If you are planning to buy a new house, this news is crucial for you. Many homebuyers purchase properties with large loans only to later discover that the project itself is illegal. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has launched an investigation into all lapsed housing projects and issued show-cause notices to around 11,000 developers, most of whom are based in the Mumbai Metropolitan Region (MMR). MahaRERA has warned that if developers fail to respond within 30 days, project registrations may be suspended or cancelled.
Developers who have not shared updates regarding the status of their projects, particularly after the declared completion date, are under scrutiny. Taking serious note of this irregularity, MahaRERA has issued show-cause notices to 10,773 such projects.
According to MahaRERA’s statement, these projects have been registered since May 2017. If developers fail to provide a response within 30 days, MahaRERA may take the following actions:
Suspend or cancel project registrations.Ban the sale of flats in these projects.Freeze bank accounts linked to the projects.Region-Wise Breakdown of Lapsed Projects
Out of the 10,773 lapsed projects:
Mumbai Metropolitan Region (MMR) has the highest number with 5,231 projects.Pune Division follows with 3,406 projects.Nashik: 815 projectsNagpur: 548 projectsSambhaji Nagar: 511 projectsAmravati: 201 projectsDadra and Nagar Haveli: 43 projectsDaman and Diu: 18 projects
MahaRERA’s Action Plan
Developers of lapsed projects are required to either:
Submit an Occupancy Certificate (OC) with Form 4.
Apply for an extension of the project with supporting documents.
MahaRERA has initiated strict measures, including suspending or cancelling registrations, freezing bank accounts, and instructing district registrars not to allow the sale or purchase of flats in these projects.
Under Section 11(1)(b), (c), (d), and (e) of the Real Estate (Regulation and Development) Act, 2016, it is mandatory for developers to upload quarterly progress reports and project status updates on the MahaRERA website. In cases where projects remain incomplete, developers must seek an extension or formally apply for cancellation of registration.
MahaRERA has set up a compliance cell to ensure meticulous monitoring of the real estate sector. Developers must regularly update their project’s quarterly progress reports on the official MahaRERA website.
MahaRERA Chairman Manoj Saunik stated that 10,773 real estate projects have lapsed across Maharashtra, putting many homebuyers’ investments at risk. As per regulations, developers must submit the required Occupancy Certificate (OC) along with Form 4 or extend the project’s deadline to ensure compliance.