MahaRERA Cracks Down on Lapsed Housing Projects: 11,000 Developers at Risk of Suspension and Bank Freezes

 Maharashtra: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued show-cause notices to approximately 11,000 lapsed housing projects across the state, with most located in the Mumbai Metropolitan Region (MMR). The regulatory body is giving developers a 30-day window to either submit Occupation Certificates (OCs) with Form 4 or seek a project extension. Failure to comply will result in severe consequences, including suspension or cancellation of project registrations, freezing of related bank accounts, and restrictions on property sales.

Under the Real Estate (Regulation and Development) Act, 2016, developers are required to provide quarterly progress reports and obtain the necessary completion certificates. Non-compliance, especially with more than 10,700 projects now lapsed in Maharashtra, has led MahaRERA to tighten monitoring and take action, including the cancellation of registrations and freezing of bank accounts in non-compliant projects.

Developers have 30 days to respond, and if no action is taken, MahaRERA will enforce penalties, including project de-registration. These penalties directly impact buyers, leaving them in limbo with investments in incomplete projects. MahaRERA has also been focusing on micro-monitoring, ensuring that each project regularly updates progress to prevent future lapses.

This crackdown serves as a warning to developers to comply with RERA regulations, submit necessary documents, and avoid delays. MahaRERA’s move ensures greater accountability and aims to protect homebuyers from getting caught in incomplete developments. With stricter enforcement ahead, developers must act now to stay compliant and avoid harsh penalties, helping foster trust in Maharashtra’s real estate market.