Maharashtra Government Stops Registration of Documents for Unauthorised Buildings to Protect Homebuyers

By The Realty Times | Real Estate News Services

Mumbai : The Maharashtra government has ordered a halt to the registration of sale agreements and other property documents relating to unauthorised buildings and flats that violate approved construction plans. The move aims to curb illegal construction, prevent property fraud and protect homebuyers from significant financial losses.

The Revenue Department has directed sub-registrars across the state to strictly verify the necessary approvals and documents before registering property transactions. The decision follows concerns over buildings constructed without the required permissions and flats sold in violation of approved development plans.

Revenue Minister Chandrashekhar Bawankule said the government wants to prevent buyers from being cheated into purchasing properties that may later face legal complications. Chief Minister Devendra Fadnavis has also highlighted the problem of unauthorised constructions across the Mumbai Metropolitan Region (MMR) and other parts of Maharashtra.

Under the new guidelines, developers selling flats for the first time in projects that require registration with the Maharashtra Real Estate Regulatory Authority (MahaRERA) must provide the relevant MahaRERA registration certificate or occupancy certificate, along with the approved building plan.

For projects that do not require MahaRERA registration, developers must submit the commencement certificate issued by the competent authority, the approved building plan, a zoning certificate and a measurement plan.

The authorities will also compare the flat's area mentioned in the transaction documents with the area approved in the sanctioned building plan. If the stated area exceeds the approved limit, the registration will not be permitted under the new instructions.

The government has clarified that buildings violating the Unified Development Control and Promotion Regulations (UDCPR), development plans or regional plans cannot be sold directly if they are unauthorised. Such buildings must first be regularised wherever the law permits.

Structures that cannot be regularised will continue to be treated as illegal and may face demolition, subject to the applicable legal procedures.

The government has also warned that sub-registrars who knowingly register documents relating to unauthorised constructions in violation of the instructions may face departmental inquiries.

The decision could bring greater scrutiny to property transactions, particularly in areas where unauthorised buildings and deviations from sanctioned plans have been reported. It is intended to reduce the risk of buyers investing their savings in properties that lack the required approvals.

Homebuyers are advised to verify a project's MahaRERA registration, sanctioned building plan, commencement certificate and occupancy certificate, wherever applicable, before making a purchase. They should also confirm that the flat's actual and documented area matches the approved plan.

Buyers should seek independent legal advice and verify the property's status with the relevant planning and registration authorities before signing an agreement or making substantial payments.

The stricter registration requirements could increase compliance responsibilities for developers and strengthen scrutiny of property transactions across Maharashtra. While projects with complete approvals may continue through the prescribed registration process, unauthorised developments could face greater difficulty in completing sales.