The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to initiate a thorough verification of Occupation Certificates (OCs) for lapsed real estate projects through the respective planning authorities, following complaints about forged land records and fabricated documents being used to fraudulently secure project registrations.
The housing regulator has issued notices to the developers of these expired projects and has thus far received replies from 3,699 project developers asserting that the housing project has been completed. An OC is an official document provided by the local municipal or planning authority, confirming that a building has been constructed in accordance with the approved plans and is suitable for occupancy.
MahaRERA has announced that it is forwarding project information to all relevant authorities, urging them to verify the authenticity of the Occupancy Certificates (OCs) submitted by developers. The authorities are expected to confirm the factual status within a period of 10 days. In case of absence of response within the stipulated period, MahaRERA will consider the issued OCs as legitimate and will classify the projects as completed.
In the letter to the planning authorities across Maharashtra, the regulator has clarified that in case of any discrepancies found at a later stage, the entire risk and cost-related responsibility will rest with the concerned planning authority. The 3,699 projects include 1,819 from the Mumbai Metropolitan Region, 1,223 from the Pune region, 273 from the Nashik region, 132 from the Chhatrapati Sambhajinagar region, 84 from the Amravati region, and 168 from the Nagpur region.
It is important to note that a significant real estate fraud was revealed in the Kalyan-Dombivli area a few years ago, where developers constructed buildings using counterfeit documents to obtain regulatory approvals, leading to the demolition of numerous illegal structures and the displacement of thousands of residents.
According to regulations, registration with MahaRERA is compulsory for all housing projects in the state, and developers are permitted to sell homes only after completing this registration and adhering to the specified conditions.
Throughout the construction phase, developers are required to submit quarterly progress updates and annual audit reports. Upon completion of the project, the Occupancy Certificate (OC) issued by the planning authority must be uploaded to the MahaRERA portal.
Only after MahaRERA approves the OC can the developer access funds from the designated account. Furthermore, the developer is no longer obligated to submit any additional disclosures pertaining to that project. Experts believe that MahaRERA’s initiative will reinforce the regulatory framework and boost industry credibility, significantly impacting both developers and homebuyers.
This will promote greater transparency, deter fraudulent activities, and ensure accountability among developers, while instilling increased confidence in homebuyers regarding the authenticity of their investments. This initiative represents a progressive move towards stricter real estate regulations.
