In the real estate sector, compliance with regulatory requirements is not just a legal formality but also a necessity to build trust with buyers and financial institutions. One such critical concept under the Maharashtra Real Estate Regulatory Authority (MahaRERA) is Project Abeyance. Let’s understand what it means, why it is important, and how non-compliance can impact ongoing projects.
What Compliance Means:
Compliance refers to adhering to the established rules, regulations, and guidelines set forth by governing authorities like the Maharashtra Real Estate Regulatory Authority (MahaRERA). For real estate projects.
Why is Compliance Important?
As per MahaRERA guidelines, every promoter must register and comply with the requirements if their project:
Covers a plot area of 500 square meters or more, or
Consists of 8 or more units.
These rules ensure transparency, protect homebuyers’ interests, and maintain accountability within the real estate sector.
What is Project Abeyance?
Project Abeyance refers to the status given to a real estate project when it fails to meet mandatory MahaRERA compliance requirements. Once a project is placed under abeyance, it is essentially marked as inactive on the MahaRERA portal until the promoter fulfils the necessary obligations.
Consequences of Non-Compliance:
If a promoter fails to comply, the project may be placed under abeyance, leading to serious consequences such as:
???? Bank accounts are frozen
???? No new Agreements for Sale can be executed
???? Loans and payments are stuck
⛔ Construction work comes to a standstill
Why Does Abeyance Happen?
A project may be placed under abeyance in the following situations:
⚠️ Pending QPRs (Quarterly Progress Reports) aren’t filed
⏳ The project’s completion date has expired
???? A Show Cause Notice has been issued by MahaRERA
How to Resolve Project Abeyance:
Promoters can bring their project back to active status by:
Why Promoters Should Care:
For a promoter, maintaining an active project status is essential not just for legal compliance but also for business growth. Non-compliance not only halts financial transactions but also damages reputation in the market—a setback that is often hard to recover from.
But beyond compliance, there is something even more important—trust. Protecting your project from going under abeyance is not only about meeting MahaRERA’s requirements, but also about honouring the faith your homebuyers place in you. They have not only purchased a home but also invested their hopes, dreams, and happiness in it. Ensuring compliance is, therefore, ensuring that happiness remains safe and secure.
Final Thoughts:
Project Abeyance under MahaRERA is a strict reminder for promoters to adhere to all regulatory requirements. By ensuring compliance, promoters safeguard their projects, maintain buyer confidence, and secure smooth financial operations. More than just a legal duty, compliance is a promise—a promise of trust, security, and happiness for every homebuyer.
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