Good News for Homebuyers: MahaRERA reports a jump in developer compliance rate; project updates rise from 0.2% to 62%
MahaRERA update: The housing regulator stated that 62% of housing projects have updated information so far, up from just 0.02% in January 2023
In a positive development for homebuyers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) announced that the compliance rate among real estate developers has risen from 0.02% in January 2023 to 62%. Strict enforcement measures, including freezing the bank accounts of non-compliant projects, establishing a Compliance Cell, and suspending the MahaRERA registration numbers of developers, have played a key role in this improvement, according to a statement issued on February 17.
MahaRERA explained that compliance is measured by submitting quarterly progress reports (QPR).
"Currently, information on 62% of housing projects has been updated, as compared to 0.02% back in January 2023, when MahaRERA began reviewing these projects," it said in a statement.
"There are 18,012 active projects in Maharashtra, of which 11,080 regularly update their QPRs. This means that 62% of housing projects ensure their information is updated on MahaRERA’s website. In January 2023, when the compliance cell was established, only two out of 748 projects, or 0.02%, were compliant in updating their QPRs," the MahaRERA statement added.
The regulator said that the availability of updated information on MahaRERA’s website has helped significantly lower and control the number of complaints filed by homebuyers.
Are real estate developers legally bound to file quarterly project reports?
According to MahaRERA, the duties and responsibilities of developers are outlined in sections 3, 4, and 11 of the Real Estate (Regulation and Development) Act, 2016. In addition to these sections, MahaRERA also clarified the roles and responsibilities of developers regarding the declaration of quarterly project progress in July 2022.
"As per these provisions, the developers must ensure QPR is updated on MahaRERA’s portal every January 20, April 20, July 20 and October 20. The report must also include information on construction progress made, a financial breakdown of how many flats, parking slots have been booked, payment received, expenditure incurred, any amendment in the project’s plan, among others," the MahaRERA added in its statement.
MahaRERA initiated the Financial Quarter-Based Project Progress Reporting System in January 2023 by forming a separate compliance cell.
Through this compliance cell, MahaRERA introduced several measures, including hosting seminars and discussions and taking legal action against non-compliant projects. These actions included levying penalties, suspending MahaRERA registration numbers, halting flat sales, and freezing bank accounts. As a result, 62% of housing projects now update their information every quarter, according to MahaRERA.
MahaRERA has consistently emphasized that negligence or delays in updating quarterly reports will not be tolerated. With the increase in updated information on MahaRERA’s website, the strict approach is already yielding positive results.
Real estate projects registered in Maharashtra and number of complaints filed
Since its inception in May 2017, MahaRERA has registered 48,937 real estate projects across Maharashtra. According to the statistics available on the MahaRERA portal, developers of over 15,000 projects have declared that they have completed the units.
MahaRERA, on the other hand, has received more than 28,000 complaints against real estate projects in Maharashtra. MahaRERA has passed orders for more than 20,000 real estate projects so far, which means over 8,000 complaints have yet to be closed.