MahaRERA has issued show-cause notices to 9,177 housing projects across Maharashtra and imposed penalties exceeding Rs 15 crore for failing to update their quarterly progress reports (QPRs). However, legal experts and housing activists are questioning the regulator's capacity to scrutinize developer disclosures and monitor compliance with the Real Estate (Regulation and Development) Act, 2016 (RERA).
Criticism of MahaRERA's Verification Mechanisms
Lawyers and activists argue that MahaRERA lacks the infrastructure and systematic processes to verify self-declarations, certificates, and disclosures submitted by promoters. They recommend random inspections, independent verification, and technology-driven monitoring, including artificial intelligence, to track project compliance. Currently, scrutiny is largely complaint-driven, with investigations often initiated only after homebuyers or stakeholders file grievances.
MahaRERA officials contend that verifying every submission is impractical given nearly 54,000 registered projects across the state. They emphasize that the regulator's primary focus is grievance redressal and providing relief to homebuyers. Officials noted that complaints are now being heard within 15 days to a month due to recent measures.
Document Verification and Compliance Gaps
Legal experts point out that while MahaRERA verifies certain documents at the project registration stage, there is little clarity on regular cross-verification of subsequent disclosures. MahaRERA began scrutinizing commencement certificates only after discovering forged documents used by developers in the Kalyan-Dombivli region. In a recent case, allottees of an ongoing Santacruz project found that project progress was last updated on the MahaRERA portal in 2024.
Shirish Deshpande, chairman of Mumbai Grahak Panchayat, highlighted that under RERA, once 51% of flats are booked, promoters must facilitate society formation and execute conveyance within three months of obtaining an Occupation Certificate. He questioned whether MahaRERA has penalized developers for non-compliance and how many actually execute conveyance on time. Deshpande stated, “Under the model agreement, promoters are bound to pay interest for delays, and why are such payments not initiated automatically once delays occur? MahaRERA must ensure, with the help of technology, that developers automatically pay the allottees interest for every month of delay. This will substantially reduce the load of complaints piling up in MahaRERA.”
Structural Weaknesses in Fund Protection
Advocate Nilesh Gala said recurring compliance failures expose a structural weakness in RERA's fund-protection framework. Under Section 4(2)(l)(D) of the Act, 70% of homebuyer collections must be deposited in a designated project account, withdrawable only against certifications from an architect, engineer, and chartered accountant regarding project progress. However, Gala noted that the chartered accountant's Form 3 certificate is based on promoter-provided records and is not independently cross-verified by the regulator. This creates potential for fund diversion without corresponding construction progress, exposing homebuyers and lenders to risk.
Referring to a Chembur project insolvency where homebuyers invested around Rs 800 crore, Gala said the case highlighted inadequate oversight. He suggested MahaRERA subject a sample of Form 3 certifications to independent counter-audits by empanelled chartered accountants. Additionally, the designated bank holding the escrow account should act as an active gatekeeper, releasing funds only after verifying certified completion percentages against engineer and architect reports, not solely on promoter instruction. Gala also recommended reconciling withdrawals with quarterly progress updates and triggering red flags when financial withdrawals do not match physical progress. Professionals issuing false certifications should face blacklisting and referral to their professional bodies.
Calls for Independent Verification and AI Monitoring
RTI activist Jeetendra Ghadge, who was denied information on discrepancies in Form 3 certificates, violations of designated bank account provisions, physical verification of project progress, and action against chartered accountants allegedly issuing false certifications, sought verification of developer disclosures.
Advocate Godfrey Pimenta, representing allottees in a Vakola project not updated on the MahaRERA portal since May 2024, said promoters are required under Section 11 of the Act and MahaRERA regulations to periodically upload architects' certificates, engineers' certificates, chartered accountants' certificates, construction progress reports, financial disclosures, and other project-related information. While welcoming MahaRERA's recent compliance drive against projects failing to submit QPRs, Pimenta said disclosure alone does not guarantee accuracy. He stated, “Homebuyers and stakeholders have no independent means of verifying whether information uploaded by promoters reflects the actual status of construction and financial progress on-site. As the sector regulator, MahaRERA should introduce a system of random inspections and verification of disclosures against physical project progress, while also using AI-based tools for monitoring.”
Defense by MahaRERA Officials
Advocate Avinash Pawar noted that MahaRERA compliances are just self-declarations by promoters, which cannot ensure compliance with agreements made with flat purchasers. Advocate Anil D’Souza said that, like other regulators, RERA imposes compliance obligations including quarterly, half-yearly, and annual reports and project progress disclosures. He added that stricter monitoring by the regulatory machinery may be necessary, while noting that compliance requirements and scrutiny of project registrations have become more stringent under the current MahaRERA administration.
Defending the authority, MahaRERA officials said its mandate is to regulate the sector and provide redressal to homebuyers rather than undertake continuous micro-level monitoring of projects. They maintained that MahaRERA neither has the wherewithal nor the mandate to carry out detailed, ongoing scrutiny of every real estate project in the state.
