MahaRERA issues registration cancellation notices to 563 project developers.
These are part of a total 746 new housing projects covering 50,288 apartments worth around Rs 22,449 crore that were registered with the regulator in January.
Over 563 housing project promoters in the state of Maharashtra have received cancellation notifications from the Maharashtra Real Estate Regulatory Authority (MahaRERA) for failing to update information about their projects.
These are a part of the 746 new housing projects overall that total 50,288 flats and were filed with the regulator in January. They are estimated to be worth roughly Rs 22,449 crore.
According to the Real Estate (Regulation & Development) Act of 2016, once a project has been registered with the regulator, some information submitted at the time of registration by the project’s promoter must be updated every three months, and financial facts must be updated once a year.
The project’s promoter is required to provide updates on information including the number of registrations, funds collected, and expenses incurred.
The regulator’s portal should make it simple for a house buyer to access accurate information and updates regarding the individual housing project, its status, cost, and many other facts.
In May, MahaRERA gave each of these developers a 15-day show-cause period to amend this data.
On the website, 183 of these developers have updated their quarterly reports. The regulator has taken the remaining 563 developers’ lack of concern for homebuyers seriously and has sent each of them a show-cause notice asking them to explain why the registration of their projects shouldn’t be revoked.
If the developers don’t answer within the 45-day window specified by the regulator, the project registration may be cancelled. The regulator has given these developers this directive.
If the registration is cancelled, the project’s financial transactions, new registrations, and construction may all be put on hold.
Prior to this, MahaRERA had sent notifications to over 16,000 developers and promoters of real estate projects throughout the state for not receiving sufficient answers to questions concerning their projects.
The regulator has begun assessing the projects filed since the system’s debut in May 2017 through March 2022 as part of enabling the Close Monitoring System.
Following this, in accordance with Section 11 of the Real Estate (Regulation & Development Act), 2016, MahaRERA had sent show-cause notifications to 19,500 projects that had not updated the required project information. But more than 16,000 project promoters either did not reply to these notices or answered insufficiently.
Beginning with the first quarter following registration, MahaRERA will now be monitoring and carefully reviewing the quarterly financial progress reports of these new projects. The developer is required to submit three different certificates to the scheduled bank when updating forms for money withdrawals from designated bank accounts, and these will also need to be submitted to MahaRERA through the online portal as and when they are submitted to Banks at the time of each withdrawal.
The developers are required to provide new information from the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) and modifications to the encumbrances report as part of regular updates.
Within three months of the majority of allottees having reserved their plot, flat or building, the project’s promoters are also expected to provide updates on any changes to the project’s professionals, including the architect, engineer, chartered accountant, real estate agents and formation of a legal entity or society.