In a remarkable turnaround for Maharashtra’s real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has witnessed an unprecedented surge in compliance among developers. The percentage of active housing projects updating their details on the MahaRERA portal has leaped from a negligible 0.02% in January 2023 to an impressive 62% today.
Stringent Measures Driving Transparency
This dramatic improvement in compliance is largely attributed to MahaRERA's firm regulatory actions. To curb non-compliance, the authority has implemented stringent measures, including the freezing of bank accounts linked to non-compliant projects and the suspension of registration numbers. These decisive steps, combined with persistent follow-ups and comprehensive awareness drives, have compelled developers to submit their Quarterly Progress Reports (QPR) regularly.
A Snapshot of the Numbers
- Active Projects: Maharashtra now has 18,012 active housing projects.
- QPR Compliance: Out of these, 11,080 projects are currently updating their QPRs as mandated.
- January 2023 Compliance: At the beginning of last year, only 2 out of 748 projects (0.02%) were compliant.
Such a steep rise in compliance not only enhances transparency but has also contributed to a notable decline in homebuyer complaints, reinforcing confidence in the regulatory framework.
Regulatory Framework and Reporting Obligations
Developers are legally bound to update their QPRs on the MahaRERA portal by January 20, April 20, July 20, and October 20 each year. These reports are comprehensive, including:
- Form 1 and Form 2: Detailed construction progress updates.
- Form 3: Financial updates such as booked flats, payments received, incurred expenditures, and any modifications to project plans.
These obligations are outlined under Sections 3, 4, and 11 of the Real Estate (Regulation and Development) Act, 2016, with further clarity provided by a court order dated July 5, 2022.
The Role of the Compliance Cell
MahaRERA’s dedicated Compliance Cell, established alongside the launch of the ‘Financial Quarter-Based Project Progress Reporting System’ in January last year, has been instrumental in this success. The cell has actively engaged in:
- Organizing seminars and discussions to educate developers.
- Enforcing compliance through legal actions, including penalties and suspension of flat sales.
- Freezing bank accounts to deter non-compliance.
These initiatives have significantly increased the regularity and accuracy of project updates, thereby ensuring that homebuyers have access to reliable and current information.
Implications for the Real Estate Sector
The surge in compliance rates to 62% is a testament to MahaRERA's commitment to fostering transparency and accountability within the sector. By mandating regular and detailed updates, MahaRERA is not only ensuring that developers adhere to their reporting obligations but is also paving the way for a more efficient and reliable real estate market in Maharashtra. Homebuyers now benefit from enhanced visibility into project progress, reducing the uncertainty often associated with property investments.
As MahaRERA continues to enforce these measures, the positive impact on the overall trust and integrity of Maharashtra’s real estate landscape is set to grow, encouraging a more robust and transparent market for all stakeholders.