Maharashtra Cracks Down on Non-Compliant Real Estate Projects

MahaRERA Halts Registration of 1,950 Inactive Projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has adopted a stringent approach towards real estate developers who do not comply with regulations. Recently, the authority has temporarily halted the registration of 1,950 inactive projects throughout Maharashtra. This decision comes after show-cause notices were sent in December 2024 to more than 10,771 projects, mainly situated in the Mumbai Metropolitan Region, due to their failure to fulfill statutory requirements.

Key Points:

Reason for Suspension: The developers failed to submit Form 4, which indicates the completion of the project, and did not secure an Occupation Certificate (OC) or seek an extension.

Compliance Efforts: MahaRERA issued notifications and provided developers with a 30-day period to achieve compliance.

Response and Action: 

Among 10,773 projects, 5,324 provided responses. 

3,517 submitted OCs, while 524 requested extensions for their deadlines. 

1,283 responses are currently under review. 

Registration has been suspended for 1,950 projects, resulting in frozen bank accounts and restrictions on transactions.

Locations Impacted: Projects throughout Maharashtra, including major cities such as Mumbai, Pune, Nagpur, and Nashik.

MahaRERA's Objectives:

To promote transparency and accountability within the real estate sector. 

To safeguard the interests of homebuyers. 

To require regular updates on project statuses to be published on the MahaRERA website.

Chairman's Remarks:

Manoj Saunik, the chairman of MahaRERA, underscored the necessity of providing project updates to empower homebuyers with essential information. He noted a marked enhancement in response rates following initial follow-ups but stressed the need for more stringent measures against projects that fail to comply, in order to protect the interests of homebuyers.

Other News in Real Estate:

Brigade Group plans to invest ₹4500 crore in a mixed-use development in Hyderabad, which will include a World Trade Center, a shopping mall, a hotel, and upscale residential units. 

ICICI Bank has secured a lease for commercial space in Turbhe, Mumbai, at an annual cost of ₹9 crore.