314 Housing Projects in Maharashtra at Risk of Insolvency: MahaRERA Issues Warning
Mumbai, 10th October 2024: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has revealed that 314 housing projects registered with it are currently under insolvency proceedings at the National Company Law Tribunal (NCLT) under the Insolvency an
Maharashtra Real EstateInsolvencyMahareraHomebuyersNcltReal Estate PuneOct 10, 2024
These insolvency proceedings have been initiated by various banks, financial institutions, and other entities that provide credit to the real estate sector. MahaRERA Chairman Manoj Saunik stressed the organization’s commitment to protecting homebuyers’ investments. “MahaRERA is working diligently to ensure that homebuyers’ investments remain secure. We have compiled this critical information regarding projects undergoing insolvency and bankruptcy proceedings from various sources, verifying it against the NCLT’s records. This comprehensive list has been made public to better serve the interests of homebuyers,” he stated. Saunik added, “In April 2023, we released a district-wise list of 308 such projects, which helped many homebuyers. We strongly urge everyone to consult this list before making a property purchase.”
Among the 314 projects listed, a significant amount of investment has been made. Of these, 56 projects are ongoing, with an average registration of apartments exceeding 34%. In contrast, 194 lapsed projects have an average registration rate of over 61%. Additionally, 64 projects have been completed, with an 84% registration rate for the apartments.
MahaRERA has implemented several measures to actively monitor real estate projects. Information provided by developers is thoroughly verified, and the authority stays updated on project statuses through various sources. The compilation of projects facing NCLT proceedings is based on information obtained from multiple channels and validated by relevant authorities.
The situation is particularly critical for investments in lapsed projects. In suburban Mumbai, 88 projects are under scrutiny, with 51 showing over 70% investment. In Pune, 75% of the 45 projects are already booked, while in Thane, 52 out of 106 projects have 50% investments. Palghar has 16 out of 18 projects with 74% bookings.
In Solapur, all five projects have 87% investment, while Nagpur has two projects with 60% investment. The sole lapsed project in Chhatrapati Sambhajinagar is 55% invested. Additionally, out of the nine lapsed projects in Mumbai City, two already have investments of 68%. In Nashik, all three lapsed projects show 34% investment, and in Raigad, 13 of the 15 lapsed projects are 32% invested.
Among the 56 ongoing projects, 21 are in Mumbai suburbs (38% investment), 20 in Thane (28% investment), six in Mumbai City (31% investment), five in Pune (41% investment), two in Palghar (65% investment), two in Raigad (9% investment), and one in Ratnagiri (no investment).
Of the 64 completed projects, 35 are in Thane, 18 in Mumbai suburbs, nine in the Haveli area, and two in Pune. The registration rates for completed projects are 91% in Thane, 87% in Mumbai suburbs, and 96% in Pune. On average, 84% of the apartments in completed projects have been registered.
It remains unclear whether these 314 projects undergoing insolvency proceedings are still accepting new customers. To promote transparency and protect homebuyers, MahaRERA has published the list on its portal, believing it will help alert and guide potential buyers. MahaRERA urges homebuyers to review the list before making a property purchase.
Frequently Asked Questions
What is MahaRERA and what is its role?
MahaRERA, the Maharashtra Real Estate Regulatory Authority, is responsible for regulating the real estate sector in Maharashtra. Its primary role is to protect the interests of homebuyers and ensure transparency and accountability in real estate transactions.
Why are these 314 housing projects facing insolvency?
These projects are facing insolvency primarily due to insolvency proceedings initiated by banks, financial institutions, and other entities that provide credit to the real estate sector. The proceedings are being handled by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code.
How can homebuyers protect themselves from investing in these projects?
MahaRERA has published a list of these 314 projects on its website. Homebuyers are strongly urged to review this list before making any property purchases to ensure they are not investing in a project undergoing insolvency proceedings.
What is the average investment rate in these projects?
The average investment rates vary among the projects. Ongoing projects have an average registration rate of over 34%, lapsed projects have an average rate of over 61%, and completed projects have an 84% registration rate.
What measures has MahaRERA taken to monitor these projects?
MahaRERA has implemented several measures, including thorough verification of information provided by developers and staying updated on project statuses through various sources. The authority also compiles and validates information from multiple channels to ensure accuracy.
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