As per Clause 20 of the Maharashtra RERA Act, the information of registered project needs to be updated every quarter, primarily with regard to project completion and units sold. However, following their mandatory registration with the regulator, most of realty developers seem to have either forgotten or ignored the norm of updating project details every quarter. More than 65% of the MahaRERA-registered projects have not updated the information in the last three months, showed a study by Propstack, a real estate data analytics firm.
“We have issued notices to these developers who have not updated their project details. We have also issued a circular that this would be construed as non-compliance. Any complaint that proves that the project details have not been updated would lead to action against the builder,” Gautam Chatterjee, chairperson, MahaRERA, told ET.
Maharashtra, apart from Punjab and Madhya Pradesh, was one of the first states to notify its rules under the Act and establish MahaRERA after all sections of the Real Estate (Regulation & Development) Act, 2016, came into force on May 1. Of all the state regulators, Maha-RERA has been able to achieve the highest number of registrations of around 13,000 projects.
“We also observe that primarily small projects with carpet area of less than 50,000 sq ft are 66% of the projects that have not updated their details on RERA. This leads us to believe that maybe small developers are the ones who are not updating their projects on a quarterly basis,” said Sandeep Reddy, director of Propstack. While 65%, or 8,352, of Maha-RERA projects have last modified their details between May and October 2017, data for the remaining projects was last modified between November 2017 and January 2018.
Of these 8,352 projects, around 66% — projects spread over 50,000 sq ft — have not updated their details for the second consecutive quarter, which indicates that developers of smaller projects are defaulting on this count.
Following notification of all the rules under the Act and setting up of the regulator, builders were expected to register their new and ongoing projects with their respective state RERAs within three months ending July 31. However, with a penalty applicable, the deadline was extended later.