Stakeholders say decision made with the right intentions, but it would only distress homebuyers who are already burdened with loans
The MahaRERA serves a 30-day notice to project developers and suspends projects in case of non-compliance. Representation pic
The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently suspended the registration of 248 housing projects registered in February 2023 and 224 projects registered in March 2023 over the lack of quarterly reports. Although made to discipline developers across the state, stakeholders say the decision will likely hit buyers and developers negatively by bringing sales to a halt.
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The Real Estate (Regulation and Development) Act requires developers to submit quarterly reports including details of sales, expenses, and changes made to the original plans. The suspension of registration was communicated at the end of their 30-day notices in July (for projects registered in February) and in October (for projects registered in March). While February saw a total of 700 registrations, March witnessed 443.
The MahaRERA has also served notices under Section 7 of the Act to over 700 projects, asking them to update their information within 30 days, failing which their registration would be suspended.
Pravin Makhija, real estate agent
Developers are supposed to update the quarterly reports under the Quarter Based Project Progress Reporting System set up on January 23 this year. The first quarterly report for January to March was to shed light on the financial health of the projects.
With registrations put on hold, developers cannot proceed with sales and sales agreements are in limbo. Homebuyers who have already invested in the projects are grappling with uncertainty about its future.
MahaRERA officials speak
“Information about a project’s progress should be available internally and to the public to empower customers to make informed decisions. Submitting quarterly and annual reports addresses necessary and inevitable concerns. It’s not just the regulatory’s responsibility but also the developer’s duty. Many projects have collaborated but there appears to be a lack of seriousness among many others. Such inertia and indifference cannot be tolerated,” Ajay Mehta, chairman, MahaRERA told mid-day.
Asked about homebuyers’ options in case of complete non-compliance and halting of a project, a MahaRERA official said, “In such cases, the buyer will have to file a complaint with the MahaRERA and it will be ensured that the customer receives the investment back from the builder.”
‘Buyers will suffer’
A homebuyer, requesting anonymity, said, “I booked a flat in the Heritage Makhdoom Heights project in Mumbai. It has been suspended by MahaRERA. I seriously do not know what to do as I have taken a loan and I have to pay instalments.”
Pravin Makhija, a real estate agent, said, “The decision is a good initiative, considering its long-term effect. But the buyers may suffer. Many who have booked a flat will not know how to proceed.”
“Developers should be served notices, fined or should face penal action, including jail time. Buyers should not suffer. Moreover, it usually takes nearly two years for a grievance’s first hearing in consumer court,” said Advocate Sulaiman Bhimani.
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