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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued show cause notices to 10,773 lapsed housing projects since their registration began in May 2017. Developers must submit an Occupancy Certificate (OC)with Form 4 or request a deadline extension with proper documentation within 30 days to avoid penalties. Failure to comply may lead to project registration suspension, restricted flat sales, and frozen bank accounts. The Mumbai Metropolitan Region recorded the most lapsed projects (5,231), followed by Pune (3,406) and others across Maharashtra.These stringent measures aim to safeguard homebuyers' investments, enforce transparency, and ensure accountability in Maharashtra's real estate sector.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recently issued show cause notices to approximately 10,773 housing projects that have lapsed since their registration in May 2017. These notices were aimed at developers who failed to update the status of their projects despite missing their originally scheduled completion dates. MahaRERA is taking this irregularity seriously and is requiring developers to submit an Occupancy Certificate (OC) along with Form 4 or request an extension of the project deadline, with the necessary documentation. Advertisement
Should developers fail to respond within the next 30 days, MahaRERA may suspend or cancel the registration of these projects, impose restrictions on the sale of flats, and even freeze the associated bank accounts. The lapsed projects are distributed across various regions, with the Mumbai Metropolitan Region accounting for the highest number at 5,231, followed by Pune with 3,406, and additional projects in Nashik, Nagpur, Sambhaji Nagar, Amravati, Dadra & Nagar Haveli, and Daman & Diu.
According to Sections 11(1)(b), (c), (d), and (e) of The Real Estate (Regulation and Development) Act, 2016, developers are required to submit quarterly progress reports for every project. Furthermore, MahaRERA's order 33/2022 details the actions that may be taken regarding lapsed projects.
When seeking MahaRERA registration, developers must clearly indicate the scheduled completion date of their projects. In cases where projects remain incomplete, builders are expected to apply for a deadline extension or, if there are issues preventing the project from starting, to request de-registration. Compliance with these regulations is critical, as developers must provide quarterly updates and annual reports on their projects.
MahaRERA Chairman Manoj Saunik indicated that the Compliance Cell has started detailed monitoring of the real estate sector, insisting that each registered project must submit a quarterly report along with its status on the website regularly. He expressed concern regarding the 10,773 lapsed projects in Maharashtra, which have left many homebuyers' investments in jeopardy. Saunik stressed that failure to comply with the requirement to submit an Occupancy Certificate (OC) with Form 4 or seek a deadline revision could force MahaRERA into a position where it must cancel or suspend project registrations, thereby restricting sales and freezing bank accounts linked to these projects. He urged the real estate industry to avoid such situations by adhering to regulatory obligations.
MahaRERA's proactive measures aim to address the concerning number of lapsed projects and safeguard homebuyers' investments. By enforcing compliance with the Real Estate (Regulation and Development) Act, the authority seeks to ensure that developers adhere to their commitments. The mandate for regular updates and documentation submission explicitly highlights the need for accountability in the real estate sector. MahaRERA's stringent actions will encourage developers to maintain transparency, ultimately fostering a more reliable housing market in Maharashtra.
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