The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced its intention to revoke the registrations of 291 real estate projects, effective from November 10. This decision comes on the heels of a September 2023 announcement wherein MahaRERA suspended the registrations of 388 real estate projects in Maharashtra due to widespread non-compliance and violations of the RERA Act, 2016.
Non-Compliance Persists Despite Warnings
A report published in Money Control mentioned that despite receiving suspension notices, a substantial portion of the affected realtors, precisely 291 out of the original 388, have failed to bring their projects in line with the stipulated RERA provisions. As a consequence, MahaRERA has decided to take action post-November 10, shedding light on the gravity of the situation. Following the initial suspension announcement, some developers made last-minute attempts to rectify the situation, leading to a reduction in the number of suspended projects from 388 to 363. Of these, 72 projects have managed to comply with the regulations and have paid a penalty of Rs 50,000 each. MahaRERA is currently scrutinizing these compliance efforts. However, 291 projects still remain unresponsive to the regulatory authority's directives.
Restrictions on Sales, Marketing, and Advertising
In a bid to enforce compliance, MahaRERA has imposed restrictions on the suspended projects. Sales, marketing, and advertising activities for these projects have been curtailed, significantly impacting their operations and profitability. Sub-registrars have also been directed not to register sale agreements and sale deeds for flats in these suspended projects. All 388 projects that faced suspension had initially been registered in January 2023. MahaRERA's decision to suspend these registrations was driven by the necessity to ensure compliance with regulatory provisions mandating the online publication of project details on its website.
Warnings Unheeded
MahaRERA had issued notices to non-compliant projects registered in January 2023, providing developers with ample time until April 20, 2023, to upload critical project information such as the number of flats, funds received, and funds utilized on the regulator's website. Unfortunately, a significant number of developers failed to meet this requirement, leading to the issuance of notices and, ultimately, the suspension of registrations, accompanied by the imposition of a Rs 50,000 penalty.
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