314 Housing Projects in Maharashtra Facing Insolvency, Warns MahaRERA
Mumbai, 10th October 2024: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced that 314 housing projects registered with it are currently undergoing proceedings at the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code. To safeguard homebuyers, MahaRERA has made the list of these projects publicly available on its website.
These insolvency proceedings have been initiated by various banks, financial institutions, and other entities providing credit to the real estate sector.
MahaRERA Chairman Manoj Saunik emphasized the organization’s commitment to protecting homebuyers’ investments. “MahaRERA is consistently working to ensure that homebuyers’ investments remain safe and protected. We have compiled this crucial 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 in the larger interest of homebuyers,” he stated. Saunik added, “In April 2023, we released a district-wise list of 308 such projects, which proved helpful to many homebuyers. We urge everyone to consult this list before deciding to purchase property.”
Among the 314 projects listed, a significant amount of investment has 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 also 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 critical, particularly regarding 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.
