Starting February, investigators appointed by the Maharashtra Real Estate Regulatory Authority (MahaRERA) will visit project sites to check whether developers have declared higher costs than they have actually incurred on the project. The investigators will initially visit 40-45 such real estate projects.
Last September, Moneycontrol had reported that MahaRERA had prepared a list of 300 large real estate projects (worth over Rs 500 crore each), where a significant amount had been spent but very little work completed.
Also read: MahaRERA to inspect construction sites for financial wrongdoings, over 300 large projects on radar
A senior MahaRERA official not wishing to be named said, "We have already empanelled investigators for in-person site visits. We are in the process of preparing a format for sending letters of intimation to the developers before visiting the site. Once this format is prepared, we will send the intimation notices and 40-45 real estate projects will be visited on priority."
The official added, "The visits can be started any time by February, and we aim to revive several projects by various means. We have a list of the expenses shown by developers for several projects where very little work has been done. Nonetheless, we are sending 18,000 notices to developers to upload the mandatory documents on the MahaRERA website. This will ensure that we have accurate information." These notices will be sent out by the end of January.
The investigators’ scope of work
According to MahaRERA officials, the investigators will prepare a report on the actual progress of the construction work and other related matters pertaining to the project site.
The report will include details such as stages of construction, target date (added) of completion approved by RERA, target date set by the developer, and the opinion of the investigators as to when they feel the project can be completed, the official said.
Investigators will have to complete the inspection and submit the report as per the timeframe decided by MahaRERA. The majority of projects that need to be investigated are in the Mumbai Metropolitan region and Pune, and include mix of lapsed and ongoing projects.
Lapsed projects
Some of the 300 construction sites that the inspectors will visit are among the 4,500-plus lapsed projects in Maharashtra. The initiative for reviving lapsed projects is being undertaken by the lapsed projects vertical of the MahaRERA.
On 22 June 2022, MahaRERA Chairman Ajoy Mehta had announced the formation of a dedicated vertical for lapsed real estate projects. The aim of this vertical was to get such projects moving either by getting the existing developer to take it forward, or by getting buyers to take over the project, or by roping in a new developer.
“We have verticals for grievances, complaints, registrations, adjudication, and administration. Similarly, this vertical will be for stalled projects. Of 4,500 stalled projects, 1,500 do not have any bookings. In terms of apartments, only 1.72 lakh of 3 lakh apartments that are stuck have been booked. My priority is stalled projects where money from homebuyers is involved. The approximate worth of stuck projects is expected to be Rs 78,000 crore. We will tackle the money of banks and financial institutions stuck in such projects at a later stage,” Mehta was quoted as saying.
5,000 notices issued till now for non-compliance
MahaRERA officials have issued more than 5,000 notices over the developers' failure to upload details like financial disclosures, CA certificates, and architect certifications on its website, along with including other compliance issues.
Also read: MahaRERA to issue notices to 18,000 real estate projects for failing to upload info
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!