A list recently released by Maharashtra Real Estate Regulatory Authority (MahaRERA) has revealed that a total of 1,716 real estate projects have been penalized from 1 August 2017 to February 2018, with the amount ranging anywhere between Rs 50,000 to rupees ten lakh for delaying their project registration. The Real Estate (Regulation and Development) Act, 2016 mandates builders to register their projects with the housing authority, as a means to ensure that, home buyers are aware of the details of the project.
While over 12,000 projects have been registered with MahaRERA, housing experts have said twice the number of aforementioned 1,716 fined projects are yet to be registered. Most of these unregistered projects are from the rural belts of the state. The list includes 410 projects that have paid a penalty of Rs 50,000 each while nearly more than 1,000 projects have paid a penalty of rupees one lakh each. Three projects have levied a penalty of rupees ten lakh each while the remainder has paid a fine between rupees two lakh to rupees ten lakh.
The last day for registration of ongoing projects was 31 July 2017. During a project registration, a developer must disclose all details related to the project i.e. land details, ongoing cases so as to bring transparency for the home buyer in the dealings.
“The authority under the act has the right to penalize a developer with up to 10% of the project cost for delayed registration. It is the prerogative of the authority to decide the penalty. Double the number of the projects penalized are still unregistered, which will be around 3,500,” said Ramesh Prabhu, housing expert and chairman of Maharashtra Societies and Welfare Association.
He further added, “The unregistered projects are from rural parts of the state, where still (sic) the seriousness of MahaRERA registration hasn’t been understood. Also, to register with MahaRERA one needs to have all the documents in place. Someone carrying out an illegal development how will he register the project, so such projects aren’t yet registered (sic).”
The figures are expected to rise in the coming days.