January 11, 2024
“The recent issuance of registration cancellation notices by the Maharashtra Real Estate Regulatory Authority (MahaRERA) has caused a lot of noise in the real estate industry. Over 563 housing project promoters now face the risk of losing their project registrations due to non-compliance with essential updates.”
In this blog post, we explain why it’s important for real estate developers to follow the rules set by MahaRERA. We also discuss what happens if they don’t follow the rules, and how this affects people who want to buy homes or invest in real estate. Read on to understand the importance of transparency and accountability in the real estate market and How By being transparent and accountable, developers can build trust with their customers and partners.
The Real Estate (Regulation & Development) Act, 2016, was a significant development in the real estate industry. It aimed to make the industry more transparent and protect consumers. The act requires developers to update crucial project-related information regularly. This includes financial details, project progress reports, and other relevant information that must be submitted every three months. Additionally, developers are required to provide financial details annually, offering potential homebuyers a comprehensive view of the project’s status.
The act has brought about a new era of transparency and accountability in the real estate sector. It ensures that developers keep their project-related information up-to-date, giving homebuyers and investors accurate and reliable information about their investment. This level of transparency helps build trust between developers and their customers, which is essential in the real estate industry.
The act has also made it mandatory for developers to provide financial details annually, which has added an extra layer of transparency. This information gives potential homebuyers a better idea of the project’s financial status and helps them make informed decisions. The financial details also help investors to understand the risks and rewards associated with investing in the real estate project.
In January, a total of 746 new housing projects were registered with MahaRERA. These projects covered 50,288 apartments with an estimated worth of Rs 22,449 crore. Developers were responsible for following regulations and updating project information. However, more than 563 project promoters were issued cancellation notices due to non-compliance.
In May, MahaRERA issued a 15-day show-cause notice to the non-compliant developers. They were given a chance to fix their mistakes. Unfortunately, only 183 developers responded in time. The remaining 563 developers are at risk of their project registration being cancelled.
A list shared by MahaRERA reveals that 563 developers have not complied with regulations, with the highest number of non-compliant developers being 124 in Pune district, followed by 98 in Nashik district, 71 in Thane district, 48 in Nagur district, and 38 in Mumbai, among others.
MahaRERA wants to be open and protect homebuyers. They are taking action to make sure developers give updates. If developers do not give updates, their project could be canceled. This could stop work on the project, stop people from buying or selling units, and stop new projects from starting.
Developers who fail to provide updates may face financial penalties, leading to a loss of trust from potential homebuyers and investors. Keeping stakeholders informed of project progress is crucial for making informed decisions, and any issues with a project could negatively impact trust in both the developer and the real estate market as a whole.
To make sure everything is fair and clear, MahaRERA watches how money is being used in registered projects. Developers have to give three certificates to MahaRERA and the bank before they can get money for the project. This makes sure that money is being used the right way.
Developers also have to keep information about their project up to date on the MahaRERA website. This includes information about things that might stop the project from happening the CERSAI details and information about who is in charge of the project. This helps people who want to buy a home to get good information about the project.
MahaRERA’s actions have sent a clear message to the real estate industry: compliance with the Real Estate Act’s regulations is not optional but an absolute necessity. As the market continues to evolve, transparency and accountability have become vital pillars of the real estate sector’s credibility.
Developers who prioritize updating project-related information regularly and providing accurate financial details can build trust with homebuyers and investors. Trust is a key factor in attracting potential buyers and investors, paving the way for long-term success in the competitive real estate landscape.
To summarize, MahaRERA’s notices to cancel recent registrations should make real estate developers in Maharashtra more aware. They must obey the Real Estate Act’s rules to avoid putting their projects’ registrations and market reputation at risk. In the real estate industry, transparency and accountability are essential for a prosperous and sustainable market. Adhering to regulatory requirements can help developers gain trust from homebuyers and investors, making their position stronger in the industry.
MahaRERA’s actions emphasize the significance of responsible and ethical practices in the real estate market. Following the law not only protects developers’ interests but also defends homebuyers’ rights, creating a peaceful and prosperous real estate landscape for all stakeholders.