The sword of action is hanging on 563 real estate firms violating the rules in making housing residence projects. The Maharashtra Real Estate Regulatory Authority (MAHARERA) has issued action notices to over 563 housing projects in the state for not updating information related to their projects.
The Maharashtra Real Estate Regulatory Authority said that it has issued cancellation notices to promoters of a total of 563 housing projects for not updating project details and violating other norms. These are part of a total of 746 new housing projects, comprising 50,288 apartments worth approximately Rs 22,449 crore, that were registered with the regulator in January.
As per the Real Estate Act 2016, once a project is registered with the regulator, certain information provided by the promoter of the project at the time of registration needs to be updated every 3 months and financial details once a year. By not updating these details, the developers mislead the home buyers, due to which the customer sometimes feels cheated.
Action is being taken to cancel the registration of all project promoters after the investigation on the instructions of MahaRERA chief Ajoy Mehta. The regulatory body has started monitoring the financial progress report of the project from the first quarter of the financial year 2023-24. By doing this, MahaRERA is trying to bring more transparency in the sector, where home buyers can also get access to all the details related to a project.
Developers adopting different tactics
Developers in Delhi NCR are finding new ways to avoid RERA, in which builders are registering the land by giving 25 per cent share to four different owners and then starting development so that they do not come under the purview of RERA. For example, if there is 1,000 square yards of land, it is divided among four owners and then developed. The developed area shall not exceed 500 square meters and the developer shall be exempted from registration. RERA is keeping an eye on those who do this trick.
