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Over 8,000 housing projects face action in Maharashtra after failing to file mandatory reports, as MahaRERA steps up enforcement to protect homebuyers and ensure transparency
The crackdown sends a strong signal to developers across Maharashtra: compliance with regulatory norms is no longer optional, and any lack of transparency in real estate dealings will attract serious consequences. (Representative Image)
In a sweeping enforcement drive, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued show cause notices to 8,212 housing projects across the state for failing to submit mandatory Quarterly Progress Reports (QPRs). The move signals a stricter regulatory approach aimed at safeguarding the interests of homebuyers and improving transparency in the real estate sector.
The action comes amid 33,029 registered housing projects currently under various stages of development in Maharashtra. Under the Real Estate (Regulation and Development) Act, 2016, developers are required to file detailed quarterly updates on the MahaRERA portal. These disclosures include sales data, financial inflows, construction progress, and any revisions in approved plans. However, the January-March quarter deadline, which ended on April 20, saw more than 8,000 projects fail to meet compliance norms.
Officials emphasised that the lapse goes beyond procedural oversight and directly impacts transparency. QPRs are a crucial mechanism that allows both prospective buyers and existing investors to monitor project timelines, assess financial health, and track execution progress.
Non-submission of such reports raises serious concerns about accountability and the credibility of these projects.
Developers Given 60-Day Window To Respond
Developers have now been granted 60 days to respond to the notices and update their filings. Authorities have made it clear that not complying within this window could result in penalties and regulatory action.
Consequences for continued non-compliance could include cancellation or suspension of project registrations, a fine of Rs 50,000, restrictions on marketing and sale activities, and even freezing of designated project bank accounts. In severe cases, authorities may also instruct sub-registrars to halt property registrations in such projects, effectively stopping transactions altogether.
Regional Breakdown Reveals Major Hotspots
Region-wise data shows that the highest number of violations has been reported in the Mumbai Metropolitan Region and the Konkan belt, accounting for 4,644 projects. The Pune region follows with 2,311 defaulting projects.
At the district level, Pune tops the list with 1,957 projects, followed by Thane (1465) and Mumbai Suburban (1,263). Nashik and Nagpur lead in the Khandesh and Vidarbha regions, respectively.
Mandatory Escrow Mechanism Under Scrutiny
A key pillar of the compliance framework is the requirement for developers to maintain a dedicated escrow account, where 70% of funds collected from buyers must be deposited.
These funds can only be used for project execution and withdrawals are permitted strictly after certification by engineers, architects, and chartered accountants, details that must be disclosed through QPRs.
Regulator Warns Of Tougher Action Ahead
Manoj Saunik stressed that transparency remains non-negotiable. He cautioned that continued disregard for disclosure norms would prompt decisive regulatory intervention, including suspension of registrations. He reiterated that homebuyers have the right to be fully informed about the status of their investments.
The crackdown sends a strong signal to developers across Maharashtra: compliance with regulatory norms is no longer optional, and any lack of transparency in real estate dealings will attract serious consequences.
Maharashtra, India, India
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