MahaRERA Suspends Registration of 1,950 Housing Projects for Non-Compliance

In a significant move to uphold transparency and accountability in Maharashtra's real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has suspended the registration of 1,950 housing projects across the state. This decision was prompted by missed completion deadlines and the failure of developers to update project details, in violation of the Real Estate (Regulation and Development) Act, 2016 (RERA).

The suspended projects span multiple districts, with Pune recording the highest number at 487, followed by Raigad (240), Thane (204), and Mumbai city and its suburbs (162). MahaRERA has frozen the bank accounts associated with these projects and instructed Joint District Registrars to halt all flat sales and purchases within the affected developments until compliance is achieved.

Widening the Scope of Enforcement

In addition to the suspensions, MahaRERA has initiated action against 3,499 additional projects that have failed to respond to notices issued by the authority. This is part of a broader crackdown on non-compliance in the state’s real estate sector.

In December 2024, MahaRERA had sent show-cause notices to developers of 10,773 lapsed housing projects. Within the stipulated 30-day response period:

• 5,324 developers (49.41%) submitted updates on their projects.

• 3,517 projects provided Occupancy Certificates, indicating completion.

• 524 projects applied for deadline extensions.

• 1,283 projects remain under scrutiny for further clarification.

The remaining developers failed to comply with the notices, prompting the authority to escalate enforcement measures.

MahaRERA’s Compliance Mandates

As per MahaRERA regulations, developers must specify a proposed completion date for their projects during registration. Depending on the status of the project at the deadline:

• Developers must submit Form 4 and an Occupancy Certificate for completed projects.

• For incomplete projects, developers are required to seek extensions for deadlines.

• In cases of insurmountable challenges, developers can apply for de-registration of their projects.

Moreover, developers are obligated to file quarterly and annual progress reports on MahaRERA’s platform to ensure transparency and keep homebuyers informed.

Chairman’s Statement on Compliance

MahaRERA Chairman Manoj Saunik emphasized the critical role of compliance in fostering transparency and financial discipline in the real estate sector. He stated:

“The primary objective of the Real Estate (Regulation and Development) Act, 2016 is to ensure transparency, accountability, and financial discipline in the real estate sector. Every housing project is required to update its status on MahaRERA’s website periodically, keeping homebuyers informed.”

He highlighted a January 2023 review by the Compliance Cell, which revealed that only three out of 748 projects had updated their information. However, persistent follow-ups and strict enforcement have resulted in significant improvements, as evident from the responses to the recent show-cause notices.

Safeguarding Homebuyers and Boosting Sector Transparency

MahaRERA’s actions reflect its unwavering commitment to protecting homebuyers’ interests. By enforcing compliance, the authority ensures that developers adhere to project timelines, maintain financial discipline, and provide regular updates. These measures are pivotal in restoring trust in the real estate sector and safeguarding investments.

The freezing of bank accounts and suspension of sales highlight MahaRERA's resolve to hold developers accountable. Such steps aim to deter future non-compliance and bring about systemic changes in the real estate sector.

Looking Ahead: A Transparent Real Estate Ecosystem

MahaRERA’s proactive approach sets a precedent for other states to emulate. By enforcing stringent compliance measures, the authority is not only protecting homebuyers but also promoting a culture of transparency and accountability. These steps are crucial in establishing Maharashtra as a benchmark for regulatory standards in India’s real estate industry.

As developers strive to align with MahaRERA’s guidelines, homebuyers can look forward to a more secure and transparent property market in the years to come.