More than six months after the initiation of notifications to project promoters, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken decisive action against 388 housing projects. These projects have neglected to update their Quarterly Progress Reports (QPRs) on the MahaRERA portal, resulting in the suspension of their registrations.
Crackdown on Non-Compliant Projects
A report in the Hindustan Times mentioned that MahaRERA's crackdown comes after an extensive period of notification and warnings issued to the promoters of registered projects who failed to update essential project information. The Authority's decisive action was revealed on Monday as they ordered the freezing of bank accounts associated with these projects and banned them from marketing any housing inventory. Additionally, they directed the Inspector-General of Registrar of Stamps and Registration to withhold registration of any sale agreements originating from these projects.
Geographical Distribution of Non-Compliant Projects
Among the 388 projects facing regulatory action, a geographical distribution reveals that 127 are situated in the Mumbai metropolitan region, 120 in western Maharashtra, 57 each in North Maharashtra and Vidarbha, 16 in the Marathwada region, and 11 in Konkan. It's noteworthy that many of these project developers are relatively small and not widely recognized in the industry.
January Registration Surge
In January of this year, MahaRERA saw a surge in registrations, adding 746 new housing projects to its portfolio. In response to persistent criticism regarding its efficacy, the Authority initiated a proactive monitoring effort. They appointed retired IAS officer Sanjay Deshmukh as a nodal officer to gather information on projects that were neglecting mandatory updates. Subsequently, notices were served to projects found to be non-compliant.
Obligation for Project Promoters
Project promoters for the 746 recently registered projects were mandated to update their QPRs every three months. These reports were designed to provide precise details on various aspects of project status, including the number of units available, units booked, configurations, construction progress, and financial information related to funds collected through bookings and expenditures during the quarter. Project promoters were instructed to complete Form Numbers 1 to 3 to provide this information and upload it to the MahaRERA portal.
Low Compliance and Subsequent Action
A MahaRERA official disclosed that initially, only three projects responded to their appeals for compliance. Consequently, the Authority issued two show cause notices, granting ample time for project promoters to comply. Out of the 746 projects, 358 responded to the notices, while regulatory action was taken against the remaining 388 projects whose promoters did not respond.
RERA Compliance and Transparency
Section 11 of the Real Estate (Regulation and Development) Act (RERA) mandates project promoters to provide quarterly and annual progress reports on the MahaRERA portal. Furthermore, MahaRERA has made it obligatory for projects to display QR codes, an initiative aimed at providing potential homebuyers with up-to-date, transparent information on ongoing projects. This transparency assists buyers in making well-informed purchasing decisions. Beginning in early 2024, the Authority intends to introduce a grading system to highlight the best projects available for consumer investment.
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