How to verify a property developer in Mumbai

Verifying the corporate entity on the MCA registry

Sales brochures and real estate literature routinely display trading names that differ from the legal entity registered as the developer. Every legitimate corporate developer operating in India is registered under the Companies Act, 2013 or Limited Liability Partnership Act, 2008 with the Registrar of Companies (ROC) under the Ministry of Corporate Affairs (MCA).

To check a developer's corporate standing, navigate to the MCA21 online portal (mca.gov.in) and use the Company/LLP Master Data tool. Enter the developer corporate name or 21-digit Corporate Identification Number (CIN). The portal returns the official company status, registered office address, date of incorporation, authorized and paid-up capital, and the names and Director Identification Numbers (DIN) of all active directors.

Key details to verify on the MCA database include:

• Company Status: The status must show as Active. Statuses marked as Strike Off, Amalgamated, Under Liquidation or Dormant indicate serious regulatory or financial issues.
• Index of Charges: Under the Index of Charges tab, the MCA lists all secured loans, mortgages and debentures created by the company over its assets. Check whether the land or project assets have been mortgaged to banks or non-banking financial companies (NBFCs).
• Filing History: For a nominal public search fee of 100 rupees, buyers can access full annual financial statements (Form AOC-4) and annual returns (Form MGT-7) to evaluate the balance sheet and debt exposure.

Confirming land ownership and development rights

In Mumbai, a developer does not need to own land outright to construct a building; redevelopment and joint ventures under Development Agreements (DA) or Joint Development Agreements (JDA) are common. However, the buyer must confirm that clear, unencumbered land title or legal development rights exist.

Land records in urban Mumbai are maintained by the Land Records Department of the Government of Maharashtra. The single primary document for urban Mumbai land verification is the Property Card (Malmatta Patrak). In peripheral or rural zones of the Mumbai Metropolitan Region (MMR), the equivalent document is the 7/12 Extract (Satbara Utara).

To verify land records:

1. Identify the City Survey (CTS) Number, plot number and village/cadastral division from the project approval documents. 2. View the Property Card online via the Mahabhulekh portal (mahabhumi.gov.in) operated by the Maharashtra Revenue Department. 3. Check the ownership column on the Property Card. If the land is owned by a third party (such as a private individual, cooperative housing society, or public body like MHADA or SRA), the developer must possess a registered Development Agreement along with an Irrevocable Power of Attorney (POA). 4. Confirm that the Development Agreement and POA are registered with the Inspector General of Registration and Stamps (IGR Maharashtra) on the e-Stepin/e-Search portal (igrmaharashtra.gov.in). 5. Review the Encumbrance Certificate obtained from the Sub-Registrar of Assurances for the past 30 years to verify that the property is free from litigation, private liens, or government land-ceiling restrictions.

Verifying planning permissions and municipal approvals

In Mumbai, municipal planning permission is governed by the Municipal Corporation of Greater Mumbai (MCGM / BMC) under the Maharashtra Regional and Town Planning (MRTP) Act, 1966 and Development Control and Promotion Regulations (DCPR 2034).

Never accept a sales pitch based solely on an Intimation of Disapproval (IOD). An IOD is merely a preliminary list of conditions that a builder must satisfy; it does not grant authorization to construct. Construction is only legally authorized upon the issuance of a Commencement Certificate (CC).

Planning approvals must be verified through two official channels:

1. The MahaRERA Portal: Under the Real Estate (Regulation and Development) Act, 2016, all residential and commercial real estate projects in Maharashtra exceeding 500 square meters or 8 apartments must be registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA) on maharera.mahaonline.gov.in. Search the project's unique MahaRERA registration number. Under the 'Uploaded Documents' section, inspect the approved building layout plans, floor plans, and the official Commencement Certificate issued by the MCGM. 2. MCGM AutoDCR / One Building Plan Approval System (OBPAS): Cross-reference the CC file number (e.g. CHE/WS/1607/H/337) on the MCGM portal (mcgm.gov.in) to verify authenticity and check the specific floor levels approved.

Crucially, verify whether the CC is full or partial. A partial CC permits construction only up to a specific floor level (for example, up to the 5th floor). Buying an apartment on the 15th floor when the developer holds a CC only up to the 5th floor exposes the buyer to extreme risk.

Checking developer delivery records and track record

A builder's past track record provides direct insight into construction efficiency, regulatory compliance and delivery timeline performance.

To audit a developer's track record:

• MahaRERA Promoter Search: On the MahaRERA portal, search by the promoter's legal name or parent group. The system displays every registered project linked to that promoter, past and present.
• Past Project Performance: Examine completed projects to confirm if Occupancy Certificates (OC) or Partial OCs were obtained. Under RERA, developers are legally obligated to disclose delay histories, original completion dates versus actual completion dates, and any financial penalties incurred.
• Litigation History: MahaRERA mandates that developers declare all active court cases, arbitration proceedings and consumer disputes related to their projects. Open the 'Litigation Details' tab on the project page to view ongoing legal proceedings filed by previous buyers, landholders or municipal authorities.
• Revoked or Lapsed Projects: Check MahaRERA's public list of 'Lapsed Projects' and 'Revoked Registrations'. A project enters lapsed status if the registration period expires without an extension or completion certificate. Developers are legally barred from selling units in lapsed projects.

Red flags that should halt a purchase

Certain irregularities indicate severe financial or legal risks. Buyers should stop a purchase if any of the following conditions are met:

• Absence of MahaRERA Registration: Marketing or taking booking deposits for an unregistered project covered under RERA is illegal. Always verify the registration number on the official MahaRERA website prior to making any payment.
• Selling Beyond the Commencement Certificate: The developer offers apartments on floors higher than those authorized in the current CC.
• Demanding Cash or Payments Outside Escrow: RERA Section 4(2)(l) requires 70 percent of all buyer payments to be deposited directly into a designated project escrow bank account held at a scheduled bank. Demands for payments into unmonitored corporate accounts or in cash are illegal.
• Discrepancy Between Sales Layout and MahaRERA Approved Plans: Floor plans or amenity layouts shown in marketing brochures that differ from the government-approved plans uploaded on the MahaRERA portal.
• Unsatisfied Mortgage Charges: The Property Card or MCA Charge Register reveals an undisclosed bank loan or mortgage charge on the land that has not been acknowledged in the RERA disclosures or paired with a clear Bank No Objection Certificate (NOC).
• Demand for Non-Standard Terms: The developer refuses to execute an Agreement for Sale adhering to the standard MahaRERA Model Format or attempts to collection more than 10 percent of the purchase price before registering the Agreement for Sale.