The Maharashtra Real Estate Regulatory Authority (MahaRERA) has initiated scrutiny of all lapsed housing projects and issued show-cause notices to around 11,000 such projects, most of which are in the Mumbai Metropolitan Region.
The notices have been issued to developers who have failed to update their projectโs status and related information with MahaRERA even after the projectโs completion date was initially submitted to the regulator.
MahaRERA has taken serious cognisance of this irregularity and has issued show-cause notices to around 10,773 projects. The regulator said in a statement that these lapsed projects had been registered with it since May 2017.
MahaRERA warned that if there is no response within 30 days, registration of these projects may be suspended or cancelled, along with a restriction on the sale of flats and the freezing of bank accounts.
MMR has the highest number of lapsed projects
Of the 10,777 projects, the Mumbai Metropolitan Region, which includes the surrounding northern Konkan region, has the highest number of lapsed projects at 5,231, followed by thePune region with 3,406, Nashik 815, Nagpur 548, Sambhaji Nagar 511, Amravati 201, Dadra & Nagar Haveli 43 and Daman & Diu 18 projects.
The developers of the lapsed projects are expected to submit an Occupation Certificate (OC) with Form 4 or seek an extension of projects. The application is to be supported with the requisite documents.
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MahaRERA to initiate strict action against erring developers
So far, MahaRERA has initiated action by directly suspending or cancelling the projectโs registration, imposing punitive action, and issuing instructions to the Joint District Registrar directing not to register any purchase and sale of flats in such projects. It said even bank accounts associated with such projects may be frozen.
Section 11(1)(b), (c), (d) and (e) of The Real Estate (Regulation and Development) Act, 2016, makes it mandatory for every project to update quarterly progress reports. MahaRERAโs order issued in July 2022 also states the action that may be initiated regarding lapsed projects.
The builder must submit a deadline extension application if the project remains incomplete. Alternatively, if there are any issues with starting the project, it becomes necessary to apply for de-registration.
Per the regulatory provisions, the MahaRERA has initiated micro-monitoring of the real estate sector at multiple levels through the Compliance Cell. Each project registered with MahaRERA must submit a quarterly report and the projectโs status on the website periodically. Presently, 10,773 real estate projects have lapsed in Maharashtra, leading to several homebuyers getting stuck with the investments, said Manoj Saunik, Chairman of MahaRERA.
โAs per the regulation, it is mandatory for the developers to submit an Occupancy Certificate (OC) along with Form 4 of their respective projects or to seek deadline revision. After the 30-day window provided to the developer has expired and the developer hasnโt initiated any attempt to submit OC with Form 4 or sought a deadline extension, MahaRERA is left with no alternative but to cancel or suspend the projectโs registration. This also means imposing restrictions on the sale and purchase of flats in such projects and freezing the associated bank accounts. MahaRERA urges the real estate industry not to put itself into such a situation,โ he said.
