Over 1,000 builders respond to MahaRERA show-cause notices
Publish on : 2023-03-08 20:04:12
While some developers have informed the regulatory body that they have already completed their projects, others have said they will renew their projects within a month.
PUNE: More than 1,000 of the 19,539 developers, who were told to show cause by MahaRERA in the past three months for failing to update their project-related details, have responded to the notices.
While some developers have informed the regulatory body that they have already completed their projects, others have said they will renew their projects within a month. The number will rise as there are many developers who are yet to respond, said a MahaRERA official.
Under section 11 of the RERA Act, it is mandatory for registered project developers to update the details every three months. Developers are required to submit project status, the financial position of the project, booking numbers, annual reports and other details. MahaRERA observed that although projects were being registered, the developers were not providing information on the project's status. Violation of section 11 of the act can lead to an imposition of a penalty of up to 30% of the total project cost on the developer.
MahaRERA officials said the objective of uploading project status details every three months is to keep interested homebuyers informed. This also helps build trust between buyers and developers.
MahaRERA officials said between 125 and 150 developers usually approach the regulatory body every month informing it about projects being completed. However, since the show-cause notices were issued, the compliance ratio has improved in January 2023. Developers of 700 real estate projects declared they had completed their projects - up from the average of 125-150 in the previous months. In the case of project completion deadlines, over 700 projects sought extension between December and January 2023, compared to a previous monthly average of 120.
While appreciating the initiative, chairman of the Maharashtra Societies Welfare Association (MahaSewa) Ramesh Prabhu said the authority should also penalise developers for not uploading the information on time. "If there is a default, then there should be a penalty too. That will ensure details are uploaded on time," he said.
State Credai president Sunil Furde told TOI that often the reasons for details not being uploaded are technical. "Many developers had completed and uploaded the information, but it was not reflected on the portal. However, after the show-cause notices were issued, developers have reverted with the details," he said.