Realtors Face a Minimum .₹ 1-Lakh Penalty for Delay
Fine applicable for requests received between August 3 to August 16
Mumbai: Developers in Maharashtra who missed two previous deadlines for registering their ongoing projects will have to pay at least ₹ 1 lakh as penalty for delaying applications.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to slap ₹ 1 lakh or an amount equivalent to the registration fee, whichever is higher, as the penalty for applications received between August 3 and August 16.
The project registration fee ranges from ₹ 50,000 to ₹ 10 lakh, depending on its size. The fine will be levied on all applications received in the MahaRERA office until 5 pm of August 16.
“Applications made for registration of ongoing projects after August 16 will be heard on case-to-case basis and the penalty will be decided by the authority. The builder then will have to explain why the application cannot be rejected,” a top MahaRERA official said.
As of the July 31 deadline, the regulator had received 10,852 applications for registration of ongoing projects across the state. For
applications received subsequently, until August 2, a fine of ₹ 50,000 was imposed.
“We have received 500 applications for registration of ongoing projects until August 2 and received additional 500 such applications after that,” said the official. “We have decided to keep the ongoing projects registration process open as this will lead to maximum projects getting registered and make more information available to homebuyers.”
Maharashtra was one of the first
states to notify rules and establish the MahaRERA after all sections of the Real Estate (Regulation & Development) Act, 2016, came into force on May 1.
Without registering ongoing projects, developers cannot market or sell them. Violating provisions of Section 3 that deals with registration, selling and marketing of new and ongoing projects will attract a penalty of up to 10% of the property’s estimated cost, as determined by the authority.