It is the obligation of the promoters at the time of registration of a Real Estate Project to provide the bank details of the separate bank account to be maintained in a schedule bank for the purpose of depositing 70% of the amount realized for the Real Estate Project from the allottees from time to time.
This bank account should be an exclusive one and no lien bank account and the amounts deposited and withdrawn from this bank account should be in compliance with Section 4 (2)(1)(d) of the act read with Rule 5 of the Rules and Regulation 3 of the Regulations. The promoters at the time of registration of a Real Estate Project in addition to providing the bank details of the separate bank account in the application for registration shall provide a declaration about the separate bank account for the Real Estate Project on the letterhead of the promoter in the manner as in Format A.
It has been observed that the same has been violated by as many as 1,781 developers. Tens of thousands of Crores of Rupees of the Real Estates Buyers and Purchasers is at stake in Real Estate Projects.
Unfortunately, the faith of the flat purchaser is shaken in view of the builder’s lobby openly flouting the laws of the land particularly laws related to MahaRERA specifically as regards the investment of funds in separate bank accounts.
According to MahaRERA only 20 percent of the 19,000 projects which were issued notices by the regulator over non-compliance two months back have complied, and it has now started issuing a second reminder to around 15,000 projects that remain non-compliant.
Currently, 21,500 projects are ongoing in the state. Between January 10 and February 10, MahaRERA has issued notices to 19,539 real estate projects in the state over various non-compliance relating to failure from uploading details like financial disclosures, CA certificates and architect certifications on its website.
Real estate developments worth Rs 1,13,023 Crore across a little over 5,700 projects have lapsed in Maharashtra. This translates to a total of 4,08,350 apartments in these lapsed projects of which 1,63,042 apartments have been booked, according to data from the Maharashtra Real Estate Regulatory Authority (MahaRERA).
According to MahaRERA, less than 10 percent of work has been done in 53 of the 261 projects, followed by 10-20 percent completion in 44 projects, 20-30 percent in 60 projects, and 104 projects where 30-40 percent of the work has been completed.
The MahaRERA statement further said there were 106 projects where 25 percent of the planned expenditure had been incurred, followed by 92 projects where 25-50 percent of the expenditure had been incurred, 47 projects where 50-75 percent had been spent, and 15 projects with 75-100 percent expenditure done. In one of these projects, despite spending more than 100 percent of the budget, the actual work completed is only about 20-30 percent.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) on March 17 said that it has issued show-cause notices to developers of 14 real estate projects for publishing advertisements without a MahaRERA registration number. These include five projects in Mumbai, three in Pune, two in Nagpur and one each from Nashik and Aurangabad. MahaRERA said if there is no compliance by developers despite their multiple notices, they will explore the option of imposing a penalty.
