The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued cancellation notices to over 563 promoters of housing projects in the state not updating information related to their projects.
These are part of a total 746 new housing projects covering 50,288 apartments worth around Rs 22,449 crore that were registered with the regulator in January.
As per the Real Estate (Regulation & Development) Act, 2016, once a project is registered with the regulator, certain information provided by the project’s promoter at the time of registration needs to be updated every 3 months and financial details once in a year.
The project proponent is expected to update details such as number of registrations, money received, expenditure incurred.
A homebuyer is expected to benefit from this with reliable information and updates about the specific housing project, its progress, cost and many such details are easily available through the regulator’s portal.
MahaRERA had issued a 15-day show-cause notice to all these developers in May to update this information.
And of these, 183 developers have updated their quarterly reports on the website. The regulator has taken a serious notice of the apathy shown by the remaining 563 developers towards the homebuyers and a show cause notice has been issued to all of them as to why the registration of their projects should not be cancelled.
The regulator has directed these developers to respond within a period of 45 days and failure to respond within this period may result in cancellation of the project registration.
In case of cancellation of registration, all transactions of the project like bank account, new registration, construction may be suspended.
Prior to this, MahaRERA had issued notices to around 16,000 real estate developers and promoters across the state for not receiving satisfactory responses with regards to information about their projects.
As part of enabling the Close Monitoring System, the regulator has started reviewing the projects registered since its inception in May 2017 till March 2022.
Following this, in January, MahaRERA had issued show cause notices to 19,500 projects that had not updated the mandatory project information as per section 11 of the Real Estate (Regulation & Development) Act, 2016. However, over 16,000 project promoters had either not responded to these notices or have submitted unsatisfactory responses.
From here on, MahaRERA will be keeping a check and scrutinizing the quarterly financial progress reports of these new projects starting from the first quarter of since the registration.
While updating forms for withdrawal of money from designated bank accounts, the developer is required to submit three separate certificates to the scheduled bank and these will also need to be submitted to MahaRERA through the online portal as and when they are submitted to Banks at the time of each withdrawal.
As part of regular updates, the developers are expected to provide other details, as and when they are changed, including changes in encumbrances report and updated information from the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI).
Promoters of the project are also expected to update any changes in project professionals including architect, engineer, chartered accountant, real estate agents, formation of legal entity or society within a period of three months of the majority of allottees having booked their plot or apartment or building.