The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken action against 41 unregistered plotted development projects in the state. The move comes in response to complaints from homebuyers about project delays in rural areas. During property checks, MahaRERA officials discovered that developers of many plotted areas had sold units without the mandatory MahaRERA registration or QR code, which is compulsory for projects above 500 sqm.
MahaRERA initiated suo motu action, issuing notices under section 3 of the RERA Act. This section states that no promoter can advertise, market, sell, or offer for sale any plot, apartment, or building without registering the project with MahaRERA.
Shirish Deshpande, Chairman of the Mumbai Grahak Panchayat, appreciated MahaRERA’s scrutiny, emphasizing the need for caution when investing in plotted projects, especially in rural areas. He noted that some developers advertise without registration, potentially taking advantage of consumers.
Developers often attract investors with non-agricultural (NA) plot projects, subdividing land into plots for sale without providing necessary infrastructure or registering with MahaRERA. While previously developers needed both commencement and occupancy certificates for RERA registration, MahaRERA made provisions to treat NA plot certificates as commencement certificates for plotted units.
Despite these changes, challenges persist for developers in rural areas. The acceptance of the NA certificate as a commencement certificate aims to expedite registration for real estate projects in rural areas.
In 2021, MahaRERA Chairman Ajoy Mehta took action against a developer, ordering them to stop advertising their projects and bookings for NA plots due to a lack of registration and required infrastructure provision.
This crackdown emphasizes MahaRERA’s commitment to regulating real estate development and protecting the interests of homebuyers across Maharashtra.