The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken a strong stance against unregistered housing projects across the state. In a recent enforcement drive, MahaRERA penalized 628 projects for failing to display their mandatory RERA registration number and QR code in advertising materials.

This move highlights MahaRERA's commitment to protecting homebuyer interests and ensuring transparency in the real estate sector. A RERA registration number signifies that a project complies with regulations and provides crucial consumer safeguards. The QR code, introduced in August 1, 2023, grants homebuyers easy access to vital project details with a simple scan.

A total penalty of INR 88.90 lakh (INR 8,890,000) was imposed on the 628 violating projects. Of this amount, INR 72.35 lakh (INR 7,235,000) has already been recovered. The Mumbai region saw the highest number of violations (312 projects) with penalties totaling INR 54.25 lakh (INR 5,425,000). Pune followed with 250 projects penalized for INR 28.30 lakh (INR 2,830,000) and Nagpur with 66 projects facing penalties of INR 6.35 lakh (INR 635,000).

To keep one's investment secured, MahaRERA appeals to homebuyers not to engage in transactions with housing projects without the mandatory RERA registration number. For effective implementation of guidelines and to identify violators, MahaRERA takes assistance from the Advertising Standards Council of India (ASCI). Advertisements are no more limited to the traditional medium. It is crucial to keep a check on the new-age formats as well. The collaboration with ASCI aims at expanding the horizons and identifying such violators in the new-age media as well as it is backed by artificial intelligence. Thus far, the collaboration has helped in zeroing in on the violators in newspapers, websites, online video streaming channels and social media. Surprisingly, what has come to light is that the rate of violation is significantly higher on social media as compared to the traditional formats of advertisements.

As per the Real Estate (Regulation and Development) Act, it is binding for any project in Maharashtra that exceeds 500 square meters or involves more than eight apartments (including plots) to be registered with MahaRERA. No marketing activities or sales in such housing projects are permitted without securing registration number from the MahaRERA. Moreover, starting August 1, 2023, it has become mandatory for the developers to provide detailed information pertaining to the project such as project's name, developer's name, renewal of project's registration, expected date of completion, registration status, pending complaints, pending litigations, any recovery warrants issued, among others. A simple scan of the project's QR code should disclose all this information related to the project. Despite making it mandatory to print Registration number and QR code in all publicity materials, it was observed that some developers continue to have disregard for the guideline. Hence, MahaRERA initiated suo motu action against such violators and also served them show cause notices.

With the intent of ensuring homebuyers' investments remain secured in real estate and prevent any financial loss, the government implemented the Real Estate (Regulation and Development) Act, 2016 and established MahaRERA for effective management for the sector. MahaRERA is vigilant about fundamental issues in the sector and it is also essential for the homebuyers to be alert and law abiding. MahaRERA urges flat purchasers to invest in only those projects that are regulator approved.

MahaRERA Chairman Mr. Ajoy Mehta said that, "Promoters of housing projects are not permitted to advertise their projects without a MahaRERA registration number. Starting August 1, 2023, it is also mandatory to display QR code with every advertisement. This enables homebuyers to access project related important information. Despite this, some developers are violating these guidelines. Therefore, MahaRERA is always on the lookout for such advertisements and regularly initiates action against the violators. Having MahaRERA registration number is synonymous to secure investment in real estate as it instills a sense of trust among flat purchasers. Post QR code success in Maharashtra, housing regulatory authorities in other states have also made it mandatory. MahaRERA's commitment to maintain the trust continues and will not tolerate marketing content without a registration number as well as QR code. MahaRERA will continue taking punitive action against the violators. 

By taking a firm stance against unregistered projects, MahaRERA empowers homebuyers to make informed decisions and safeguard their investments in the real estate market.