MahaRERA: 314 housing projects in Maharashtra about to become insolvent

Representative image/Shadab Khan

A total of 314 projects registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA) are undergoing proceedings at the National Company Law Tribunal (NCLT) under the insolvency and bankruptcy code. The real estate regulator has published the list on its website to prevent homebuyers from getting deceived.

The insolvency and bankruptcy proceedings have been initiated by various banks, financial institutions, and other entities extending lines of credit to the real estate sector.

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"In these 314 projects, significant investment has been made. Of them, 56 are ongoing projects with an average registration of apartments at over 34 per cent. Likewise, among the balance of 194 projects that are lapsed, the average registration done is over 61 per cent. The balance 64 projects have been completed, with a registration rate of 84 per cent for the apartments," pointed out a MahaRERA official, confirming the number.

MahaRERA has initiated several measures to keep a check on all real estate projects. Not only the information shared by the developers is verified, but also keeps itself abreast with the project's status through other sources. The list of projects facing proceedings in NCLT has been compiled based on information obtained from various sources and verified through the relevant authorities as well, the official added.

Suburban Mumbai tops the list

The issue is serious, especially about the investments made in the lapsed projects. Of the 88 projects in Suburban Mumbai, 51 are 70 per cent invested. Similarly, in Pune, of the 50 projects, 75 per cent of 45 projects are already booked. In Thane, 52 out of 106 projects have investments of 50 per cent. In Palghar, 16 out of 18 projects are 74 per cent booked.

In Solapur, all the 5 projects have 87 per cent investment. In Nagpur, both the projects have 60 per cent investment and the sole lapsed project in Chhatrapati Sambhajinagar is 55 per cent invested.

Additionally, out of the 9 lapsed projects in Mumbai City, 2 of them already have an investment of 68 per cent. In Nashik, there is a 34 per cent investment in all the 3 lapsed projects. Whereas, in Raigad, of the 15 lapsed projects, 13 are 32 per cent invested.

Of the 56 ongoing projects, 21 are from Mumbai suburbs (with 38 per cent investment), 20 in Thane (28 per cent investment), 6 in Mumbai City (31 per cent investment), 5 in Pune (41 per cent investment), 2 in Palghar (65 per cent investment), 2 in Raigad (9 per cent investment) and 1 in Ratnagiri (nil investment).

Among the 64 completed projects, 35 are in Thane and 18 in the Mumbai suburbs. Additionally, there are 9 projects in the Haveli area and 2 in Pune. The total percentage of registration done is 91 per cent for housing projects in Thane, 87 per cent of the apartments in Mumbai suburbs are registered, and 96 per cent in the case of projects in Pune. On average, 84 per cent of the apartments in all the completed projects have been registered.

"It is unclear if these 314 projects undergoing insolvency and bankruptcy proceedings are still accepting new customers. Hence, to ensure transparency and prevent homebuyers from getting deceived, MahaRERA has compiled the list and published it on its portal, as it is of the view that it will help in alerting and guiding people. MahaRERA has appealed to the homebuyers to go through the list before purchasing a home," the official stated.

'Ensuring buyers' investment is safe'

"MahaRERA is consistently working to ensure that homebuyers' investments remain safe and protected. MahaRERA has compiled this crucial information of the projects undergoing insolvency and bankruptcy proceedings from various sources and has also verified the same from NCLT's website. A comprehensive and compiled list has been made public for the larger interest of the homebuyers," said Manoj Saunik, MahaRERA Chairman.

MahaRERA Chairman Manoj Saunik

"The list of 314 projects undergoing insolvency and bankruptcy is part of the efforts to alert the homebuyers and prevent them from getting deceived. In April 2023, MahaRERA brought out a district-wise list of 308 such projects, which proved to be helpful to several homebuyers. MahaRERA appeals to everyone to check this list before deciding on purchasing a property," Saunik said.