Maha RERA Freezes Accounts Of Over 1,950 Stalled Projects
Real Estate

Maha RERA Freezes Accounts Of Over 1,950 Stalled Projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has cracked down on errant real estate developers with stalled or lapsed projects by freezing the bank accounts of over 1,950 such ventures. The decisive move aims to enforce accountability among developers and protect the interests of homebuyers who have been affected by delayed or incomplete projects. By targeting projects that failed to meet their commitments or regulatory requirements, MahaRERA is seeking to ensure compliance with the real estate regulations and provide a robust mechanism for resolving long-pending issues in the sector. The housing regulator had issued show cause notices to the developers of the projects that had failed to keep MahaRERA updated about their project’s status, despite the project completion deadline getting lapsed. These developers were provided with a 30-day window to update their project’s information. “The primary objective of the Real Estate (Regulation and Development) Act, 2016 is to ensure transparency, accountability, and financial discipline in the real estate sector. This is to protect the homebuyers’ interests. For this purpose, every housing project is required to update the project’s status on MahaRERA’s website periodically – quarterly and annually. This keeps the homebuyers to stay informed about the project. However, in practice, it has been happening to a limited extent,” said Manoj Saunik, Chairman, MahaRERA. According to him, In January 2023, a Compliance Cell review revealed only 3 of 748 projects had updated information. After follow-ups, responses to show-cause notices for lapsed projects show significant improvement in compliance and information flow. Of the 10,773 lapsed housing projects that were served with show cause notices, 5,324 have replied with the desired response. Of these, 3,517 projects have submitted their Occupancy Certificates (OC) and 524 have applied for the project’s deadline to be extended. In addition to this, the responses of 1,283 projects are currently under scrutiny. It has taken the action to keep registration of 1,950 projects with MahaRERA in abeyance and in these projects, transaction related restrictions have been put into place. In case of the balance 3,499 housing projects, a process has been initiated to take similar action against them, as they have not responded. “MahaRERA is aware that the number of projects that have not responded is significant and we have initiated action against such projects to protect homebuyer’s interests,” Saunik added. As per regulations, while registering with MahaRERA, developers need to specify the proposed project completion date. Once completed, they are expected to submit Form 4 with the OC or apply for an extension if delayed. Developers facing challenges are required to apply for de-registration. Promoters must also submit quarterly and annual progress reports on MahaRERA's website within specified timelines, along with necessary supporting documents. These measures are required to be taken along with the necessary supporting documents. MahaRERA has decided to take stringent action against non-compliant projects, by cancelling or suspending registrations, imposing penalties, and even instructing Joint District Registrars to halt property registrations for projects failing to comply with the regulations.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has cracked down on errant real estate developers with stalled or lapsed projects by freezing the bank accounts of over 1,950 such ventures. The decisive move aims to enforce accountability among developers and protect the interests of homebuyers who have been affected by delayed or incomplete projects. By targeting projects that failed to meet their commitments or regulatory requirements, MahaRERA is seeking to ensure compliance with the real estate regulations and provide a robust mechanism for resolving long-pending issues in the sector. The housing regulator had issued show cause notices to the developers of the projects that had failed to keep MahaRERA updated about their project’s status, despite the project completion deadline getting lapsed. These developers were provided with a 30-day window to update their project’s information. “The primary objective of the Real Estate (Regulation and Development) Act, 2016 is to ensure transparency, accountability, and financial discipline in the real estate sector. This is to protect the homebuyers’ interests. For this purpose, every housing project is required to update the project’s status on MahaRERA’s website periodically – quarterly and annually. This keeps the homebuyers to stay informed about the project. However, in practice, it has been happening to a limited extent,” said Manoj Saunik, Chairman, MahaRERA. According to him, In January 2023, a Compliance Cell review revealed only 3 of 748 projects had updated information. After follow-ups, responses to show-cause notices for lapsed projects show significant improvement in compliance and information flow. Of the 10,773 lapsed housing projects that were served with show cause notices, 5,324 have replied with the desired response. Of these, 3,517 projects have submitted their Occupancy Certificates (OC) and 524 have applied for the project’s deadline to be extended. In addition to this, the responses of 1,283 projects are currently under scrutiny. It has taken the action to keep registration of 1,950 projects with MahaRERA in abeyance and in these projects, transaction related restrictions have been put into place. In case of the balance 3,499 housing projects, a process has been initiated to take similar action against them, as they have not responded. “MahaRERA is aware that the number of projects that have not responded is significant and we have initiated action against such projects to protect homebuyer’s interests,” Saunik added. As per regulations, while registering with MahaRERA, developers need to specify the proposed project completion date. Once completed, they are expected to submit Form 4 with the OC or apply for an extension if delayed. Developers facing challenges are required to apply for de-registration. Promoters must also submit quarterly and annual progress reports on MahaRERA's website within specified timelines, along with necessary supporting documents. These measures are required to be taken along with the necessary supporting documents. MahaRERA has decided to take stringent action against non-compliant projects, by cancelling or suspending registrations, imposing penalties, and even instructing Joint District Registrars to halt property registrations for projects failing to comply with the regulations.

Next Story
Infrastructure Urban

Lucknow Declared State’s First Zero Dump City

Lucknow has become Uttar Pradesh’s first officially certified “Zero Dump City” after all three processing lines at the Shivri solid waste treatment plant achieved full operation. The facility now handles the city’s entire daily load of roughly 2 100 metric tonnes, and has already removed two thirds of the vast legacy mound that once blighted the site.Shivri began life in 2012 but stalled under two successive contractors, allowing a waste mountain to accumulate. A Chinese operator appointed in 2017 also failed to deliver, incurring penalties of about Rs 400 million.Renewed m..

Next Story
Infrastructure Transport

Heavy Rains Delay Opening of Kusmalli Bridge

The long awaited opening of Kusmalli Bridge on the Belagavi–Goa Road via Chorla has been pushed back by several days because backfilling on the Jamboti side remains unfinished. Continuous downpours across the Jamboti–Kankumbi stretch have made it impossible to place the granular sub base (GSB) material required to complete the approach ramp.National Highways Executive Engineer Rajendra and a team of officials inspected the site on Wednesday. He confirmed that the bridge structure itself is finished, but the protective walls and ramp backfill still need attention. “If the rain eases, we..

Next Story
Infrastructure Transport

New Flyover to Shadow Metro Line 5, Extension to Ambernath

Maharashtra Chief Minister Devendra Fadnavis has announced a flyover that will run alongside the underground Thane–Bhiwandi–Kalyan Metro Line 5, aiming to relieve persistent congestion on this busy corridor. The new structure will be delivered in tandem with an east–west road widening programme, ensuring road capacity keeps pace with the railway upgrade.At the same time, Metro Line 5 is to be extended beyond Kalyan to serve Ulhasnagar and Chikhloli near Ambernath, giving the district’s rapidly expanding communities a faster, more reliable public transport link. Officials sa..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?