MahaRERA Alerts Buyers as Over 300 Housing Projects in the State Face Insolvency

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a warning to homebuyers by publishing a list of 314 real estate projects currently facing corporate insolvency resolution processes at the National Company Law Tribunal (NCLT). This list is particularly important for those looking to invest in real estate, as it includes 236 projects from the Mumbai region, 52 from Pune, nine from Haveli, and five each from Ahmednagar and Solapur, among other districts. These insolvency and bankruptcy proceedings have been initiated by various banks, financial institutions, and organizations seeking to recover dues from the developers involved.

In April 2023, MahaRERA had previously released a list of 308 housing projects under similar scrutiny at the NCLT. Out of those projects, 64 have been completed, with an impressive 84% of the apartments booked. Additionally, 56 ongoing projects have also secured over 34% bookings. However, a concerning 194 projects have lapsed, although they still flaunt an average booking rate of over 61%.

MahaRERA has expressed uncertainty regarding whether the 314 projects currently undergoing insolvency proceedings are still accepting new customers. To enhance transparency and protect potential homebuyers from possible deception, the authority compiled and made this list accessible on its online portal. Projects listed include those from well-known developers such as Wadhwa Buildcon, Lavasa Corporation, DS Kulkarni Developers, HDIL, Neptune Developers, Nirmal Lifestyle (Kalyan) Private Limited, Radius Project Developers, and RNA Corp, among others.

In a proactive approach, MahaRERA has initiated several measures to closely monitor all real estate projects across the state. This involves not only verifying information provided by developers but also regularly tracking project statuses through various independent sources.

Among the 56 ongoing projects detailed in the report, 21 located in the Mumbai suburbs have achieved a rate of 38%, while 20 projects in Thane are at 28%, six in Mumbai City stand at 31%, and five in Pune report 41% bookings. For the 64 completed projects, 35 are situated in Thane, 18 in the Mumbai suburbs, nine in the Haveli area, and two in Pune. For project details you can visit NCLT Projects.

MahaRERA's chairman, Manoj Saunik, has urged prospective buyers to consult the list before making any property purchases. To promote transparency and protect homebuyers, MahaRERA has made the list of these projects available on its portal, aiming to inform and guide potential buyers. MahaRERA advises homebuyers to review the list before making a purchase decision.