Mumbai: RERA fines 1,716 projects, raises Rs 18 crore in revenue
Since its inception, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has penalised developers of 1,716 projects, with amounts ranging between Rs 50,000 and Rs 10 lakh, for delay in registering with the authority
The authority can fine developers 10 per cent of the total project cost if they delay in registering their ongoing projects. Representational Picture
Since its inception, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has penalised developers of 1,716 projects, with amounts ranging between Rs 50,000 and Rs 10 lakh, for delay in registering with the authority. This has helped it to earn over Rs 18 crore revenue only through fines. As per the RERA Act, it's compulsory to register ongoing projects with the authority within 90 days, failing to which it restricts the sale of ready houses.
The authority came into existence on May 1 last year and has registered over 13,000 projects across the state. There are over 10,000 brokers registered with it, as mandated by the RERA Act.
The regular fee charged to developers is Rs 10 per sqm, with Rs 10 lakh being the maximum amount charged as registration fee. Brokers, on the other hand, have to shell out Rs 10,000 for registering with RERA. While those delaying in registration were charged between Rs 50,000 and Rs 10 lakh as penalty, the authority can also fine developers 10% of the total project cost.
All's not fine
The ongoing projects defaulting on the registration process were brought under the authority's purview during the nearly two-month extension that was given to developers after the 90-day deadline had ended. Developers had requested the authority to be lenient at the start, and hence, the amount charged in the beginning was Rs 50,000.
RERA has released a statement giving the list of projects for which developers were fined. The statement showed 1,046 projects that had delayed in registering and were fined Rs 1 lakh, and 410 projects wherein developers had to pay Rs 50,000, the minimum penalty for those who came forward for registration during the first extension given in August. Three developers were penalised Rs 10 lakh. None of the three projects are in Mumbai though. Officials said the revenue collected would be used for strengthening the authority's administrative works.
Developers' due diligence
A senior official from the authority said, "The details have already been put up on the official website. If a developer had three projects and he failed to register those, he was penalised three times the amount."
MahaRERA chief Gautam Chatterjee told mid-day to get in touch with the authority's secretary, Vasant Prabhu. However, despite several attempts, Prabhu remained unavailable for comment. Dr Vijay Sathbir Singh, a RERA official, said, "The list online will be updated periodically, as we keep receiving complaints about developers defaulting on registration... It is important for everyone to register with RERA, to avoid their name being put up online."
DISCLAIMER: mid-day and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.
IT Department slaps Rs.750 crore fine on Asaram and son