Positive progress for Homebuyers: Compliance Rate amid Realtors surges 0.02% to 62%

The Maharashtra Real Estate Regulatory Authority (MahaRERA) said that the compliance rate among real estate developers has increased from 0.02% in January 2023 to 62%, which is good news for homebuyers. According to a statement released on February 17, strict enforcement actions, including as blocking the bank accounts of non-compliant projects, creating a Compliance Cell, and suspending developers' MahaRERA registration numbers, have been crucial in this improvement.

According to the regulator, the number of complaints made by homebuyers has been much reduced and controlled because to the availability of up-to-date information on MahaRERA's website.

Sections 3, 4, and 11 of the Real Estate (Regulation and Development) Act, 2016 specify the obligations and liabilities of developers, according to MahaRERA. Along with these parts, MahaRERA also provided clarification on the duties and obligations of developers with reference to the July 2022 announcement of quarterly project progress.

By creating a distinct compliance cell, MahaRERA launched the Financial Quarter-Based Project Progress Reporting System in January 2023.

MahaRERA implemented a number of initiatives through this compliance department, such as holding talks and seminars and pursuing legal action against projects that were not in compliance. These measures included blocking bank accounts, stopping the sale of apartments, suspending MahaRERA registration numbers, and imposing fines. Consequently, according to MahaRERA, 62% of housing projects now update their data on a quarterly basis.

MahaRERA has made it clear time and again that carelessness or tardiness in updating quarterly reports will not be accepted. The stringent approach is already paying off, as seen by the rise in updated information on MahaRERA's website.

“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. 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”, MahaRERA added in a statement.

"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”, it added.