Maharashtra RERA warns homebuyers against 314 housing projects
Real Estate

Maharashtra RERA warns homebuyers against 314 housing projects

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has cautioned homebuyers against buying any properties in a total 314 projects registered with the authority that are undergoing proceedings at the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) of 2016.

Various banks, financial institutions, and other entities extending line of credit to the real estate sector have initiated the Corporate Insolvency Resolution Process (CIRP) against these companies.

In these 314 projects, significant investment has already been made. Of them, 56 are ongoing projects with an average registration of apartments at over 34%. Likewise, among the balance 194 projects that are lapsed, the average property registration done is over 61%. The balance 64 projects have been completed, with a registration rate of 84% for the apartments. Some of the projects of realty developers including 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 initiated several measures to keep a check of all real estate projects. The regulator verifies the information shared by the developers and also keeps itself abreast with project’s status through other sources.

“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 the efforts to alert the homebuyers and prevent them from getting deceived. In April 2023, MahaRERA had brought out a district wise list of 308 such projects, which proved to be helpful to several homebuyers. We appeal to everyone to check this list prior to deciding on purchasing a property,” said Manoj Saunik, Chairman, MahaRERA. The list of projects facing proceedings in NCLT, available on the regulator’s website, has been compiled based on information obtained from various sources and verified through the relevant authorities' as well.

It is unclear if these 314 projects undergoing insolvency and bankruptcy proceedings, are still accepting new bookings from customers. Therefore, in a bid to ensure transparency and prevent homebuyers from getting deceived, MahaRERA has updated the list on its portal and appealed to the homebuyers to go through the same before taking any decision.

Of the 88 projects in suburban localities of Mumbai, 51 have witnessed 70% investment. Similarly, in Pune, of the 50 projects, 75% of 45 projects are already booked. In Thane, 52 out of 106 projects have seen investments of 50%. In Palghar, 16 out of 18 projects are 74% booked. In Solapur, all the 5 projects have 87% investment. In Nagpur, both the projects have 60% investment and the sole lapsed project in Chhatrapati Sambhajinagar is 55% invested.

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

Of the 56 ongoing projects, 21 are from Mumbai suburbs with 38% bookings, 20 in Thane 28% sales, 6 in Mumbai City with 31% bookings, and 5 in Pune with 41% sales.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has cautioned homebuyers against buying any properties in a total 314 projects registered with the authority that are undergoing proceedings at the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) of 2016. Various banks, financial institutions, and other entities extending line of credit to the real estate sector have initiated the Corporate Insolvency Resolution Process (CIRP) against these companies. In these 314 projects, significant investment has already been made. Of them, 56 are ongoing projects with an average registration of apartments at over 34%. Likewise, among the balance 194 projects that are lapsed, the average property registration done is over 61%. The balance 64 projects have been completed, with a registration rate of 84% for the apartments. Some of the projects of realty developers including 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 initiated several measures to keep a check of all real estate projects. The regulator verifies the information shared by the developers and also keeps itself abreast with project’s status through other sources. “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 the efforts to alert the homebuyers and prevent them from getting deceived. In April 2023, MahaRERA had brought out a district wise list of 308 such projects, which proved to be helpful to several homebuyers. We appeal to everyone to check this list prior to deciding on purchasing a property,” said Manoj Saunik, Chairman, MahaRERA. The list of projects facing proceedings in NCLT, available on the regulator’s website, has been compiled based on information obtained from various sources and verified through the relevant authorities' as well. It is unclear if these 314 projects undergoing insolvency and bankruptcy proceedings, are still accepting new bookings from customers. Therefore, in a bid to ensure transparency and prevent homebuyers from getting deceived, MahaRERA has updated the list on its portal and appealed to the homebuyers to go through the same before taking any decision. Of the 88 projects in suburban localities of Mumbai, 51 have witnessed 70% investment. Similarly, in Pune, of the 50 projects, 75% of 45 projects are already booked. In Thane, 52 out of 106 projects have seen investments of 50%. In Palghar, 16 out of 18 projects are 74% booked. In Solapur, all the 5 projects have 87% investment. In Nagpur, both the projects have 60% investment and the sole lapsed project in Chhatrapati Sambhajinagar is 55% invested. Additionally, out of the 9 lapsed projects in Mumbai City, 2 of them already have an investment of 68%. In Nashik, there is 34% investment in all the 3 lapsed projects. Whereas, in Raigad, of the 15 lapsed projects, 13 are 32% invested, showed the data from the regulator. Of the 56 ongoing projects, 21 are from Mumbai suburbs with 38% bookings, 20 in Thane 28% sales, 6 in Mumbai City with 31% bookings, and 5 in Pune with 41% sales.

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