The Maharashtra Real Estate Regulatory Authority (MahaRERA) has begun an investigation into all housing projects that have lapsed and has issued show-cause notices to approximately 11,000 of these projects, primarily concentrated in the Mumbai Metropolitan Region.
These notices target developers who have not provided updates regarding their project status and related information to MahaRERA, despite the initial completion dates submitted to the regulator.
MahaRERA is addressing this issue seriously and has sent show-cause notices to around 10,773 projects, registered with the authority since May 2017.
The regulator has warned that failure to respond within 30 days may lead to the suspension or cancellation of project registrations, alongside restrictions on flat sales and the freezing of associated bank accounts.
Highest Number of Lapsed Projects in MMR
Among the 10,777 lapsed projects, the Mumbai Metropolitan Region, including the northern Konkan area, has the largest share, totaling 5,231 projects. This is followed by the Pune region with 3,406, Nashik with 815, Nagpur with 548, Sambhaji Nagar with 511, Amravati with 201, Dadra & Nagar Haveli with 43, and Daman & Diu with 18 projects.
Developers of these lapsed projects are required to provide an Occupation Certificate (OC) with Form 4 or request an extension for their projects. All applications must be accompanied by the necessary documentation.
Strict Measures Against Non-compliant Developers
To date, MahaRERA has proactively suspended or cancelled registrations of non-compliant projects, imposed penalties, and instructed the Joint District Registrar not to process any sale or purchase of flats connected to these projects. It has also signaled that bank accounts linked to such developments may be frozen.
Under Sections 11(1)(b), (c), (d), and (e) of The Real Estate (Regulation and Development) Act, 2016, it is compulsory for all projects to provide quarterly progress updates. An order from MahaRERA issued in July 2022 outlines actions that can be taken regarding lapsed projects.
Builders are mandated to submit applications for deadline extensions if a project remains unfinished. Alternatively, if there are obstacles to beginning construction, an application for de-registration must be filed.
As per regulatory requirements, MahaRERA has implemented a detailed monitoring system for the real estate sector through its Compliance Cell. Each project registered with the authority must provide a quarterly report and regularly update the project status on its website. Currently, 10,773 real estate projects in Maharashtra have lapsed, affecting numerous homebuyers, as stated by Manoj Saunik, Chairman of MahaRERA.
“According to the regulations, developers are required to submit an Occupation Certificate (OC) alongside Form 4 for their projects or request an extension. If developers fail to act on this after the provided 30-day period, MahaRERA will have no choice but to cancel or suspend the project’s registration. This would also result in sales and purchases of flats being restricted and the freezing of linked bank accounts. MahaRERA urges the real estate sector to avoid finding themselves in such a predicament,” he said.