314 Housing Projects in Maharashtra Facing Insolvency, MahaRERA Warns
Mumbai, 10th October 2024: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced that 314 housing projects registered with it are undergoing insolvency proceedings at the National Company Law Tribunal (NCLT). To protect homebuyers, Mah
InsolvencyMahareraReal EstateHousing ProjectsHomebuyersReal Estate NewsOct 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 highlighted the organization's commitment to protecting homebuyers' investments. “We are dedicated to ensuring that homebuyers’ investments remain safe. We have compiled this crucial information about projects undergoing insolvency and bankruptcy proceedings, verifying it against the NCLT’s records,” Saunik stated. He added, “In April 2023, we released a district-wise list of 308 such projects, which proved beneficial to many homebuyers. We urge everyone to check this list before making any property purchase decisions.”
Among the 314 projects listed, a significant number of investments have been made. Of these, 56 are ongoing projects, with an average registration of apartments exceeding 34%. Conversely, 194 lapsed projects have an average registration rate of over 61%. Additionally, 64 projects have been completed, showing an 84% registration rate for the apartments.
MahaRERA has implemented several measures to monitor real estate projects actively. Information provided by developers is thoroughly verified, and the authority stays updated on project statuses through various channels. The compilation of projects facing NCLT proceedings is based on information obtained from multiple sources 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, 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 purchasing a home.
Frequently Asked Questions
What is the current number of housing projects facing insolvency in Maharashtra?
Currently, 314 housing projects registered with MahaRERA are facing insolvency proceedings at the National Company Law Tribunal (NCLT).
Who initiated the insolvency proceedings for these housing projects?
The insolvency proceedings for these housing projects have been initiated by various banks, financial institutions, and other entities providing credit to the real estate sector.
How can homebuyers stay informed about these projects?
MahaRERA has published a list of these projects on its official website, and homebuyers are urged to consult this list before making any property purchase decisions.
What is the average registration rate of apartments in completed projects?
The average registration rate of apartments in completed projects is 84%, with higher rates in specific regions like Thane (91%) and Pune (96%).
How many ongoing projects are listed, and what is their average investment rate?
There are 56 ongoing projects listed, with an average investment rate exceeding 34%. The investment rates vary across different regions, such as Mumbai suburbs (38%) and Thane (28%).
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