MahaRERA Issues Show Cause Notices To 41 Developers For Advertising Projects Without Registration

MahaRERA Issues Show Cause Notices To 41 Developers For Advertising Projects Without Registration

Of the 41 violating projects, majority are from the Pune region, 13 from Konkan region and 7 belonging to Nagpur region.

Rahul MUpdated: Thursday, February 01, 2024, 09:05 PM IST
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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has initiated Suo Moto action against promoters and developers who are selling plots without registering their project with the authority, a press note issued by the regulatory body said on Thursday.

Show cause notices have been issued to 41 promoters across the state who have advertised their projects without obtaining a MahaRERA registration number.

Imperative to obtain MahaRERA registration number before advertising: MahaRERA chairman

According to Ajoy Mehta, chairman, MahaRERA, it is imperative to obtain MahaRERA registration number before advertising any sale of plots, flats and buildings. “It amounts to violation of law to advertise and sell plots without obtaining MahaRERA’s registration number. The idea is to protect the rights of investors. MahaRERA does not tolerate any irregularities in the real estate sector and therefore, show cause notices have been issued with the sole purpose of protecting investor/purchaser interest.”

According to the press note, MahaRERA office bearers have observed that there are advertisements placed by developers to sell “Non-Agricultural Plots” and these projects are being sold in the market without obtaining MahaRERA registration number.

As per Section 3 of the Real Estate (Regulation and Development) Act, 2016, registration with the MahaRERA is essential for the sale of a plot, flat or building subject to certain conditions. Apart from that, promoters cannot advertise the sale of plots, flats or buildings.

Of the 41 violating projects, majority are from the Pune region, 13 from Konkan region and 7 belonging to Nagpur region. A sizable number of the violations are from the belts that are either semi urban, near a city or in a rural area. However, in urban areas, the number of such plot related projects sales are negligible, the press note added.

MahaRERA treats applications of plotted projects at par with those of residential buildings. Thus, Financial, Legal and Technical scrutiny is done for plot related projects as well.

Need for relevant and statutory approvals

The promoter is required to obtain relevant and statutory approvals from the Local Planning Authorities. Local authorities check the ownership, plot size, total area, plot’s boundaries, non-agricultural certificate (NA), etc. The promoter/ developer is responsible for providing civic amenities including water supply, internal roads, sewerage, public facilities, common areas, etc. Occupancy certificate is issued by the local planning authority only after a satisfactory assessment of the provision of these amenities. Without these pre-requisites  MahaRERA also does not issue a registration number, the note maintained.

Once the project is registered with MahaRERA, the promoters have to fulfil a set of rules as stated under the Real Estate Act.  MahaRERA has appealed to people not to transact and get defrauded by plots and projects that do not have a MahaRERA number.

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