The Court emphasized the necessity of a robust framework to ensure transparency and prevent fraudulent practices in the real estate sector. It directed the integration of local bodies with MahaRERA’s system for real-time verification of statutory documents to safeguard homebuyers.

1. Case Background

The petitioner, an architect, sought judicial intervention to address systemic issues in the Maharashtra real estate sector, focusing on the fraudulent registration of projects based on forged documents. He invoked Article 226 of the Constitution of India.

2. Petitioner’s Contentions

• The Real Estate (Regulation and Development) Act, 2016 (RERA Act) mandates transparency and accountability.
• Developers exploit regulatory gaps by submitting forged commencement and occupancy certificates.
• Sections 32 and 34 of the RERA Act empower MahaRERA to devise mechanisms to verify developers' documents.

3. Respondents’ Position

• MahaRERA revoked multiple fraudulent project registrations under Section 7 of the RERA Act.
• A centralized digital platform is under development to enable inter-agency verification of statutory approvals.
• Steps are being taken to align local bodies’ systems with MahaRERA for seamless integration and compliance.

4. Legislative Context and Acts Discussed

Relevant Provisions of the RERA Act:

• Section 3, 4, 5: Registration prerequisites for real estate projects.
• Section 7: Revocation of registration for fraudulent practices.
• Section 34: Powers of MahaRERA to ensure document verification and compliance.
• Section 35: Authority to call for information and conduct inquiries.

Maharashtra Municipal Corporation Act, 1949: Sections 260 and 268 empower enforcement actions against unauthorized constructions.

5. Issues Identified

• Absence of a robust document verification mechanism.
• Unauthorized constructions in various villages.
• Lack of inter-departmental coordination leading to exploitation by developers.

6. Court's Observations and Ratio Decidendi

• Verified commencement and occupancy certificates are integral to project registration.
• Real-time integration between MahaRERA and local authorities is essential for fraud prevention.
• The court cannot entertain speculative inquiries into all registrations without prima facie evidence.

Ratio: The court held that statutory and administrative measures under the RERA Act provide sufficient remedies to address fraudulent practices. Integration of digital systems and proactive verifications are necessary to achieve transparency.

Directions Issued by the Court

1. Implementation of GR Dated 23rd February 2023: All municipal bodies to display statutory certificates online.
2. Integration Deadline: Websites of local bodies must integrate with MahaRERA’s system within three months.
3. Document Verification: Only verified projects should be registered.
4. Demolition of Illegal Structures: Strict compliance with the Maharashtra Municipal Corporation Act.

Subjects:

#RERA #FraudPrevention #RealEstateLaw #MahaRERA #Transparency #DigitalIntegration