Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken a strict stance against errant developers by suspending the registration of 1,950 housing projects across the state. The projects were flagged for missing completion deadlines and failing to update key project details, crucial under the MahaRERA compliance framework. This move aims to ensure transparency and timely completion of real estate projects, which directly impacts homebuyers.
The suspension order freezes the bank accounts of these projects and halts the registration of any flat sales or purchases until the developers meet compliance requirements. This enforcement action follows a series of warnings and notices issued to developers who failed to meet their obligations.
The highest number of suspensions occurred in the Pune district, with 487 projects affected. Raigad district followed with 240 suspended projects, Thane recorded 204, and Mumbai city and its suburbs accounted for 162 projects.
While MahaRERA has withheld the names of the suspended developers and projects, this sweeping action sends a clear message about the authority’s commitment to protecting homebuyers and ensuring regulatory adherence.
In addition to the suspended projects, MahaRERA is initiating action against another 3,499 housing developments that failed to respond to prior notices. These projects were issued show-cause notices in December 2024 as part of a broader crackdown on non-compliance.
Out of 10,773 lapsed housing projects identified in December, 5,324 developers (49.41%) provided status updates within the 30-day notice period. Among these:
Under MahaRERA regulations, developers must specify the proposed completion date of their projects at the time of registration. Upon completion, they are required to submit Form 4 along with an Occupancy Certificate. In cases where projects remain incomplete by the registered deadline, developers must apply for an extension. For projects facing insurmountable challenges, a de-registration application is mandatory.
Developers are also obligated to submit quarterly and annual progress reports on the MahaRERA website, ensuring continuous monitoring and transparency of the project’s status. Failure to adhere to these regulations invites penalties, including suspension of project registration.
This large-scale suspension is expected to have significant implications for the real estate market in Maharashtra. Industry experts believe that while the immediate impact may cause delays in sales and registrations, the move will foster greater accountability among developers in the long run.
Homebuyers, who often bear the brunt of project delays, have welcomed the enforcement action. “This will ensure developers complete projects on time and keep buyers informed about the real status of their investments,” said a representative of a homebuyers’ association.
Developers, on the other hand, have expressed concerns about the stringent enforcement, urging MahaRERA to offer more flexible compliance measures in certain cases where delays were beyond their control.
MahaRERA’s decision to suspend 1,950 projects highlights the regulatory body’s commitment to ensuring transparency, accountability, and timely delivery in the real estate sector. As further action is taken against non-compliant developers, stakeholders across the industry will closely watch how this crackdown impacts overall market dynamics and buyer confidence.
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