MahaRERA initiates scrutiny of all lapsed projects

The Maharashtra Real Estate Regulatory Authority MahaRERA has so far issued showcause notices to 10773 lapsed projects that were registered with the regulator since May 2017The notices have been issued to developers who have failed to update their projectrsquos status and related information with MahaRERA even after the projectrsquos completion date was initially submitted with the regulator MahaRERA has taken serious cognisance of this irregularity and has issued show cause notices to around 10773 projects explained a MahaRERA officialThe developers of the lapsed projects are expected to submit an Occupation Certificate OC with Form 4 or seek an extension of projects The application is to be supported with the requisite documents In cases of such failures MahaRERA may initiate strict action against the erring projects Under this so far MahaRERA has initiated action by directly suspending or cancelling the projectrsquos registration imposing punitive action and issuing instructions to the Joint District Registrar directing not to register any purchase and sale of any flats in such projects Even bank accounts associated with such projects may be frozen the official saidSection 111b c d and e of The Real Estate Regulation and Development Act 2016 makes it mandatory to update quarterly progress reports of every project MahaRERArsquos order 332022 issued in July 2022 also states the action that may be initiated with regard to lapsed projects he addedHe continued ldquoOf the 10777 projects the Mumbai Metropolitan Region which includes the surrounding northern Konkan region has the highest lapsed projects at 5231 followed by Pune region with 3406 Nashik 815 Nagpur 548 Sambhaji Nagar 511 Amravati 201 Dadra amp Nagar Haveli 43 and Daman amp Diu 18 projectsrdquoWhen applying for a MahaRERA registration number every builder has to unambiguously mention the scheduled date of the projectrsquos completion Towards the completion date an occupancy certificate along with Form 4 certifying the project has been completed is mandatory to be submitted the official saidIn case the project remains incomplete the builder is expected to move the deadline extension application Alternatively if there are any issues with starting the project it becomes necessary to apply for deregistration of the project As per Sections 3 4 5 and 11 of the Real Estate Regulation and Development Act 2016 as well as the order 332022 of July 2022 it is mandatory for the developers to update their projectrsquos projects every quarter as well as share annual reports on the websiteMahaRERA Chairman Manoj Saunik confirming the same said ldquoThrough the Compliance Cell as per the regulatory provisions the MahaRERA has initiated micromonitoring of the real estate sector at multiple levels Each of the projects registered with MahaRERA is required to submit a quarterly report as well as the projectrsquos status on the website on a periodic basis Presently in Maharashtra there are 10773 real estate projects that have lapsed leading to investments of several homebuyers getting stuckrdquoSaunik continued ldquoAs per the regulation it is mandatory for the developers to submit an Occupancy Certificate OC along with Form 4 of their respective projects or to seek deadline revision After the 30day window provided to the developer has expired and the developer hasnrsquot initiated any attempt to submit OC with Form 4 or sought a deadlinersquos extension MahaRERA is left with no other alternative but to either cancel or suspend the projectrsquos registration This also means imposing restrictions on the sale and purchase of flats in such projects and also to freeze the bank accounts associated with the projects MahaRERA urges the real estate industry not to put itself into such a situationrdquo