The Maharashtra Real Estate Regulatory Authority (MahaRERA) has carried out inspections of over 125 real estate projects worth over Rs 2,000 crore over suspected financial irregularities being seen in the information provided to MahaRERA by the developers, senior MahaRERA officials told Moneycontrol.
The inspection was carried out where significant amounts had been spent from the receivables of homebuyers, but very little construction work had been done. “We had begun site inspections by appointing investigators in February 2023,” a senior MahaRERA official said.
What is the scope of work for investigators?
According to MahaRERA officials, while reports on a few projects have already been submitted, investigators are preparing reports on others after actual progress on the construction and other related matters is inspected.
The report format includes project details such as stages of construction, target of completion approved by RERA, target set by the developer and opinion of investigators as to when they feel the project can be completed, the official said.
Majority of the projects that need to be investigated are in the Mumbai Metropolitan Region and Pune and are a mixture of lapsed and ongoing projects.
“We are calling developers for hearings post-submission of the inspection reports by investigators. There are some projects wherein financial wrongdoing is not derived (has not been found) post inspection, but information has not been updated on the MahaRERA website. These developers, we are asking them to comply fully, and upload all details,” the MahaRERA official said.
Also read: Maharashtra forms panel to probe developers who used fake documents to get approvals
Lapsed projects
In January, MahaRERA had said that inspectors would visit 300 construction sites among the 4,500-plus lapsed projects in Maharashtra for site inspections. The initiative to revive lapsed projects is being undertaken by the lapsed projects vertical of the real estate regulator.
Also read: 1,015 recovery warrants worth Rs 623 crore issued by MahaRERA against real estate developers
On June 22 2022, MahaRERA chairman Ajoy Mehta had announced the formation of a dedicated vertical for lapsed real estate projects. The aim of this vertical is 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.
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