The Maharashtra Real Estate Regulatory Authority (MahaRERA) has expressed serious concerns over 212 housing projects launched between January and April 2023 in the state. These projects have failed to provide any construction updates, breaching the regulations set by MahaRERA.
Risk to Homebuyers MahaRERA has cautioned homebuyers about the lack of information regarding these housing projects. After registering with MahaRERA, developers are required to submit a Quarterly Progress Report (QPR) on the regulator’s website. However, these developers have neglected their responsibilities towards homebuyers, which poses a significant risk. To inform prospective buyers, MahaRERA has published a district-wise list of the projects on its website. Pune city tops the list with 47 such projects, followed by Nashik and Palghar with 23 projects each. Thane, Raigad, Sambhaji Nagar, and Nagpur also have a significant number of projects without updates.
Regions Affected The Mumbai Metropolitan Region (MMR) and Konkan region have the highest number of projects without construction updates, with 76 projects in total. Pune follows closely with 64 projects, while North Maharashtra, Vidarbha, and Marathwada regions also show significant numbers of non-compliant projects. Inadequate Compliance As per regulations, developers must submit prescribed statement forms quarterly and annually to MahaRERA, updating them on the website. This process helps monitor construction progress and related aspects, ensuring transparency and accountability. However, out of the 2,369 projects registered with MahaRERA between January and April 2023, 886 have not submitted Quarterly Progress Reports. This has led to MahaRERA issuing notices under the Real Estate Regulation and Development Act, 2016. Developers have been given a 30-day window to rectify their non-compliance. If no action is taken, the regulator can suspend the projects, freeze their bank accounts, and prohibit all transactions. MahaRERA has also sent reminders and imposed penalties on 672 projects. Shockingly, 244 of them failed to update their Quarterly Progress Reports despite paying penalties. MahaRERA is actively engaged in getting these projects to update their statuses.
The Developers’ Non-Responsive Attitude The total of 212 projects that have failed to respond to MahaRERA’s communications spans across the months, with 60 projects being registered in January 2023, 58 in February 2023, 40 in March 2023, and 56 in April 2023. It is crucial for developers to understand the importance of complying with regulations and updating their project statuses promptly. Homebuyers need accurate and up-to-date information to make informed decisions about their investments and financial commitments. MahaRERA’s efforts to bring attention to non-compliant projects will ensure transparency and accountability in the real estate sector.
In Conclusion MahaRERA’s concerns surrounding the 212 housing projects launched between January and April 2023 indicate the lapses in regulatory compliance by developers. These projects have failed to provide construction updates, thereby raising significant risks for homebuyers. By publishing a list of non-compliant projects, MahaRERA aims to caution prospective buyers and protect their interests. It is crucial for developers to understand the importance of adhering to regulatory requirements to ensure transparency and accountability in the real estate industry.
