Maharashtra: Over 15,000 Housing Projects Could Face Penalties for Not Complying with RERA Act.
Mumbai, 3rd April 2023: Maharashtra Real Estate Authority (Maharera) has issued notices to the developers of 19,000 housing projects in the state, for failing to provide necessary information on the Maharera website as per the provisions of the RERA Act.
However, developers of 15,000 projects have not responded to these notices, even after being given multiple chances. A third notice will be issued, and if no response is received, penal action will be taken as per the RERA Act. An official from Maharera pointed out that this penal action is five percent of the project cost, which may result in a huge burden for the developers.
Under Section 11 of the RERA Act, developers are required to provide information on the website about the financial status of the project, the expenses incurred, the current status of the project, and the details of the flats sold, among others. However, it was found that this information was not available for 19,539 projects. Notices were issued to all these projects on January 10 and February 10, but only 20 percent of the developers responded. Notices will now be issued again to the remaining developers, and final notices will be sent through Maharera. If developers fail to provide the necessary information on the website even after this, penal action will be taken against them.
Over 40,000 projects have been registered in the state in the last six years, and 21,500 housing projects are currently in progress. Notices were issued after finding that information about 75 to 80 percent of the projects was not available on the website. An official from Maharera stated that all necessary steps will be taken to deter the developers from non-compliance.
The RERA Act mandates that every three months, after registering the project with Maharera, developers provide information about the number of available and reserved flats, received approvals, and milestones of project completion on the website. The plan approved by the planning authority of the housing project and a copy of the act must also be mentioned on the website. However, many developers have failed to provide this information, leading to Maharera’s actions.
