In a significant move to enforce transparency and protect homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has frozen the bank accounts of over 1,950 stalled or lapsed real estate projects. This action targets developers who have failed to meet regulatory requirements or provide timely updates about their projects, leaving homebuyers in the lurch.
The Drive for Compliance
MahaRERA issued show-cause notices to developers whose projects exceeded their completion deadlines without necessary updates on the regulator's website. These developers were given a 30-day window to comply, ensuring accountability under the Real Estate (Regulation and Development) Act, 2016. The Act mandates quarterly and annual updates on project progress to protect homebuyers' interests and maintain financial discipline in the sector.
Compliance Review Outcomes
- Of 10,773 lapsed projects served with notices:
- 5,324 developers responded.
- 3,517 submitted Occupancy Certificates (OC).
- 524 applied for deadline extensions.
- 1,283 responses are under scrutiny.
- Registrations of 1,950 projects have been put in abeyance, with restrictions on transactions.
- For 3,499 non-responsive projects, similar actions are underway.
Stringent Regulatory Measures
MahaRERA has intensified its approach to ensure compliance. Non-compliant projects face severe penalties, including:
- Suspension or cancellation of project registrations.
- Halting property registrations by instructing Joint District Registrars.
- Imposition of fines on errant developers.
Developers are also required to submit Form 4 with an OC upon completion or apply for deregistration if projects are delayed. Additionally, quarterly and annual progress reports must be submitted with supporting documents to maintain project transparency.
Impact on Homebuyers and the Real Estate Sector
This bold move reflects MahaRERA's commitment to restoring confidence in the real estate market. By holding developers accountable, the regulator aims to protect homebuyers and push developers toward completing long-delayed projects. The crackdown also sends a strong message to developers about adhering to real estate regulations and ensuring timely project updates.