Mumbai: Only 3,500 developers of around 19,500 have responded to show-cause notices sent by the Maharashtra Real Estate Regulatory Authority (MahaRERA) in January asking them to update project information, showing how seriously the regulator is taken by the industry.
As a result, the MahaRERA has sent another round of notices to the errant builders, asking them to do the needful.
It is mandatory to update project-related information every quarter on MahaRERA’s website. The regulator has also sought some clarifications. However, a substantial number of developers have not been doing the needful.
Second round of showcase notices sent
Accordingly, the MahaRERA had sent show-cause notices to the promoters of around 19,500 projects in January this year, asking them to clarify within 30 days. Since not all of them have acted on MahaRERA’s legal reminder, a second round of show-cause notices have been issued through email, with a fortnight’s time being given to take corrective measures.
“After scrutiny, it was observed that 16,000 promoters have not given the expected response or the response given is unsatisfactory. Therefore, another notice has been sent to them. MahaRERA has clarified in the notice that this will be the last chance for promoters who do not respond to this notice. In this second notice, MahaRERA has also clarified that it will take serious note of the indifference towards the customers if the promoters do not respond and it will initiate further action as per the RERA laws,” said an official from the regulatory office.
MahaRERA's showcause notices part of 'close monitoring system'
The action is part of the ‘close monitoring system’ that the regulator has initiated, to review projects registered from its inception in May 2017 to March 2022.
However, when the MahaRERA official was asked for the list of around 16,500 defaulting promoters to protect homebuyers, they refused to divulge the names, in the interests of the developers, while stating, “homebuyers and real estate investors should not be cheated”.
