In a bid to address concerns about fraudulent practices in the real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to initiate a detailed verification of Occupation Certificates (OCs) for lapsed real estate projects. The move comes after complaints surfaced regarding forged land records and fabricated documents being used to secure regulatory approvals.
MahaRERA had earlier served notices to developers of lapsed projects, seeking confirmation of their completion. So far, 3,699 developers have responded, claiming that their projects are finished. However, given the issues with fraudulent documents in the past, MahaRERA has now taken the step to verify the legitimacy of the OC submitted by these developers.
Verification Process: Ensuring Authenticity
An Occupation Certificate (OC) is a crucial document issued by the local municipal or planning authority, certifying that a building has been constructed according to approved plans and is safe for occupation. As part of its verification process, MahaRERA has sent project details to the relevant planning authorities, requesting them to confirm whether the OCs provided by developers are genuinely issued by the respective authorities.
Authorities have been given a deadline of 10 days to respond. If there is no response within the stipulated period, MahaRERA will assume the authenticity of the OCs and mark the projects as completed. However, the regulator has warned that any discrepancies found later will place the full risk and responsibility on the concerned planning authority.
A Step to Strengthen Regulatory Framework
The ongoing investigation comes after past incidents of fraudulent practices in the state, including a major real estate scam in the Kalyan-Dombivli region, where developers used forged documents to secure approvals. These illegal constructions have led to demolitions and the displacement of several residents.
In Maharashtra, registration with MahaRERA is mandatory for all housing projects, and developers are only allowed to sell homes once their projects are registered in compliance with the relevant regulations. Developers are required to submit quarterly progress reports and annual audit reports during construction, and the project can only be deemed completed after the OC is issued by the planning authority and uploaded to MahaRERA's portal.
Improving Transparency and Accountability
This move by MahaRERA is expected to strengthen the regulatory framework, enhancing the credibility of the real estate industry and fostering greater transparency. The verification of OCs will hold developers accountable and provide homebuyers with greater confidence in the legitimacy of their investments.
By addressing fraudulent activities and enforcing strict compliance with regulations, MahaRERA aims to ensure that the housing market in Maharashtra is fair, transparent, and secure for both developers and homebuyers.
Conclusion
MahaRERA's decision to verify OCs for lapsed projects represents a critical step in curbing fraud and promoting transparency within Maharashtra’s real estate sector. The initiative is expected to foster a more trustworthy environment, benefiting homeowners, developers, and the broader housing market.