Mumbai, February 26: The Maharashtra Real Estate Regulatory Authority’s (MahaRERA) strict action against erring developers has yielded good results, with stakeholders voluntarily updating quarterly progress reports (QPR) on the portal. However, there continues to be a sizable number of developers who are not complying with the regulations.
There is an increasing trend in the developers voluntarily or without show cause notice updating QPR. This has happened due to MahaRERA initiating strict action against violators such as suspension of projects by serving them notices back in January 2023, a press note issued by the regulatory body said.
Out of 633 projects reported in June 2023, 333, i.e. 52.6% projects updated all the required forms and submitted them to MahaRERA prior to the due date. In January 2023, this ratio was just 2 out of 746, i.e. 0.03%.
Details Of QPR Compliance Without Notice (2023):
- 131 out of 700 projects (19%) in February
- 150 out of 443 projects (34%) in March
- 222 out of 480 projects (46.3%) in April
- 190 out of 383 projects (49.6%) in May
- 333 out of 633 projects (52.6%) in June
According to MahaRERA chairman Ajoy Mehta, “comprehensive information on projects is publicly available through quarterly progress reports. In order to closely and effectively monitor these regulatory provisions, MahaRERA has implemented a Financial Quarter-Based Project Progress Reporting System from the first quarter of the projects registered from January 2023.
“MahaRERA has also taken action to suspend direct registration of projects that do not submit quarterly forms. As a result, some discipline was created and the number of projects submitting progress reports without any notice is increasing month by month. Even though this is satisfactory, the number of those who actually do not submit the forms and still do not respond despite paying the penalty is significant. This is a serious matter. MahaRERA will not tolerate this indifference and irresponsibility towards customers under any circumstances,” he said.
Some Developers Still Flout QPR Rules:
While there has been positive outcome, there are developers who continue to not share quarterly updates. “There are 234 out of 886 developers who have not submitted the QPR despite paying the requisite penalty. Whereas, those who have not responded despite serving them with notices and initiating action stands at 323. Both categories put together, the number of non-responders stands at 557, which is 62.86%,” the press note said.
In addition to Section 11 Regulation Rules 3, 4 and 5 of the Real Estate Act, as per Section 3 and 4 of Order No 33/2022 dated July 5, 2022, every developer is required to submit the prescribed statement forms quarterly / annually to MahaRERA and update them on the website. This helps in providing the latest status of project’s construction, cost and so on, and also points out errors in time. This enables the home buyers to conveniently access all the official information about any project they have invested in or want to invest in.
Therefore, to ensure implementation of these provisions that are in the interest of the home buyer, MahaRERA had initiated the ‘Scrutiny of Quarterly Financial Progress Report of Projects’ from the first quarter starting January 2023 (Financial Quarter-Based Project Progress Reporting System). MahaRERA has initiated strict action such as suspension of projects, freezing of bank accounts, restrictions on sale of flats as well as project’s marketing, etc, against those not complying with the mandatory periodical requirements.
