MahaRERA’s interpretation of Section 18 of the RERA Act stipulates that there must be a violation at the time of filing the complaint. For instance, Girish Bhoite purchased a property from Paranjpe Schemes Construction Limited in Pune. The agreement, for the property valued at Rs 50 lakhs, was signed in June 2015, and possession was anticipated by March 2019, as per the order copy.

The homebuyer acquired possession in May 2022 and subsequently lodged a complaint with MahaRERA, seeking interest and compensation for the delayed possession. The developer argued that as the complaint was filed after the homebuyer took possession of the apartment, it is not maintainable. The developer claimed that the delay was due to environmental clearance and later, exacerbated by Covid-19.

Additionally, the developer mentioned obtaining the occupation certificate for the project in April 2021 and despite informing the homebuyer, the possession was delayed until May 2022. To ensure fairness, the developer compensated the homebuyer by charging GST at a reduced rate and offered to waive off one year’s maintenance charges for the apartment.

Upon reviewing arguments from both parties, MahaRERA concluded that interest or compensation for delayed possession only applies if the promoter fails to complete the project or provide possession as per the specified date in the sale agreement. MahaRERA noted that the complaint was filed after actual possession, making relief under Section 18 of the RERA Act unattainable.

The Tribunal’s perspective, in a 2021 order, stated that if possession is handed over after the specified date, Section 18 of the RERA Act can be used to grant relief to homebuyers. The Tribunal criticized MahaRERA for its view, stating that accepting it could have significant consequences for the real estate sector.

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The Real Estate (Regulation & Development) Act, 2016, Makes It Mandatory To Have A Single Bank Account For The Project Under One Registration Number. This Is Aimed At Proper Completion Of The Registered Housing Projects Without Any Diversion Of Funds.
Taking Cognizance Of These Irregularities, The Regulator Has So Far Issued Show-Cause Notices To 45 Such Projects And Is In The Process Of Sending The Notices To Remaining Projects.
In Order To Avoid Occurrence Of Such Irregularities In The Future, The Regulator Has Made Changes To Its Systems. The Updated System Will Block Any Attempt To Link The Designated Account Of One Project With The Bank Account Of Another Project.
Apart From This, The New System Will Also Not Allow The Developer To Change The Mutual Account. The MahaRera Has Issued A New Order Making Prior Approvals For This Change Mandatory.
As A Regulator MahaRera, Has Initiated These Measures To Bring In Financial Discipline And Transparency In The Real Estate Sector To Ensure Homebuyers’ Investment And Interests Are Protected, And, Also Help Improve The Credibility Of The Sector.
As Per The Real Estate Act, The Developer Is Required To Maintain Only One Bank Account With One Rera Registration Number. The Funds Received in The Respective Project Needs to Be Maintained in This Account and Used for The Work of That Project Only. It Is Not Allowed To Be Used For Any Other Project Or Purpose As Such A Diversion May Have An Adverse Effect On The Project.
The Developer Is Also Required To Maintain 70% Of The Money Received From The Registration Of That Project In This Account. The Developer Cannot Withdraw Money From This Account In An Arbitrary Manner.
While Working On The Project, Withdrawal From This Account At Each Stage Is Not Allowed Without Certification With Regards To Construction Update And Required Funds.
The Regulator Has Highlighted This Irregularity By Studying The Information Submitted By The Developers Themselves To MahaRera. Through The Show-Cause Notices, It Has Directed Such Developers to Submit All the Details of the Total Number of Flats in Each Project, The Bookings, Funds Received, Withdrawals from The Bank Along with The Evidence. The Regulator Regulator Will Take Appropriate Action After Examining This Information.
Last Week, MahaRera Red-Flagged 313 Projects For Discrepancies In Their Expenditures And Actual Project Completion Status And Started A More Thorough Inspection. The Regulator Has Appointed a Financial Audit Firm to Scrutinize Projects. It Has Already Issued Show-Cause Notices To All These 313 Projects And They Are Currently Under Scrutiny.

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