MahaRERA Imposes Rs 50-L Penalty On Unregistered Project In Goregaon West

MahaRERA Imposes Rs 50-L Penalty On Unregistered Project In Goregaon West

MahaRERA Imposes Rs 50-L Penalty On Unregistered Project In Goregaon West
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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has been taking strict action against unregistered projects across the state. However, for the first time, the authority has slapped the highest-ever penalty on an unregistered project – Rs 50 lakh. So far, the authority had levied penalty ranging between Rs 50,000 and Rs 10 lakh.

The developer facing the wrath of the MahaRERA is Prathamesh Land Developers, a part of Sethia Infrastructure Group. The developer failed to register two wings of its upcoming project Sethia Sea View in Goregaon West.

The complaint against the builder was filed by one of the homebuyers who had booked a flat in one of the two unregistered wings. The developer had not received an Occupancy Certificate (OC) for Wing A and B before May 1, 2017, violating Section 3 of the Real Estate (Regulation & Development) Act, 2016.

Section 3 of the real estate law prohibits a developer from selling any part of a project which is unregistered with the respective state RERA. The developer under Section 59 of the same law will be liable to pay a penalty extending up to 10 per cent of the project cost or an amount the RERA decides upon.

However, the developer challenged the complaint saying that the two towers were completed before April 2017, however, the OC was delayed due to land dispute. The developer had again applied for an OC, which the Maharashtra Housing and Area Development Authority (MHADA) was entitled to issue, in November this year. The developer also said the apartments in the project were sold out even before the real estate law came into force.

In April this year, according to a list revealed by the authority, three projects were fined with a penalty of Rs10 lakh, whereas over 1,000 projects were levied a fine of Rs 1 lakh and over 409 projects are penalised for Rs 50,000.

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