The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken action against developers of 8,212 housing projects for not submitting the required quarterly progress reports (QPRs) by the specified deadline, thereby enhancing oversight of compliance within the state’s real estate sector.
This action encompasses 4,644 projects located in the Mumbai Metropolitan Region, including 1,465 in Thane and 1,263 in Mumbai Suburban. Among the total of 33,029 registered housing projects throughout Maharashtra, these developers failed to update their disclosures for the January-March quarter on MahaRERA’s portal by the April 20 deadline, as mandated by the Real Estate (Regulation and Development) Act, 2016. In response to this oversight, the regulator has issued show-cause notices to all non-compliant entities under Section 7 of the Act.
Developers have been allotted a period of 60 days to respond and rectify the outstanding filings. Non-compliance may lead to severe regulatory measures, including the suspension or cancellation of project registrations, freezing of project bank accounts, and limitations on advertising and marketing activities.
Authorities may also instruct the Joint District Registrar to cease the registration of sale and purchase transactions for these projects. “If any developer fails to update the quarterly progress report for their project despite multiple reminders, MahaRERA will not hesitate to cancel or suspend the registration of such projects. MahaRERA believes that such an undesirable situation should be entirely avoided,” stated Manoj Saunik, Chairman of MahaRERA. QPRs serve as a vital disclosure tool under RERA, designed to promote transparency for both potential buyers and current homeowners.
Through Forms 1, 2, and 3, developers must provide comprehensive updates on construction progress, the number of units and garages registered, funds received, expenditures incurred, and any modifications to approved building plans. These submissions must be certified by the project’s engineer, architect, and chartered accountant.
The compliance framework stipulates that 70% of the funds obtained from homebuyers must be placed in a designated project bank account, with any withdrawals being contingent upon verified construction progress. Even in instances where no withdrawals occur within a quarter, developers are obligated to report fund inflows and provide a self-certified statement on the MahaRERA portal. Regionally, Pune has the highest number of defaulting projects, totaling 1,957.
The Mumbai Metropolitan Region (MMR), which encompasses the Konkan belt, has 4,644 such projects. Other regions include 451 projects in Nashik (Khandesh), 391 in Nagpur (Vidarbha), and 185 in Chhatrapati Sambhaji Nagar (Marathwada). In addition to these stipulations under the RERA Act, MahaRERA’s 2022 directive emphasizes the necessity for timely quarterly and annual disclosures in a specified format. These disclosures must include updates on project status, approvals, inventory sold, and financial progress, all of which are deemed essential for protecting the interests of homebuyers.
Notwithstanding these clearly articulated compliance obligations, more than 8,000 projects did not fulfill the most recent reporting deadline, leading to regulatory action. MahaRERA indicated that this response demonstrates the authority’s strict stance against non-compliance and its commitment to promoting transparency and accountability within the sector.
