In a decisive move to uphold transparency and accountability in the real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has suspended the registrations of 248 housing projects from February and 224 from March. This stringent action comes as a response to the failure of these projects to provide timely quarterly updates, a crucial requirement under the Real Estate Act.
Ensuring Compliance: MahaRERA’s Regulatory Measures
Under the Immovable Property Act, developers are obligated to submit quarterly information, encompassing details on registered flats and garages, financial transactions, expenses, and any alterations to building plans. These updates serve as vital information for potential homebuyers, enabling them to make informed decisions.
Out of the 700 projects registered in February, a staggering 237 failed to update their information despite receiving notices. As a consequence, suspension notices were issued for 485 projects, with the registration of 248 projects officially suspended. Similarly, 224 out of 443 projects registered in March faced suspension notices under Section 7 for non-compliance.
Stringent Measures: Freezing Bank Accounts and Restrictions
MahaRERA’s strict measures include freezing the bank accounts of non-compliant projects, effectively restricting them from engaging in activities such as advertising, marketing, and flat sales. Deputy registrars have been explicitly instructed not to register any sale transactions or deposits for these projects until they achieve compliance.
The regulatory authority initiated the monitoring of quarterly financial progress reports from January 23, with a specific focus on projects registered in February and March after January. This move is designed to enforce legal provisions that guarantee customer access to comprehensive project information.
Chairman’s Perspective: Ajoy Mehta on Compliance
Ajoy Mehta, Chairman of MahaRERA, stressed the significance of providing customers with reliable and transparent information. He stated, “Completion of quarterly and annual forms is an inherent, essential, and inevitable aspect of regulatory provisions in the real estate sector.”
Despite increased collaboration from developers, MahaRERA maintains its vigilance against any passivity and indifference, making it clear that non-compliance will not be tolerated.