Introduction

The Maharashtra Real Estate Regulatory Authority (MahaRERA) operates under the framework of the Real Estate (Regulation and Development) Act, 2016 (RERA). Its primary objective is to enhance transparency, accountability, and consumer protection in Maharashtra’s real estate sector.

For promoters (developers), compliance is not optional. Proper and timely disclosures are mandatory at the time of project registration and throughout the project lifecycle.

This guide outlines the essential disclosure requirements that every promoter must follow.

1. Mandatory Project Registration

Before advertising, marketing, or selling any real estate project (where land area exceeds 500 sq. meters or more than 8 apartments are proposed), promoters must register the project with MahaRERA.

Registration requires submission of:

  • Project details (layout, specifications, amenities)
  • Land ownership documents
  • Development agreements (if applicable)
  • Approved plans and commencement certificate
  • Estimated project cost and timelines
  • Details of encumbrances (if any)

Without registration, promotion or sale is prohibited.

2. Financial Transparency & Separate Bank Account

Under RERA provisions:

  • 70% of the amounts realized from allottees must be deposited in a separate project account.
  • Funds must be used only for land and construction costs.
  • Withdrawals must be certified by an engineer, architect, and chartered accountant.
  • Annual audit of the project account is mandatory.

This ensures that funds collected for one project are not diverted elsewhere.

3. Ongoing Quarterly Updates

Promoters must provide quarterly updates on the MahaRERA portal, including:

  • Construction progress (with photographs)
  • Status of approvals
  • Number of units sold
  • Financial progress of the project

Failure to update information can lead to penalties and compliance notices.

4. Standardized Agreement for Sale

The Agreement for Sale must:

  • Follow the prescribed RERA format
  • Clearly define carpet area (not super built-up area)
  • Specify possession date
  • Include defect liability clause (5 years)
  • Outline cancellation and refund terms

This minimizes ambiguity and protects both parties.

5. Disclosure of Approvals & Clearances

Promoters must disclose:

  • Layout approvals
  • Fire NOC
  • Local authority permissions
  • Any pending litigations

Buyers are entitled to review all approvals before purchase.

6. Adherence to Declared Timeline

The possession timeline declared during registration is binding.
 If there is delay:

  • The promoter is liable to pay interest to allottees.

Extensions can only be granted under specific conditions (such as force majeure).

7. Defect Liability Responsibility

For five years from possession:

  • Promoters must rectify structural defects or workmanship issues without additional charges.

Rectification must be done within 30 days of notice.

8. Penalties for Non-Compliance

Non-compliance may result in:

  • Financial penalties (up to 10% of project cost)
  • Revocation of project registration
  • Possible imprisonment under severe violations

Conclusion

Compliance with MahaRERA is not merely a regulatory requirement, it is a credibility mechanism. Transparent disclosures, financial discipline, and timely reporting build buyer trust and reduce legal risk.

For promoters, proactive compliance is the most effective way to ensure smooth project execution and sustained brand reputation in Maharashtra’s regulated real estate ecosystem.