The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued show cause notices to 10,773 lapsed projects registered since May 2017. These notices target developers who have failed to update their project status and related information with MahaRERA, even after their project completion dates.
MahaRERA has emphasized the gravity of this issue, warning developers of potential consequences if they do not comply. Developers are required to submit an Occupation Certificate (OC) with Form 4 or seek an extension for their projects, supported by necessary documents.
Failure to do so may result in severe actions, including suspension or cancellation of project registrations, imposition of penalties, and instructions to the Joint District Registrar to halt the registration of any property transactions related to these projects. Additionally, bank accounts associated with such projects could be frozen.
The Real Estate (Regulation and Development) Act, 2016, mandates developers to provide quarterly updates on project progress. MahaRERA's Order 33/2022, issued in July 2022, outlines the actions that may be taken against lapsed projects.
The Mumbai Metropolitan Region, encompassing the northern Konkan area, has the highest number of lapsed projects at 5,231. This is followed by the Pune region with 3,406, Nashik with 815, Nagpur with 548, Chhatrapati Sambhaji Nagar with 511, Amravati with 201, Dadra & Nagar Haveli with 43, and Daman & Diu with 18 lapsed projects.
MahaRERA Chairman Manoj Saunik stated, "Through the Compliance Cell, MahaRERA has initiated micro-monitoring of the real estate sector at multiple levels. Each project registered with MahaRERA is required to submit a quarterly report and update the project's status on the website periodically. As per regulations, developers must submit an Occupancy Certificate (OC) along with Form 4 of their respective projects or seek a deadline revision. After the 30-day window provided to developers expires without submission of the OC or a deadline extension request, MahaRERA has no choice but to either cancel or suspend the project's registration. This also means imposing restrictions on the sale and purchase of flats in such projects and freezing associated bank accounts. MahaRERA urges the real estate industry to avoid such situations."
When applying for a MahaRERA registration number, builders must clearly state the scheduled completion date of their projects. As this date approaches, they are required to submit an occupancy certificate with Form 4 to certify the project's completion. If a project remains incomplete, builders must request a deadline extension. If there are issues preventing the start of the project, they must apply for deregistration.
Sections 3, 4, 5, and 11 of the Real Estate (Regulation and Development) Act, 2016, along with Order 33/2022, require developers to update their project status quarterly and share annual reports on the MahaRERA website. These regulations are designed to ensure transparency and accountability in the real estate sector.
