MahaRERA suspends 388 realty projects’ registration for not providing quarterly updates, ET RealEstate
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has suspended the registration of over three 388 projects of real estate developers for not complying with the mandatory update of information related to their projects on quarterly basis.
This information is required to be updated as per the Real Estate (Regulation & Development) Act, 2016. The regulation states that realty developers must register their projects with MahaRERA and update the information related to the same on a quarterly basis.
This information includes details such as the number of apartments sold and registered during the quarter, the amount of money received, expenditure incurred, and any changes made to the building plan.
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.
In January, the regulator had issued notices to 746 developers asking them to update information with regards to their projects. However, only three developers updated their information initially.
The regulator, as a follow up, sent further notices to which around 358 developers responded. However, the remaining 388 project developers did not respond to these notices and failed to comply with the regulatory requirement.
MahaRERA has now taken a decision to suspend the registration of these 388 project developers who did not respond to the notices. This essentially means the developers will not be able to advertise, market or sell their apartments in these projects. The bank accounts of these projects will also be frozen.
Of the total 388 projects, 127 are from Mumbai Metropolitan Region (MMR), 120 from western Maharashtra, 57 each from north Maharashtra and Vidarbha, 16 from Marathwada, and 11 projects in Konkan region.
The regulator has taken this strict action to ensure that real estate developers comply with the law and homebuyers get access to regularly updated information about the projects they have invested in.
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.