The Maharashtra Real Estate Regulatory Authority (MahaRERA) is taking a significant step towards dealing with the problem of forged documents in the real estate sector. To begin limiting the problem, MahaRERA issued an order requiring planning authorities in Maharashtra to verify the validity of Occupation Certificates (OC) for lapsed real estate projects within 10 days. The order followed a number of complaints where the valid Occupation Certificates for registrations of real estate projects were alleged to have been forged which has an impact on the trust of homebuyers as well as transparency in the market.
In this article, we consider why MahaRERA's order has significance, the implications of that order, and the potential implications to the real estate sector in Maharashtra.
Understanding the Need for Verification
An Occupation Certificate (OC) is an important document in the property cycle. They are issued by local municipal or planning authorities, and they certify that a building was constructed according to approved plans, and it is now safe to occupy.
MahaRERA has received numerous complaints about developers using forged OCs to register their work. They do buyer safety and the reputation of the real estate sector a disservice. Developers using forged documents to obtain regulatory approvals in Kalyan-Dombivli area was a major real estate fraud case at the time of circulating forged OCs.
Also Read: HoABL Enters Mumbai’s Property Market with ₹2,500 Cr Projects
MahaRERA’s Directive to Planning Authorities
MahaRERA's recent directive serves as a robust mechanism to curb fraudulent practices. Here's how the process unfolds:
1. Mandated Verification
- Planning authorities are required to verify the authenticity of OCs for 3,699 lapsed projects listed on the MahaRERA website.
- Authorities must confirm whether the uploaded OCs were issued by them or not within 10 days.
2. Accountability and Timelines
-
- Failure to respond within the stipulated period will lead MahaRERA to assume that the OCs are genuine.
- If discrepancies are discovered later, the respective planning authority will be held accountable for the associated risks and costs.
3. Region-Wise Distribution of Lapsed Projects
-
- The 3,699 projects under scrutiny include:
- Mumbai Metropolitan Region: 1,819 projects
- Pune Region: 1,223 projects
- Nashik Region: 273 projects
- Chhatrapati Sambhajinagar Region: 132 projects
- Amravati Region: 84 projects
- Nagpur Region: 168 projects
- The 3,699 projects under scrutiny include:
Importance of MahaRERA’s Measures
1. Increased Openness
Buyer confidence in the regulatory framework is increased by MahaRERA's verification of OCs, which guarantees that only valid projects are marked as completed.
2. Fraud Prevention
Developers who might try to register projects using forged documents are discouraged by the directive.
3. Protection of Buyers
By preventing homebuyers from buying properties with phony or unreliable OCs, the risk of financial loss or legal issues is decreased.
4. Simplified Procedures
The 10-day period encourages planning authorities to act quickly, guaranteeing effectiveness and responsibility.
Compliance Guidelines for Developers
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), housing projects must adhere to stringent compliance norms:
- Registration: Developers must register their projects with MahaRERA before initiating any sales activities.
- Periodic Updates: Promoters are required to submit quarterly construction updates and annual audit reports.
- Completion Formalities: Upon project completion, the OC must be uploaded to the MahaRERA website.
- Fund Withdrawal: Developers can only withdraw remaining funds from the project account after MahaRERA approves the OC.
Failure to comply with these requirements could result in penalties, including project deregistration.
Also Read: Mumbai ITAT: Flat Received for Vacating Land Not Taxable
Challenges in Implementing the Directive
While MahaRERA’s initiative is a step in the right direction, certain challenges remain:
- Coordination Issues: Effective collaboration between MahaRERA and planning authorities is essential to avoid delays.
- Resource Constraints: Planning authorities may face difficulties managing the verification process due to limited manpower and resources.
- Stakeholder Resistance: Developers and planning authorities might need time to adapt to the new compliance framework.
Conclusion
MahaRERA’s directive to verify the authenticity of OCs for lapsed real estate projects reflects its commitment to fostering transparency, accountability, and buyer safety in Maharashtra’s real estate market. By enforcing strict compliance measures and holding planning authorities accountable, MahaRERA is setting a benchmark for regulatory excellence in the sector.
As the real estate industry evolves, proactive measures like these will play a pivotal role in addressing challenges, enhancing trust, and driving sustainable growth.
Follow AquireAcers Whatsapp Channel to Stay Updated With The Latest Real Estate News
_1745582793.webp)
Ans 1. An OC is a document issued by local municipal or planning authorities certifying that a building was constructed according to approved plans and is safe for occupancy.
Ans 2. The verification ensures that developers are not using forged OCs to register projects, which protects buyer interests and promotes transparency in the real estate sector.
Ans 3. Planning authorities are mandated to verify OCs within 10 days of the directive.
Ans 4. If authorities do not respond within the timeline, MahaRERA will assume that the OCs are genuine. However, any discrepancies discovered later will hold the authorities accountable.
Ans 5. A total of 3,699 lapsed projects across Maharashtra are being reviewed for OC authenticity.
Ans 6. The Mumbai Metropolitan Region tops the list with 1,819 projects, followed by the Pune Region with 1,223 projects.
Ans 7. Developers must register projects with MahaRERA, provide regular updates, upload the OC upon project completion, and adhere to fund withdrawal norms post-approval.