in December 2024 to approximately 10,771 projects across Maharashtra. These projects, predominantly located in the Mumbai Metropolitan Region (MMR), were flagged for non-compliance. Developers were granted a 30-day window to address their obligations, which include mandatory disclosures on the MahaRERA website.
The primary concern revolved around developers’ failure to submit Form 4, a critical document that signifies the completion of a project. As per regulations, developers must provide an Occupation Certificate (OC) along with Form 4 upon project completion or seek an extension by submitting the required documents. Despite repeated reminders, over 10,773 projects were declared lapsed due to non-compliance.
MahaRERA’s compliance review revealed a mixed response from developers. Out of the 10,773 projects that received notices, developers of 5,324 projects responded. Among these, 3,517 projects successfully submitted their Occupancy Certificates, while 524 applied for an extension of their project deadlines.
However, not all responses were satisfactory. The replies of 1,283 projects are still under scrutiny, while the remaining 1,950 projects failed to meet compliance standards. As a result, MahaRERA has initiated temporary suspension of their registrations. The authority has also frozen the bank accounts of these projects, imposing restrictions on related transactions.
Furthermore, MahaRERA has confirmed that an additional 3,499 housing projects, which failed to respond to the notices, are likely to face similar actions. This step underscores MahaRERA’s commitment to enforcing accountability and transparency in the real estate sector.
The suspended projects are spread across various cities in Maharashtra, with the majority concentrated in the Mumbai Metropolitan Region. Other affected cities include Pune, Nagpur, Nashik, and several others. This broad geographic reach highlights the widespread nature of non-compliance in the real estate sector.
Manoj Saunik, Chairman of MahaRERA, highlighted the critical role of the Real Estate (Regulation and Development) Act, 2016, in promoting transparency, accountability, and financial discipline within the real estate sector. He stressed that the Act aims to safeguard homebuyers by requiring developers to provide regular updates on project progress, both quarterly and annually, ensuring buyers stay well-informed throughout the development process.
However, the reality has been less than ideal. A compliance cell review in January 2023 revealed that only three out of 748 projects had updated the required information on the MahaRERA website. Despite follow-ups and warnings, the flow of information remained limited until recent enforcement actions.
MahaRERA’s recent actions reflect its determination to uphold the interests of homebuyers. By suspending non-compliant projects, the regulatory body aims to instill a culture of accountability among developers. The freezing of bank accounts and the imposition of transaction restrictions serve as additional deterrents to ensure compliance.
Mr. Manoj Saunik noted that while some developers have responded positively to the show-cause notices by submitting the necessary documents, a substantial number of projects remain non-compliant. He also emphasized that MahaRERA is implementing strict measures to safeguard homebuyers and rebuild trust in the real estate sector.
Image source- maharera
