The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to summon a few real estate developers over allegedly not allowing private investigators hired by the authority to inspect the project sites over suspected financial irregularities.
According to MahaRERA, it has completed site visits of four project sites after investigators began visits starting February 20, and is in the process to summon one developer from the Mumbai Metropolitan Region (MMR) who did not allow investigators to inspect the site. However, MahaRERA officials said the names of the developers will be released at a later stage.
The MahaRERA has identified over 300 projects worth more than Rs 500 crore each in Maharashtra for suspected financial irregularities where more expenses have been shown by developers against actual construction work.
Last September, Moneycontrol had reported that MahaRERA had prepared a list of 300 large projects, worth over Rs 500 crore each, where a significant amount had been spent but very little work had been completed.
A senior MahaRERA official not wishing to be named said, “We have conducted site visits of four projects in MMR. Additionally, at the fifth site, our team of investigators was not allowed to enter and, hence we have decided to send summons to that one developer.”
The official added, "Henceforth, we have decided to summon developers and ask them to remain present in our office and give explanations as to why they are not cooperating with the regulatory authorities."
Scope of the probe by investigators
According to MahaRERA officials, the investigators will prepare a report on the progress of the construction work and related matters on the project sites.
The report will include details such as stages of construction, the target date of completion approved by RERA, the 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 MMR and Pune and include a mix of lapsed and ongoing projects.
Also read: 26 percent jump in stalled real estate projects in under a year: MahaRERA
Notices to two developers over advertisement
According to MahaRERA officials, they have additionally issued notices to two developers from the state for publishing advertisements of their real estate projects without giving MahaRERA project registration numbers.
An official said, “The developers even after six years are not getting used to the new system. Hence, we are monitoring all the advertisements by these developers and will issue notices to them over the same.”
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