Maharashtra Real Estate Regulatory Authority (MahaRERA) has again issued show cause notices to 16,000 real estate developers who have not updated details of their projects on the regulator’s website and have failed to reply to a show cause issued earlier.
In January, the state regulator issued notices to 19,500 project developers for giving details on the status of their projects, but only a small portion of them have complied.
MahaRERA has given the promoters another 15 days in which to respond and comply or face action, which includes cancelling project registration and imposition of penalties.
In a notification issued to the promoters, the regulator warned that it was taking serious note of the apathy towards customers, who were buying the houses. An official at MahaRERA said that some of the promoters have provided incomplete information and their responses to the earlier show cause notice were not satisfactory.
Under RERA rules in the state, real estate developers have to update customers about the status of the projects every three months, while financial details have to be provided once a year. MahaRERA was established in 2017 and it has started reviewing projects that have been registered since then until March 2022.
According to various estimates, there are over 1,00,000 housing units worth several crores, stuck at various stages and waiting for completion in the Mumbai Metropolitan Region as the promoters have either run out of funds or are involved in litigations.
MahaRERA recently introduced the mandatory filing of status reports on the projects so that customers have reliable information about the housing projects in which they have invested.
“Home buyers and real estate investors should not be cheated. Their investment should be safe and protected. For that, a built-in discipline should be created in the real estate sector,” the state regulator said.