MahaRERA Orders Statewide Scrutiny of 2,600 Occupancy Certificates Amid Real Estate Fraud Concerns

Action follows Kalyan-Dombivli scam; developers’ documents now under verification to protect homebuyers and enforce compliance

In a major step toward restoring trust in Maharashtra’s real estate sector, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has launched a statewide verification drive of 2,600 Occupancy Certificates (OCs) submitted by developers on its portal. The move comes in response to the massive 2022 Kalyan-Dombivli scam, where forged documents were used to construct 65 illegal buildings, leading to the displacement of over 6,500 residents and the arrest of 15 individuals, including developers and agents.

According to MahaRERA officials, these submitted OCs are now being sent to respective planning authorities for verification to confirm their authenticity and prevent forgery. Authorities have been given a 10-day deadline to respond. If no response is received within this period, MahaRERA will consider the OCs as valid, though any future irregularities will make the respective authority fully accountable.

“This verification is being conducted to catch discrepancies and protect homebuyers from misleading claims made by some developers,” said a senior MahaRERA official. “Only 136 OCs have been verified so far, with the rest still under process.”

Trigger: The KDMC Real Estate Scam

The crackdown was prompted by the 2022 Kalyan-Dombivli Municipal Corporation (KDMC) scandal, which exposed how fake 7/12 land records, fabricated building plans, and counterfeit MahaRERA registrations were used to greenlight unauthorized real estate projects. A demolition drive ordered by the Bombay High Court followed, displacing thousands.

Focus on Transparency and Buyer Protection

Under MahaRERA norms, developers cannot withdraw project funds from escrow accounts until the final OC is uploaded and verified. These certificates serve as a project’s completion proof and are critical for homebuyers to take legal possession.

Developers are also required to file quarterly progress updates, including financial disclosures, until a project is marked complete. Once a valid OC is confirmed, no further disclosures are required.

MahaRERA is now also checking whether developers are misrepresenting partial OCs as full OCs, a tactic often used to mislead homebuyers into believing that the entire project is ready for possession.

Integration Woes and Technical Delays

Despite earlier directives from the Urban Development Department (UDD) for local authorities to share verified documents, such as Commencement Certificates (CCs), building plans, and OCs—with MahaRERA, integration issues continue to delay the process. So far, only Mumbai’s municipal corporation has completed website integration with MahaRERA’s portal. Other local bodies have cited technical issues, which are now being addressed by the Maharashtra IT Department.

“Website integration would have streamlined the verification process considerably,” an official said, adding that OC uploads are often neglected by developers, even though CCs and building plans are submitted more frequently.

This verification initiative is part of MahaRERA’s broader mission to tighten oversight on developers, enforce transparency, and safeguard homebuyers from fraudulent practices. By validating these OCs, the authority aims to close gaps that have long been exploited in the real estate sector and ensure that only genuinely completed projects are granted approvals.