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Over 5,000 Projects Labeled 'Lapsed' in MMR: MahaRERA to Hold Developers Accountable

Developers who have not updated the status of their projects and relevant information on the MahaRERA website, even one month after the project's completion date, have been sent notices.

Over 5,000 Projects Labeled 'Lapsed' in MMR: MahaRERA to Hold Developers Accountable
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Since the projects fall under the "lapsed" category, show-cause notices have been sent to the developers of more than one-fifth of the projects that are registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA). Notices have been sent to 10,773 of the 48,094 registered projects since the beginning of December.

Developers who have not updated the status of their projects and relevant information on the MahaRERA website, even one month after the project's completion date, have been sent notices. According to regulations, developers must provide an update on the status of a project within 30 days of its completion date.

In the event that these developers do not reply to the show cause notice within a month, MahaRERA would take legal action to hold them responsible and safeguard the rights of homebuyers.

Since MahaRERA's compliance department was closely examining every registered project on several criteria, the large number of lapsed projects became apparent.

The Mumbai Metropolitan Region (MMR), which encompasses the surrounding northern Konkan region, has the most lapsed projects (5,231) out of the 10,773 projects that are being examined. This is followed by the Pune area (3,406), Nashik (815), Nagpur (548), Sambhaji Nagar (511), Amravati (201), Dadra & Nagar Haveli (43) and Daman & Diu (18).

An official from MahaRERA said that there is a possibility that the project was completed by the developer but the developer has not uploaded the required documents. This is the reason behind getting the lapsed category tag. During scrutiny they will get to know about how many of the 10,773 projects have been completed and how many of them have stalled or are under process, he further added.

Manoj Saunik, chairman, MahaRERA, said that each of the projects registered with MahaRERA have to submit a quarterly progress report. They also have to update the project's status on the website, on a periodic basis. As of now 10,773 real estate projects in Maharashtra have lapsed, leading to investments of several home purchasers getting stuck.

As per regulations, developers must submit the Occupancy Certificate (OC) along with Form 4 (the architect’s project completion certificate) for their respective projects or request a deadline extension. If the developer fails to comply within the 30-day window, MahaRERA has no choice but to suspend or cancel the project’s registration. When a project lapses, restrictions are placed on the sale of flats, and the project’s associated bank accounts are frozen. This ensures adherence to timelines and safeguards buyers' interests while holding developers accountable for completing the necessary documentation on time or seeking appropriate extensions, he added.

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