MahaRERA launches statewide OC verification after Dombivli scam

This step follows the notorious Kalyan-Dombivli Municipal Corporation scam, in which multiple developers were involved in constructing 65 illegal buildings using fraudulent documents such as fake 7/12 extracts (also known as a Satbara Utara, a crucial land record document in Maharashtra), fabricated building plans, and forged RERA approvals

THANE: In a decisive response to the large-scale construction fraud uncovered in Dombivli, the Maharashtra Real Estate Regulatory Authority (MahaRERA), responsible for overseeing and ensuring transparency in the state’s real estate sector, has launched an extensive verification drive for Occupancy Certificates (OCs) pertaining to 3,699 housing projects with lapsed registration. Letters have been dispatched to all relevant Planning Authorities, instructing them to verify the authenticity of the OCs uploaded by developers on the MahaRERA website.

MahaRERA launches statewide OC verification after Dombivli scam

This step follows the notorious Kalyan-Dombivli Municipal Corporation scam, in which multiple developers were involved in constructing 65 illegal buildings using fraudulent documents such as fake 7/12 extracts (also known as a Satbara Utara, a crucial land record document in Maharashtra), fabricated building plans, and forged RERA approvals. The fraud, which began in 2019 and was exposed in 2022, led to the arrest of 15 individuals, including developers and agents. In November 2023, the Bombay high court ordered the demolition of these unauthorised buildings, affecting around 6,500 residents. Since then, KDMC has initiated the demolition of both occupied and unoccupied structures, leaving many unsuspecting homebuyers facing eviction.

Officials have outlined that Planning Authorities have been given 10 days to verify whether the OCs uploaded by developers were genuinely issued by them. If no response is received within this deadline, MahaRERA will consider the certificates as valid. However, any discrepancies discovered after the deadline will place full responsibility for any risks and liabilities on the concerned Planning Authority.

The KDMC scam exposed the vulnerability in the approval process, with fraudulent developers exploiting loopholes to secure approvals. Many residents had purchased homes under the assumption that proper documentation had been verified, only to later discover that the approvals were fraudulent. In the aftermath, KDMC has suspended one of its officials for negligence and pledged to implement stronger oversight measures to prevent such scams in the future.

Under MahaRERA regulations, all housing projects must be registered before any sales can commence. Developers are required to submit quarterly progress reports and financial audits throughout the construction phase. Upon completion, the OC must be uploaded to the MahaRERA portal and verified before developers can access funds from the project’s designated account.