In India, as per the RERA Act, no housing project can be advertised, registered or sold without the MahaRERA registration number. Violating this provision of the law can result in strict action against developers. MahaRERA has recently taken penal action against 12 developers for advertising and selling housing projects without RERA registration. The regulatory authority has collected a fine of INR 5.85 lakh from these developers. The fine amount ranges from INR 10 thousand to INR 1.5 lakh, depending on the severity of the violation.
MahaRERA (Maharashtra Real Estate Regulatory Authority) registration is a mandatory requirement for real estate developers in India as per the Real Estate (Regulation and Development) Act, commonly known as RERA. This means that no housing project can be advertised, registered, or sold without obtaining the MahaRERA registration number.
MahaRERA has noticed that despite the strict laws, many developers are advertising and selling houses without RERA registration. The authority has issued show cause notices on its own (Suo Moto) to 54 such projects in the state. The developers were given seven days to present their case. Out of these 54 projects, MahaRERA has heard 15 projects and has penalised 12 of them. The developers who were penalised, have to pay the fine amount within 15 days, failing which they will be charged an additional INR 1k per day for delay. The fines levied on these developers have amounted to INR 5.85 lakh in total.
Among the 12 developers who have been prosecuted, five are from Nashik area, four from Aurangabad area, two from Pune and one from Mumbai. Eleven out of the 12 developers had a RERA registration number, but they had not printed it in the advertisement. While one was found to have printed the RERA number in small letters. A fine of INR 10 thousand has been imposed on this developer. Among the 11 developers who did not print the RERA number in the advertisement, one has been fined INR 1.5 lakh, seven developers have been fined INR 50,000 each and three developers have been fined INR 24,000 each.
The fine amount imposed depends on the severity of the violation and ranges from INR 10,000 to INR 1.5 lakh. MahaRERA has collected fines from developers who failed to comply with the MahaRERA registration requirement, and the penalty must be paid within a stipulated timeframe. Failure to pay the penalty may result in additional charges for delay and restrictions on availing services from MahaRERA.
It is important for developers to understand that MahaRERA takes the violation of the RERA Act very seriously. Any housing project exceeding 500 square metres or eight flats is mandatory to be registered with MahaRERA. Only after obtaining the registration number can the developers advertise, register and sell the houses in the project. It is the responsibility of the developers to ensure that they print the RERA registration number in the advertisement.
These penalties by MahaRERA are aimed at promoting compliance with the RERA Act and ensuring transparency and accountability in the real estate sector. Developers are required to adhere to the regulations set forth by the RERA Act, and MahaRERA registration is a crucial aspect of real estate advertising in Maharashtra to protect the interests of homebuyers and promote a fair and transparent real estate market.
Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.
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