MahaRERA Issues Warning: 314 Housing Projects Under Insolvency, Homebuyers Advised to Exercise Caution
MahaRERA has issued a warning to homebuyers about 314 housing projects that are currently undergoing insolvency proceedings. The list, available on MahaRERA’s website, includes projects with significant investments already made. Homebuyers are strongly ad
MahareraHousing ProjectsInsolvencyReal EstateHomebuyersReal Estate NewsOct 10, 2024
Significant investments have already been made in these 314 projects. Out of these, 56 are ongoing with an average registration of apartments over 34%. The remaining 194 projects are lapsed, with an average property registration of over 61%. Additionally, 64 projects have been completed, with a registration rate of 84% for the apartments.
Some of the developers involved in these projects include Wadhwa Buildcon LLP, Housing Development & Infrastructure Ltd (HDIL), Man Infraprojects, RNA Corp, Radius & Deserve LLP, Karrm Infrastructure, Man Realty, Lavasa Corp, Richa India Infra Development, Rashmi Housing, Nirmal Lifestyle, and Sheltrex Karjat.
MahaRERA has taken several measures to monitor all real estate projects. The regulator verifies information provided by developers and stays updated on project statuses through various sources. Manoj Saunik, Chairman of MahaRERA, said, “MahaRERA is consistently working to ensure that homebuyers' investments remain safe and protected. This list of 314 projects undergoing insolvency and bankruptcy is part of our efforts to alert homebuyers and prevent them from being deceived. In April 2023, MahaRERA had released a district-wise list of 308 such projects, which proved helpful to many homebuyers. We appeal to everyone to check this list before making any property purchase decisions.”
The list of projects facing insolvency proceedings is compiled based on information from various sources and verified through relevant authorities. It is unclear if these projects are still accepting new bookings. To ensure transparency and prevent homebuyers from being misled, MahaRERA has updated the list on its portal and strongly advises homebuyers to review it before making any decisions.
The data from MahaRERA shows that out of the 88 projects in suburban areas of Mumbai, 51 have seen 70% investment. In Pune, 75% of the 50 projects are already booked. In Thane, 52 out of 106 projects have seen 50% investment, and in Palghar, 16 out of 18 projects are 74% booked.
In Solapur, all 5 projects have 87% investment. In Nagpur, both projects have 60% investment, and the sole lapsed project in Chhatrapati Sambhajinagar is 55% invested. Of the 9 lapsed projects in Mumbai City, 2 have 68% investment. In Nashik, there is 34% investment in all 3 lapsed projects, and in Raigad, 13 out of 15 lapsed projects are 32% invested.
Among the 56 ongoing projects, 21 are from Mumbai suburbs with 38% bookings, 20 in Thane with 28% sales, 6 in Mumbai City with 31% bookings, and 5 in Pune with 41% sales.
Homebuyers are urged to exercise due diligence and refer to the updated list on MahaRERA’s website to make informed decisions and avoid potential financial pitfalls.
Frequently Asked Questions
What is MahaRERA and what does it do?
MahaRERA stands for the Maharashtra Real Estate Regulatory Authority. It is a regulatory body established to protect the rights of homebuyers and ensure transparency and accountability in the real estate sector. MahaRERA monitors and regulates real estate projects to ensure they comply with the Real Estate (Regulation and Development) Act, 2016 (RERA).
Why are these 314 projects under insolvency?
These 314 projects are under insolvency proceedings because various banks and financial institutions have initiated the Corporate Insolvency Resolution Process (CIRP) against the developers due to financial distress or defaults in payments.
Where can I find the list of these 314 projects?
The list of 314 projects under insolvency is available on the official website of MahaRERA. Homebuyers are advised to visit the website and review the list before making any property purchase decisions.
What are the consequences of buying a property in an insolvency project?
Buying a property in an insolvency project can lead to financial risks and legal complications. These projects may face delays, and there is a possibility that the project may not be completed. Therefore, it is crucial to check the MahaRERA list to avoid such risks.
How can I check the status of a real estate project before buying?
You can check the status of a real estate project by visiting the MahaRERA website and reviewing the list of projects under insolvency. Additionally, you can verify the project’s registration and compliance status on the RERA website. It is also advisable to consult with legal experts or real estate consultants to make informed decisions.
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