Mumbai: MahaRERA starts sending notices to 18,000 developers

Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has initiated the process of issuing around 18,000 show cause notices to developers as a review of real estate projects showed that a substantial number of developers are not updating information on projects.

“An initiative was undertaken to review and monitor the projects registered with MahaRERA. The forum started reviewing the projects registered since 2017, which is since the establishment of the regulatory authority,” said an official.

Once a housing project is registered with MahaRERA and launched in the market, under section 11 of the Real Estate (Regulation and Development) Act, the developer is required to update information every three months.

According to the RERA Act, the developer is required to have an escrow account and route all transactions through it. All updates with regards to litigation, finances, construction status, project completion status, agents associated with the project, inventory available status, and audit report, are to be posted on MahaRERA portal.

As several of developers have been negligent in keeping the regulator and homebuyers updated periodically, MahaRERA has already sent 2,000 show cause notices to bring the errant builders to book. As many as 16,000 more will be sent later this month.

There are 38,458 projects registered with the regulator and 9,954 projects have been completed, according to MahaRERA’s website.

“All these promoters have been given 30 days from the date of notice to rectify the deficiencies. Those who do not respond, rectify and update the project information, will be liable for penal action as p MahaRERA. Also, the promoters will have to pay a fine,” said a MahaRERA official.

Published on: Thursday, January 12, 2023, 05:37 AM IST