MUMBAI: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has initiated action against developers of 8,212 housing projects for failing to submit mandatory quarterly progress reports (QPRs) within the stipulated deadline, tightening oversight over compliance in the state’s real estate sector.
This includes 4,644 projects from the Mumbai Metropolitan Region alone, of which 1,465 are in Thane and 1,263 in Mumbai Suburban.
Out of a total 33,029 registered housing projects across Maharashtra, these developers did not update their January-March quarter disclosures on MahaRERA’s portal by April 20, as required under the Real Estate (Regulation and Development) Act, 2016.
Taking serious note of the lapse, the regulator has issued show-cause notices to all defaulting entities under Section 7 of the Act.
Developers have been given 60 days to respond and update the pending filings. Failure to comply could trigger stringent regulatory action, including suspension or cancellation of project registration, freezing of project bank accounts, and restrictions on advertising and marketing. Authorities may also direct the Joint District Registrar to halt registration of sale and purchase transactions in such projects.
“If any developer does not update the quarterly progress report of their project despite repeated follow-ups, MahaRERA will not hesitate to cancel or keep such project’s registration in abeyance. MahaRERA is of the view that such an unpleasant situation must not arise at all,” said Manoj Saunik, Chairman, MahaRERA.
QPRs are a critical disclosure mechanism under RERA, aimed at ensuring transparency for both prospective buyers and existing homebuyers. Through Forms 1, 2 and 3, developers are required to provide detailed updates on construction progress, number of units and garages registered, funds received, expenditure incurred, and any changes to approved building plans. These filings must be certified by the project’s engineer, architect and chartered accountant.
The compliance framework also mandates that 70% of the funds collected from homebuyers be deposited in a dedicated project bank account, with withdrawals linked to certified construction progress. Even in cases where no withdrawals are made in a quarter, developers are required to disclose fund inflows and submit a self-certified statement on the MahaRERA portal.
Region-wise, Pune accounts for the highest number of defaulting projects at 1,957. The Mumbai Metropolitan Region (MMR), including the Konkan belt, has 4,644 such projects. Other regions include 451 projects in Nashik (Khandesh), 391 in Nagpur (Vidarbha), and 185 in Chhatrapati Sambhaji Nagar (Marathwada).
In addition to these provisions under the RERA Act, MahaRERA’s 2022 order reiterates the requirement for time-bound quarterly and annual disclosures in a prescribed format. These include updates on project status, approvals, inventory sold, and financial progress, information considered vital for safeguarding homebuyer interests.
Despite these clearly defined compliance requirements, over 8,000 projects failed to meet the latest reporting deadline, prompting regulatory intervention. MahaRERA said the action reflects the authority’s zero-tolerance approach towards non-compliance and its focus on ensuring transparency and accountability in the sector.
