MahaRERA swoops in to stop illegal plot sales by developers

1 Feb 2024 , 02:12 AM

Promoters and developers that advertise and sell non-agricultural plots without registering the project with the Maharashtra Real Estate Regulatory Authority (MahaRERA) face a suo moto action. 41 of these developers around Maharashtra have received show cause notices from the regulator for marketing their projects without obtaining the required MahaRERA registration number, which the regulator has labelled as a major breach of MahaRERA requirements.

Subject to specific requirements, Section 3 of the Real Estate (Regulation and Development) Act, 2016 states that selling a plot, flat or building requires registration with MahaRERA. Plots, apartments, and buildings cannot be advertised for sale by project promoters outside from that.

‘A MahaRERA registration number must be obtained before selling plots, apartments, or constructions are advertised. Nevertheless, marketing and selling plots without getting MahaRERA’s registration number is illegal. This is to safeguard investors’ rights. According to Ajoy Mehta, head of MahaRERA, ‘MaharERA does not tolerate any irregularities in the real estate sector and this action of sending show cause notices is to protect the purchaser’s interest.’

Of the 41 projects in violation, the majority—21—come from the Pune region, 13 from the Konkan region, and 7 from the Nagpur region. A significant portion of the violations originate from areas that are semi-urban, located close to a city, or situated in a rural area. Nonetheless, there are very few sales of these plot-related ventures in urban areas.

Plotted project applications are subject to the same financial, legal, and technical review processes as residential building applications under MahaRERA.

The local planning authorities must provide the promoter the necessary and legally-mandated approvals. The ownership, plot size, total area, boundaries, and non-agricultural certificate (NA) are all reviewed by the local authorities.

The promoter or developer is in charge of the civic amenities, such as the water supply, internal roads, sewage, public spaces, common areas, etc., on the basis of which the local planning authority issues an occupancy certificate. MahaRERA does not provide a registration number in the absence of these requirements and very strict inspection.

The Real Estate (Regulation & Development) Act, 2016 stipulates that the promoters must abide by a set of rules when the project is registered with MahaRERA. These are intended to safeguard investors’ and homebuyers’ interests. 

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