It was May of this year when the Maharashtra Real Estate Regulatory Authority (MahaRERA) issued cancellation notices to over 563 promoters of housing projects in the state for not updating crucial information on its portal pursuant to Section 11 of “Real Estate (Regulation and Development) Act, 2016”.
Section 11(1) of this Act specifically provides for the promoters to quarterly update some crucial information relating to their projects for the convenience of home buyers.
Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken strict action against non-compliant developers who fail to update crucial information related to their housing projects. Over 563 promoters of housing projects in the state have been issued cancellation notices for not complying with the mandatory update requirements. These projects are part of a larger pool of 746 new housing projects, valued at approximately Rs 22,449 crore. Under Section 11 of Real Estate (Regulation & Development) Act, 2016, promoters are obligated to update specific information every three months and financial details annually. MahaRERA's portal provides homebuyers with reliable information about the progress and costs of specific housing projects.
In response to the lack of updates, MahaRERA issued a 15-day show-cause notice to all 746 developers. Regrettably, only 183 developers responded by updating their quarterly reports on the website. The remaining 563 developers' non-compliance raised serious concerns for MahaRERA, leading to a show-cause notice being issued to them as to why the registration of their projects should not be cancelled. Failure to respond to this notice within 45 days resulted in the cancellation of their project registration, affecting all project-related transactions, including bank accounts, new registrations, and construction.
This is not the first instance of MahaRERA taking strict actions against non-compliant developers. Previously, around 16,000 real estate developers and promoters across the state were issued notices for unsatisfactory responses regarding their project information. MahaRERA has started reviewing projects registered since its inception in May 2017 until March 2022. Following this, in January 2023, show cause notices were issued to 19,500 projects that had not updated mandatory project information as per the Real Estate (Regulation and Development) Act, 2016.
In addition to financial updates, developers must provide other important details, such as changes in encumbrances reports and updates from the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). Promoters must also update any changes in project professionals within three months of most allottees booking their plots, apartments, or buildings. MahaRERA's strict actions serve as a clear message to developers that compliance with regulations is non-negotiable. By ensuring transparency and accountability in the real estate sector, MahaRERA aims to protect homebuyer interests and promote a healthy real estate market in Maharashtra.