Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued notices to over 11,000 lapsed housing projects across Maharashtra, with more than 5,230 projects in the Mumbai Metropolitan Region (MMR) alone. These notices target developers who have failed to submit mandatory project updates, such as the Occupation Certificate (OC), or request extensions to their project deadlines since their initial registration in May 2017.
This regulatory action comes after MahaRERA noted serious delays and irregularities in the completion of various housing projects, leaving many buyers in limbo. Developers are required by law to update the status of their projects, submit an OC, or request an extension of the completion deadline as specified during their initial registration. However, many failed to meet these obligations, prompting the regulator to step in.
Manoj Saunik, Chairman of MahaRERA, emphasized that developers must submit the OC along with Form 4 or apply for a revised deadline. If the developer fails to comply within a 30-day window, MahaRERA is forced to either suspend or cancel the project’s registration. This measure includes imposing strict restrictions on the sale and purchase of flats in these stalled projects, as well as freezing associated bank accounts.
The Real Estate (Regulation and Development) Act, 2016, mandates that developers provide quarterly progress reports to MahaRERA, ensuring regular updates on their project timelines. For these 11,000 projects, the MMR region has seen the highest number of lapsed registrations, followed by Pune, Nashik, and other regions. The regulatory action aims to protect homebuyers from the risks associated with stalled projects, ensuring that developers adhere to their commitments. As the real estate industry grapples with delays, MahaRERA’s crackdown on non-compliant developers represents a firm step towards restoring trust and accountability in the sector. This move will likely have far-reaching effects, as developers are now under increasing pressure to either finalize their projects or seek official extensions, ensuring that the dream of owning a home does not remain unfulfilled for thousands of buyers across the state.
