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MahaRERA: Only 30 per cent of project constructed but funds over
Updated On: 31 March, 2023 05:56 AM IST | Mumbai | Sanjeev Shivadekar
MahaRERA issues show-cause notice to developer; 261 projects’ builders asked how they will meet Dec deadline for handing over possession
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A worker stands on the roof of an under-construction building at Nehru Nagar, Kurla on Thursday. Representation Pic/Shadab Khan
MahaRERA has come across a project whose developer allegedly utilised 100 per cent of funds but merely completed 20 to 30 per cent of the construction work. “We have issued a show-cause notice to the erring developer,” mentioned a release issued by MahaRERA. The case came to fore after MahaRERA Chairman Ajoy Mehta asked officials to scrutinise projects listed with the authority. According to Section 11 of the Real Estate (Regulation and Development) Act, it is mandatory for a registered developer to upload details of a project every three months, and a violation could attract a penalty of up to 30 per cent of the project cost.
Also, it is binding on the developer to ensure at least 70 per cent of the money paid by the buyer and investor is maintained in a separate account and used only for construction and land charges by the builder. While scrutinising several projects, the authority noticed that a developer had used 100 per cent of funds despite the project not even crossing 30 per cent of actual construction on the ground.
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