The Maharashtra Real Estate Regulatory Authority (MahaRERA) has 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 have either not responded to these notices or have submitted unsatisfactory responses.
The notices have been sent to the emails submitted to the MahaRERA at the time of project registration. These promoters are required to update the required clarifications and information within 15 days of receiving the notice.
The regulator has now stated that it will take serious note of the apathy towards the customers of promoters who do not respond even after these notices and will take further action as per RERA Act. Moreover, MahaRERA has also highlighted in this notice that the risk, cost, and consequences of this action will be the responsibility of the concerned promoter.
All these developers were earlier given 30 days to fix the information deficiency. Around 3,500 promoters of residential projects have responded to the earlier notices and after scrutiny, it was observed that 16,000 promoters have not given the expected response or it was not satisfactory.
As per the section 11 of RERA Act, 2016, once the 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.
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.
However, it was pointed out that most of the projects had not updated this information since registration. Following this, the regulator started this scrutiny of all the projects and their updated information and status.
In a bid to create a built-in discipline in the real estate sector to protect homebuyers’ interest MahaRERA has fully operationalized a micro control system that does not exist in any other state in the country.
Recently, MahaRERA has also issued show cause notices to 261 projects that have completed less than 40% construction, while the possession of these projects is scheduled by December. This includes 120 such projects in Mumbai, 67 in Pune, 43 in Thane, 15 in Raigad, 6 in Palghar, 3 in Nagpur, 2 in Nashik and 1 each in Satara, Kolhapur, Amravati and Aurangabad areas.
The regulator has issued the notices seeking information about how these developers will complete the said projects in just 9 months from now as around 60% of the work is pending.