PUNE: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has suspended registrations for 4,812 housing projects statewide since July, freezing their bank accounts because developers failed to update construction progress or request extensions despite multiple reminders.
The majority of suspended projects are in major urban areas, with Pune leading at 1,219 suspensions, followed by Thane (535), Raigad (465), Mumbai suburban (438), and Palghar (377).
These projects will now be barred from property transactions, and developers could face penalties up to ₹50,000 for non-compliance. This action follows a crackdown initiated in December when MahaRERA identified 10,773 projects lacking updated timelines.
“Many developers neither sought extensions nor provided completion updates. While some submitted revised timelines, others ignored requests entirely. Those who remained unresponsive have been suspended or had their projects put on hold, and a list has been published on our website,” officials stated.
MahaRERA has instructed the property registration department not to allow any sales or purchases in these projects until the developers submit updated timelines and project status.
Officials clarified that, although registrations have been suspended, complete deregistration is not possible as bookings may still exist. “It remains the developer’s responsibility tocomplete the project, but they cannot conduct new bookings or sign fresh agreements until compliance is met,” they said.
The authority is vested with the power to impose strict financial accountability on builders under the Real Estate Act. “Our main goal is transparency and safeguarding homebuyers’ interests. This initiative is aimed at ensuring buyers do not find themselves stuck due to stalled projects,” a senior MahaRERA official remarked.
MahaRERA has published a comprehensive list of the suspended projects on its website, labeling them as “in abeyance.” This designation implies that associated bank accounts are frozen, and promoters are prohibited from executing sale deeds or marketing until all compliance is restored. Homebuyers can easily access this list to inform their investment decisions.
Recent reviews by the regulator revealed significant non-compliance, with only three out of 92 projects updating required information in the past two months. However, following the recent enforcement action, the number of lapsed projects has decreased from over 10,000 to 4,812, indicating a change as some developers start responding.
Developer associations have advised their members to comply with regulations. “We have consistently urged developers to submit quarterly reports promptly and avoid lapses,” a representative stated. Officials confirmed that suspended projects can regain their registrations only after developers file necessary quarterly progress reports and update project information on the website.
“While the lists are beneficial, stronger warnings should be integrated into the system. If a buyer scans the RERA registration QR code, it should clearly indicate if the project is in abeyance. Otherwise, unsuspecting buyers might still invest booking amounts,” warned S. Balakrishnan, a prospective flat purchaser.
