MahaRERA issues notices to 19,000 real estate projects in 20 days over non-compliance

Representational image.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) in the last 20 days has issued notices to 19,539 real estate projects in the state over non-compliance relating to failure from uploading details like financial disclosures, CA certificates and architect certifications on its website, MahaRERA officials told Moneycontrol on January 30.

According to MahaRERA, out of the total notices they have got reply from 167 projects, which are being scrutinised. All the developers of these projects have been given 30 days to reply to the MahaRERA for the mandatory disclosure.

Also read: MahaRERA to issue notices to 18,000 real estate projects for failing to upload info

Why is it mandatory?

After registering any real estate project in MahaRERA, as per Section 11 of the RERA Act, the project developer is required to update the information given at the time of registration on the MahaRERA website every three months. Based on these updates, homebuyers and potential homebuyers are kept informed about the project status and finances of the projects.

A MahaRERA official said, "Once the developers update information, we will come to know about the worth of their projects in terms of money. Those who do not complete the compliance can be penalised and the amount will depend on their respective project cost.”

Also read: MC Explains | The difference between RERA-registered, 'approved' and compliant projects

What are the violations?

According to the RERA Act, every developer is required to keep 70 percent of the money received from customers in a separate account as per the RERA registration number.

When the money is withdrawn at each stage of construction, a certificate from the project engineer, architect and chartered accountant on the percentage of project completion, quality and unrealised cost must be submitted to the bank. A quarterly inventory of flats and plots sold in the project has to be posted on the website.

It is also mandatory for every developer to have the project account audited every six months.

MahaRERA, however, found that in many projects this was not done. Owing to this, and considering several other violations, MahaRERA has issued notices to these 19,000-plus projects.

How many registrations?

Ever since MahaRERA came into existence in May 2017, more than 36,000 projects have been registered with it. Of these, more than 4,500 lapsed while close to 10,000 projects have been completed.

Site visits to begin after February 6

According to MahaRERA officials, investigators appointed by them 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 projects.

Also read: MahaRERA investigators to begin site visits of real estate projects over suspected financial wrongdoings: officials

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. However, the site visits are expected to begin post February 6, MahaRERA officials said.