Maharashtra RERA Cracks Down on Unregistered Projects and Delays

MahaRERA has intensified its enforcement efforts to ensure compliance with the Real Estate (Regulation and Development) Act 2016 (RERA Act 2016), particularly concerning mandatory project registration and timely possession.

Mandatory RERA Registration

MahaRERA has emphasised that a real estate developer is legally prohibited from marketing, advertising, selling, or offering for sale any plot, apartment, or building in a real estate project without prior registration with the Authority. This directive is a cornerstone of the RERA Act 2016, designed to enhance transparency and protect consumer interests in the real estate sector.

• Legal Mandate: Section 3(1) of the RERA Act 2016 explicitly states that no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of the project, without registering the real estate project with the Real Estate Regulatory Authority established under this Act.
• Consequences of Non-Compliance: Unregistered projects leave homebuyers vulnerable, as they lack the statutory protections and grievance redressal mechanisms provided by RERA. Developers found in violation face stringent penalties, which may include monetary fines and potential imprisonment under the provisions of the RERA Act 2016.

Timely Possession and Compensation

Another critical area of focus for MahaRERA is the issue of delayed possession. The Authority has consistently ruled in favour of homebuyers whose projects have been deferred beyond the RERA-mandated or agreed-upon timelines. Developers are held accountable for such delays.

• Homebuyer Rights: Under Section 18 of the RERA Act 2016, if a promoter fails to complete or is unable to give possession of an apartment, plot, or building in accordance with the terms of the agreement for sale or due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the allottees to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation.
• Remedies for Delay: Aggrieved homebuyers can file complaints with MahaRERA, seeking full refunds with interest or compensation for the delay, as specified under the RERA Act 2016. The Authority's orders aim to ensure that developers adhere to their commitments and that homebuyers are not unduly penalised for construction delays.