The Maharashtra Real Estate Regulatory Authority on Monday said it has issued show-cause notices to 313 big projects across the state, following an external auditor's report pointing to several shortcomings. The watchdog appointed a reputed audit firm as part of its mandate to look at projects at a micro level, and the notices have been sent to projects red-flagged by the firm, an official statement said. The shortcomings include total expenditure claimed to be incurred by a developer not reflecting on the ground, it said, pointing out that there are situations where a developer has claimed 75 per cent of the budgeted expenditure is done while the project is only 50 per cent complete.
Similarly, there are situations where the targeted date of completion is less than six months away, but the work is less than half complete, the statement said, adding that the audit took into account statutory progress reports filed with Maharera, ratings of a developer and data from bankruptcy courts. The Maharera statement said professionals having experience in banks and income tax's recovery wing have been asked to investigate by visiting such projects. If a developer does not cooperate, an investigator's report will be taken as final and action will be initiated, the statement warned. Among projects that have been issued the notices, suburban Mumbai accounts for the maximum number of projects at 109, followed by neighbouring Thane with 58, Pune at 56 and Mumbai City at 44, the statement said.