MahaRERA Suspends 1,950 Projects, Freezes Bank Accounts Amid Compliance Crackdown

Mumbai: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has intensified its regulatory actions by suspending 1,950 housing projects across the state due to non-compliance with statutory updates. In a sweeping move to enforce transparency and accountability, MahaRERA froze the bank accounts of these projects, restricting all project-related financial transactions.

Last month, MahaRERA issued show cause notices to a staggering 10,773 real estate projects that failed to update mandatory project status information even after surpassing their registered completion dates. Developers were granted a 30-day window to comply.

Positive Response from Developers Out of the total notified projects, 5,324 developers submitted satisfactory responses. Among them, 3,517 projects provided the necessary Occupancy Certificates (OC), confirming project readiness for possession. Additionally, 524 developers sought extensions for their project deadlines, adhering to the guidelines for compliance. Currently, 1,283 responses are undergoing detailed scrutiny.

Major Non-Compliance Leads to Suspensions However, 1,950 projects faced suspension for failing to respond or provide the required updates. As a consequence, their financial operations, including bank account transactions, have been halted. Among these, Pune recorded the highest number of suspensions at 487 projects, followed by Raigad with 240 and Thane with 204. Mumbai city saw 51 projects affected, while its suburban areas accounted for 111.

MahaRERA officials highlighted that stringent measures are critical to safeguarding the interests of homebuyers, many of whom have invested substantial amounts in projects with indefinite completion timelines. “MahaRERA recognizes the gravity of non-compliance and has initiated necessary action to enforce transparency and protect stakeholders,” said Manoj Saunik, Chairman of MahaRERA.

Geographical Spread of Affected Projects

• Mumbai Metropolitan Region (MMR): The majority of suspended projects are concentrated in this key real estate hub, which includes Mumbai, Thane, and Navi Mumbai.
• Pune: Known for its rapid urban development, several projects in Pune are also affected.
• Nagpur and Nashik: Emerging real estate markets in these cities have seen a moderate impact.
• Other Cities: Various smaller cities across Maharashtra are also included in the suspension list.

Find Suspended Projects Details

For a comprehensive list of suspended projects, visit the official website: MahaRERA Suspended Projects.

Legal Framework and Penalties Under the Real Estate (Regulation and Development) Act, 2016 (RERA), developers are obligated to submit quarterly and annual progress reports, updating project milestones and financial status on the MahaRERA portal. Failure to comply with these regulations can lead to severe repercussions, including de-registration, hefty fines, and restrictions on the sale or purchase of properties linked to the non-compliant projects.

In a significant development, MahaRERA also reviewed cases where initial suspension orders were imposed. Following due examination, suspension orders for 45 projects were revoked, indicating that a fair review mechanism remains in place.

Future Implications The latest enforcement drive sends a clear message to developers about the importance of regulatory compliance. Industry analysts believe that proactive measures like these will enhance consumer confidence and encourage more responsible practices within the real estate sector.

This regulatory action highlights MahaRERA’s commitment to fostering a more transparent and secure real estate market in Maharashtra. While the suspensions may cause temporary disruptions, they aim to create a more accountable environment for both developers and homebuyers.