MahaRERA suspends registration of 388 projects, seals their bank accounts
These projects were registered in January this year, with MahaRERA mandating their quarterly updates by April 20.
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MahaRERA had issued show cause notices to 10,773 developers whose projects had missed completion deadlines without informing the regulator. (Representational) The Maharashtra Real Estate Regulatory Authority (MahaRERA) has cracked down on 388 real estate projects that failed to submit the obligatory quarterly project-based progress report by suspending the registration process and sealing the bank accounts associated with them.
These projects were registered in January this year, with MahaRERA mandating their quarterly updates by April 20. The prescribed reports were expected to encompass essential data, such as the number of flats sold, funds accumulated, expenses incurred, alterations in building plans, and other pertinent details.
A spokesperson from MahaRERA emphasised that this stringent action aims to establish regulatory compliance, ensuring that developers are held accountable for their reporting obligations within the real estate sector, and instilling a sense of discipline within the industry.
MahaRERA initiated the process by dispatching a 15-day notice to developers who had not furnished the requisite information. Subsequently, a 45-day show-cause notice was served. However, 388 project developers remained non-compliant.
In response to their lack of adherence, MahaRERA has suspended the registration for these 388 projects and sealed the bank accounts associated with them. Developers of these projects are currently prohibited from engaging in sales and marketing activities. The stamp duty and registration office have been instructed not to process agreements for the sale of these projects.
The impact of these actions is felt across various regions in Maharashtra, with the highest concentration of affected projects in Thane (54 projects), followed by Palghar (31), Raigad (22), Mumbai Suburban (17) and Mumbai City (3).
Projects in western Maharashtra, northern Maharashtra, Vidarbha, Marathwada and the Konkan region have also been affected by the suspension.
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