The Maharashtra Real Estate Regulatory Authority has taken a big step by stopping the registration process of 1,950 defaulted real estate projects in the entire state. Such action has come after show-cause notices were served to 10,771 defaulting projects on December 2024 for not implementing the mandatory conditions. In the next few days, more than 3,499 projects also stand to meet the same end.
Main Causative Reason for Suspension
This has largely been due to non-submission of Form 4, which marks the project’s completion, wherein an OC has to be provided. An Occupancy Certificate has to be applied for in advance by developers; however, in most of these cases, they failed to submit the required forms or get extensions with the requisite documentation. So, MahaRERA initiated notices.
Reactions from the Developers to New Update from Maharashtra Real Estate Regulatory Authority
Responses to the notice have been filed for 5,324 of the 10,773 projects for which it was issued. Among these:
- 3,517 projects have applied for the receipt of Occupancy Certificates.
- 524 projects are seeking an extension of the deadlines.
- 1,283 projects remain under observation.
MahaRERA has further decided to withhold the registration of 1,950 projects. It will also freeze their bank accounts and bar all related transactions. Further action planned
The regulatory body has launched a process for addressing 3,499 other projects that haven’t responded so far. Most of these lapsed projects are found in the MMR, with others spread across cities like Pune, Nagpur, and Nashik.
Commitment to Transparency
MahaRERA Chairman Manoj Saunik also said that the Real Estate (Regulation and Development) Act 2016 tries to bring out transparency and accountability in the field while safeguarding the interest of homebuyers. Developers are also supposed to report the status of their projects, quarterly and annual, on MahaRERA’s website; however, very few have filed the same so far.
Taking this step will help MahaRERA exercise financial discipline, and safeguard homebuyers from potential risks posed by such incomplete or stalled projects.
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