MahaRERA Freezes Bank Accounts of 1,950 Stalled Real Estate Projects

Jan 10, 2025

In a decisive move, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has frozen the bank accounts of over 1,950 stalled or lapsed real estate projects across the state. This action is aimed at compelling developers to resume construction and fulfill their commitments to buyers. The decision addressed growing concerns over delayed and incomplete projects in the state.

MahaRERA’s action comes after a series of show-cause notices were issued in December 2024 to about 10,771 projects, mainly in the Mumbai Metropolitan Region. Though the developers were given 30 days to comply with statutory obligations, including the mandatory disclosure of project details on MahaRERA’s website, many of them failed to provide necessary updates or submit Form 4, which signifies project completion. As a result, over 10,773 projects were declared lapsed due to non-compliance.

Out of the projects that received notices, 3,517 projects submitted their Occupancy Certificates, and 524 applied for deadline extensions. However, the remaining non-compliant developers now face strict action, including possible registration suspensions. By freezing their bank accounts, the authority aims to prevent the misuse of funds and push developers to prioritize project completion.

MahaRERA’s action is in line with the objectives of the RERA Act, 2016, to bring in more transparency, accountability, and financial discipline in the real estate sector while restoring homebuyers’ trust.

Additional measures are being considered to improve transparency, such as mandatory regular updates on project progress and stricter penalties for non-compliance. MahaRERA Chairman Manoj Saunik emphasized the importance of timely project updates to keep homebuyers informed.

Though this crackdown primarily affects projects in the Mumbai Metropolitan Region, it also includes stalled developments in Pune, Nagpur, Nashik, and other cities across the state. Homebuyers are hopeful that this decisive action will accelerate project completion and provide relief to those affected by long-standing delays.

Source: Business Standard